I
106TH CONGRESS
1ST SESSION
H. R. 1182
To amend title 38, United States Code, to expand and improve the Mont-
gomery GI Bill by creating an enhanced educational assistance program
for enlistments or reenlistments of four years active duty service, and
by eliminating the reduction in pay for basic educational benefits.
IN THE HOUSE OF REPRESENTATIVES
MARCH 18, 1999
Mr. STUMP (for himself, Mr. SPENCE, Mr. SMITH of New Jersey, Mr. QUINN,
Mr. EVERETT, Mr. HAYWORTH, Mrs. CHENOWETH, Mr. LAHOOD, Mr.
HANSEN, Mr. MCKEON, Mr. GIBBONS, Mr. TALENT, and Mr. BILIRAKIS)
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 amend title 38, United States Code, to expand and im-
prove the Montgomery GI Bill by creating an enhanced
educational assistance program for enlistments or re-
enlistments of four years active duty service, and by
eliminating the reduction in pay for basic educational
benefits.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Servicemembers Edu-
cational Opportunity Act of 1999’’.
SEC. 2. ENHANCED BENEFITS UNDER MONTGOMERY GI
BILL FOR FOUR YEARS OF ACTIVE-DUTY
SERVICE.
(a) IN GENERAL.—Chapter 30 of title 38, United
States Code, is amended by adding at the end the fol-
lowing new subchapter:
‘‘SUBCHAPTER V—ENHANCED EDUCATIONAL
ASSISTANCE
‘‘§ 3041. Enhanced educational assistance entitlement
‘‘(a) ENTITLEMENT.—An eligible individual is enti-
tled to enhanced educational assistance under this sub-
chapter.
‘‘(b) ELIGIBLE INDIVIDUAL DEFINED.—For pur-
poses of this subchapter, the term ‘eligible individual’
means an individual who meets the service requirement
described in subsection (c), who meets the education com-
pletion requirements described in subsection (d), and
whose status after completion of such service is described
in section 3011(a)(3) of this title. Such term does not in-
clude an individual described in paragraph (1) or (2) of
section 3011(c) of this title.
‘‘(c) SERVICE REQUIREMENT.—(1) The service re-
quirement referred to in subsection (b) is as follows:
‘‘(A) 
After 
September 
30, 
1999, 
the
individual—
‘‘(i) first enters on active duty;
‘‘(ii) reenlists or extends an enlistment on
active duty as a member of the Armed Forces;
or
‘‘(iii) in the case of an officer, continues to
serve on active duty after that date.
‘‘(B) From the date of such entry, reenlistment,
extension, or continuation, as the case may be, the
individual—
‘‘(i) serves a continuous period of active
duty of at least four years in the Armed Forces;
or
‘‘(ii) serves on active duty in the Armed
Forces and is discharged or released from ac-
tive duty—
‘‘(I) as provided in subclause (I) of
section 3011(a)(1)(A)(ii) of this title;
‘‘(II) for the convenience of the Gov-
ernment, after having completed not less
that 42 months of continuous active duty;
or
‘‘(III) as provided in subclause (III)
of section 3011(a)(1)(A)(ii) of this title.
‘‘(2) In determining service under paragraph (1), the
following rules apply:
‘‘(A) Any period of service described in para-
graph (2) or (3) of section 3011(d) of this title that
applies to an eligible individual under this section
shall not be considered a part of the individual’s pe-
riod of active duty.
‘‘(B) A member described in paragraph (2) of
section 3011(f) of this title who serves the periods
of active duty referred to in such paragraph shall be
deemed to have served a continuous period of active
duty the length of which is the aggregate length of
the periods of active duty referred to in such para-
graph.
‘‘(C) Subsections (g) and (h) of section 3011 of
this title apply with respect to an eligible individual
under this section in the same manner as they apply
to an individual under section 3011 of this title.
‘‘(d) EDUCATION COMPLETION REQUIREMENTS.—
The education completion requirement referred to in sub-
section (b) is that the individual shall have completed the
requirements of a secondary school diploma (or equiva-
lency certificate) by not later than the original ending date
of the individual’s period of active duty described in sub-
section (c)(1) regardless of whether the individual is dis-
charged or released from active duty on such date. An in-
dividual may meet the requirement of this subsection by
having been granted credit for the equivalent of 12 semes-
ter hours in a program of education leading to a standard
college degree before the end of the individual’s period of
active duty described in subsection (c)(1).
‘‘(e) ELECTION
OF BASIC EDUCATIONAL ASSIST-
ANCE.—(1) An eligible individual entitled to enhanced
educational assistance under this subchapter may elect (in
a form and manner prescribed by the Secretary) to receive
basic educational assistance under subchapter II in lieu
of such enhanced educational assistance for an enrollment
period. Such an election shall be made by not later than
30 days before the beginning of the enrollment period.
‘‘(2) An eligible individual may revoke an election
made pursuant to paragraph (1), but in no case may such
revocation be made later than 30 days before the begin-
ning of the enrollment period.
‘‘§ 3042. Duration of enhanced educational assistance
‘‘(a) IN GENERAL.—Subject to section 3695 of this
title and except provided in subsection (b), each individual
entitled to enhanced educational assistance under section
3041 of this title is entitled to a monthly enhanced edu-
cational assistance allowance under this subchapter for a
period or periods not to exceed a total of 36 months (or
the equivalent thereof in part-time enhanced educational
assistance).
‘‘(b) SPECIAL RULE FOR CERTAIN EARLY SEPARA-
TIONS.—Subject to section 3695 of this title, in the case
of an individual described in subclause (I) or (III) of sec-
tion 3041(c)(1)(B)(ii) who does not serve a continuous pe-
riod of active duty of at least four years in the Armed
Forces (as described in section 3041(c)(1)(B)(i) of this
title), the individual is entitled to one month of enhanced
educational assistance benefits under this subchapter (not
to exceed a total of 36 months (or the equivalent thereof
in part-time enhanced educational assistance)) for each
month of continuous active duty served by the individual
beginning with the date on which the entry on active duty,
reenlistment, enlistment extension, or continuation appli-
cable to that individual under section 3041(c)(1)(A) of
this title begins.
‘‘§ 3043. Payment of educational expenses
‘‘(a) IN GENERAL.—(1) Subject to paragraph (2), the
Secretary shall pay to the educational institution providing
a course under an approved program of education to an
eligible individual under this subchapter who is enrolled
in the course an amount equal to 90 percent of the actual
cost of tuition and fees otherwise payable by the indi-
vidual.
‘‘(2) Such cost may not exceed the amount charged
to similarly circumstanced nonveterans.
‘‘(b) STIPEND; COSTS OF BOOKS AND SUPPLIES.—
The Secretary shall pay to each eligible individual under
this subchapter who is pursuing an approved program of
education—
‘‘(1) a stipend as provided in section 3044 of
this title; and
‘‘(2) in accordance with regulations prescribed
by the Secretary, a sum equal to the reasonable cost
of books and supplies determined to be required by
similarly circumstanced nonveterans.
‘‘(c) INCLUSION IN INCOME FOR ELIGIBILITY DE-
TERMINATIONS FOR FEDERAL EDUCATIONAL LOANS.—
For purposes of determining untaxed income and benefits
for eligibility for student assistance under the provisions
of title IV of the Higher Education Act of 1965 (20 U.S.C.
1070 et seq.), amounts payable with respect to an eligible
individual under subsections (a) and (b)(2) shall not be
considered veterans education benefits for purposes of sec-
tion 480(vv) of such Act (20 U.S.C. 1087(vv)).
‘‘§ 3044. Amount of stipend
‘‘(a) IN GENERAL.—Except as provided in section
3042 of this title, the stipend under this subchapter shall
be paid at a monthly rate (as that rate may be increased
pursuant to subsection (b)) as follows:
‘‘(1) At the monthly rate of $600 for an ap-
proved program of education pursued on a full-time
basis.
‘‘(2) At the monthly rate of $450 for an ap-
proved program of education pursued on a three-
quarter-time basis.
‘‘(3) At the monthly rate of $300 for an ap-
proved program of education pursued on a half-time
basis.
‘‘(4) At the monthly rate of $150 for an ap-
proved program of education pursued on less than a
half-time basis.
‘‘(b) ADJUSTMENT FOR INFLATION.—With respect to
any fiscal year beginning after fiscal year 2000, the Sec-
retary shall increase the rate paid under subsection (a)(1)
for the previous fiscal year by the percentage applicable
under section 3015(g) of this title.
‘‘§ 3045. Tutorial assistance
‘‘An individual entitled to an enhanced educational
assistance allowance under this subchapter shall be enti-
tled to benefits provided an individual under section 3019
of this title, subject to the conditions provided in such sec-
tion.’’.
(b) CONFORMING AMENDMENTS.—(1) Section 3002
of such title is amended by inserting at the end the fol-
lowing new paragraph:
‘‘(9) The term ‘enhanced educational assistance’
means educational assistance provided under subchapter
V.’’.
(2) Section 3011 of such title is amended in sub-
sections (f)(1) and (g) by striking ‘‘chapter’’ each place
it appears and inserting ‘‘subchapter’’.
(3) Section 3018 of such title is amended by striking
‘‘educational assistance under this chapter’’ each place it
appears and inserting ‘‘educational assistance under this
subchapter’’.
(4) Section 3018A(a) of such title is amended by
striking ‘‘education assistance under this chapter’’ and in-
serting ‘‘educational assistance under this subchapter’’.
(5) Section 3018B of such title is amended by strik-
ing ‘‘education assistance under this chapter’’ each place
it appears and inserting ‘‘educational assistance under
this subchapter’’.
(6) Section 3018C of such title is amended—
(A) in subsection (a), by striking ‘‘educational
assistance under this chapter’’ and inserting ‘‘edu-
cational assistance under this subchapter’’; and
(B) in subsection (b), by striking ‘‘education as-
sistance under this chapter’’ and inserting ‘‘edu-
cational assistance under this subchapter’’.
(7) Section 3019 of such title is amended by striking
out ‘‘chapter’’ each place it appears and inserting in lieu
thereof ‘‘subchapter’’.
(8) Section 3031 of such title is amended—
(A) in subsection (f), by inserting ‘‘or 3042 of
this title’’ after ‘‘section 3013’’ each place it ap-
pears; and
(B) in subsection (g), by inserting ‘‘or
3031(c)(1)(B)(ii)(III)’’ 
after 
‘‘section
3011(a)(1)(A)(ii)(III)’’.
(9) Section 3032(e)(3) of such title is amended by
inserting ‘‘, or section 3044(a)(1)’’ after ‘‘section 3015’’.
(c) CLERICAL AMENDMENT.—The table of sections
at the beginning of chapter 30 of title 38, United States
Code, is amended by adding at the end the following new
items:
‘‘SUBCHAPTER V—ENHANCED EDUCATIONAL ASSISTANCE
‘‘3041. Enhanced educational assistance entitlement.
‘‘3042. Duration of enhanced educational assistance.
‘‘3043. Payment of educational expenses.
‘‘3044. Amount of stipend.
‘‘3045. Tutorial assistance.’’.
SEC. 3. REPEALS OF PAY REDUCTION AND ELECTION OF
BENEFITS.
(a) REPEALS.—
(1) ACTIVE DUTY PROGRAM.—(A) Section 3011
of title 38, United States Code, is amended—
(i) by striking subsection (b); and
(ii) in subsection (c), by striking out para-
graph (1) and redesignating paragraphs (2) and
(3) as paragraphs (1) and (2), respectively.
(B) Section 3012 of such title is amended—
(i) by striking subsection (c); and
(ii) in subsection (d), by striking out para-
graph (1) and redesignating paragraphs (2) and
(3) as paragraphs (1) and (2), respectively.
(2) OPPORTUNITIES TO WITHDRAW ELECTION
NOT TO ENROLL.—(A) Section 3016(a)(1) of such
title is amended by striking ‘‘, and does not make
an election under section 3011(c)(1) or section
3012(d)(1)’’.
(B) Sections 3018A, 3018B, and 3018C of
such title are each amended by adding at the end
the following new subsection:
‘‘(e) Notwithstanding subsection (b), no reduction in
the pay of an individual under this section shall be made
for months beginning after September 30, 1999. Any obli-
gation of such individual under subsection (b), as of Sep-
tember 30, 1999, shall be deemed to be fully satisfied as
of such date.’’.
(3) 
TERMINATION
OF
REDUCTIONS
IN
PROGRESS.—Any reduction in the basic pay of an
individual referred to in subsection (b) of section
3011 of title 38, United States Code, by reason of
such subsection, or of any individual referred to in
subsection (c) of section 3012 of such title by reason
of such subsection, shall cease commencing with
months beginning after September 30, 1999, and
any obligation of such individual under such sub-
sections, as the case may be, as of September 30,
1999, shall be deemed to be fully satisfied as of such
date.
(b) EDUCATION OUTREACH SERVICES TO MEMBERS
OF THE ARMED FORCES.—Section 3034(e)(1) of title 38,
United States Code, is amended to read as follows:
‘‘(e)(1) Not later than one year after an individual
initially enters on active duty as a member of the Armed
Forces, and at such additional times as the Secretary de-
termines appropriate, the Secretary shall furnish the indi-
vidual the information described in paragraph (2).’’.
(c) EFFECTIVE DATE.—The amendments made by
this section shall take effect on October 1, 1999, and apply
to individuals whose initial obligated period of active duty
under section 3011 or 3012 of title 38, United States
Code, as the case may be, begins on or after such date.
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