To amend title 38, United States Code, and title 10, United States Code, to provide for an opportunity for active duty personnel to withdraw an election not to participate in the program of educational assistance under the Montgomery GI Bill.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Montgomery GI Bill Second Chance Act 
of 2007''.

SEC. 2. OPPORTUNITY FOR ACTIVE DUTY PERSONNEL TO WITHDRAW AN ELECTION 
              NOT TO PARTICIPATE IN THE MONTGOMERY GI BILL EDUCATION 
              PROGRAM.

    (a) In General.--Chapter 30 of title 38, United States Code, is 
amended by inserting after section 3018C the following new section:
``Sec. 3018D. Opportunity for certain active-duty personnel to enroll
    ``(a) Opportunity To Enroll.--(1) Notwithstanding any other 
provision of this chapter, during the month of October in any year, 
beginning with 2007, (hereinafter in this section referred to as the 
`open season') a qualified individual (described in subsection (b)) may 
make an irrevocable election under this section to become entitled to 
basic educational assistance under this chapter.
    ``(2) The Secretary of each military department shall provide for 
procedures for a qualified individual to make an irrevocable election 
under this section in accordance with regulations prescribed by the 
Secretary of Defense for the purpose of carrying out this section or 
which the Secretary of Homeland Security shall provide for such purpose 
with respect to the Coast Guard when it is not operating as a service 
in the Navy.
    ``(b) Qualified Individual.--A qualified individual referred to in 
subsection (a) is an individual who meets each of the following 
requirements:
            ``(1) The individual first became a member of the Armed 
        Forces or first entered on active duty as a member of the Armed 
        Forces before, on, or after July 1, 1985.
            ``(2) The individual has served on active duty without a 
        break in service since the date the individual first became 
        such a member or first entered on active duty as such a member.
            ``(3) The individual is serving on active duty during the 
        open season of the year involved.
            ``(4) The individual, before applying for benefits under 
        this section, has completed the requirements of a secondary 
        school diploma (or equivalency certificate) or has successfully 
        completed (or otherwise received academic credit for) the 
        equivalent of 12 semester hours in a program of education 
        leading to a standard college degree.
            ``(5) The individual, when discharged or released from 
        active duty, is discharged or released therefrom with an 
        honorable discharge.
    ``(c) Enrollment Fee.--(1) Subject to the succeeding provisions of 
this subsection, with respect to a qualified individual who makes an 
election under this section to become entitled to basic educational 
assistance under this chapter--
            ``(A) the basic pay of the qualified individual shall be 
        reduced (in a manner determined by the Secretary concerned) 
        until the total amount by which such basic pay is reduced is 
        $1,200; and
            ``(B) to the extent that basic pay is not so reduced before 
        the qualified individual's discharge or release from active 
        duty as specified in subsection (b)(5), at the election of the 
        qualified individual--
                    ``(i) the Secretary concerned shall collect from 
                the qualified individual; or
                    ``(ii) the Secretary concerned shall reduce the 
                retired or retainer pay of the qualified individual by, 
                an amount equal to the difference between $1,200 and 
                the total amount of reductions under subparagraph (A), 
                which shall be paid into the Treasury of the United 
                States as miscellaneous receipts.
    ``(2)(A) The Secretary concerned shall provide for an 18-month 
period, beginning on the date the qualified individual makes an 
election under this section, for the qualified individual to pay that 
Secretary the amount due under paragraph (1).
    ``(B) Nothing in subparagraph (A) shall be construed as modifying 
the period of eligibility for and entitlement to basic educational 
assistance under this chapter applicable under section 3031 of this 
title.
    ``(d) Limitation.--With respect to qualified individuals referred 
to in subsection (c)(1)(B), no amount of educational assistance 
allowance under this chapter shall be paid to the qualified individual 
until the earlier of the date on which--
            ``(1) the Secretary concerned collects the applicable 
        amount under clause (i) of such subsection; or
            ``(2) the retired or retainer pay of the qualified 
        individual is first reduced under clause (ii) of such 
        subsection.
    ``(e) Notice Required.--The Secretary concerned, in conjunction 
with the Secretary of Defense, shall provide for notice of the 
opportunity under this section to elect to become entitled to basic 
educational assistance under this chapter.''.
    (b) Conforming Amendments.--(1) Sections 3011(c)(1) and 3012(d)(1) 
of such title are each amended by striking ``Any individual'' in the 
third sentence and inserting ``Subject to section 3018D of this title, 
any individual''.
    (2) Section 3015(f) of such title is amended by striking ``or 
3018C'' and inserting ``3018C, or 3018D''.
    (3) Section 3017(b)(1) of such title is amended--
            (A) in subparagraph (A), by striking ``or 3018C(e)'' and 
        inserting ``3018C(e), or 3018D(d)'';
            (B) in subparagraph (B), by inserting ``or 3018D(d)'' after 
        ``3018C(e)''; or
            (C) in subparagraph (C), by striking ``or 3018C(e)'' and 
        inserting ``3018C(e), or 3018D(d)''.
    (c) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by inserting after the item relating to section 
3018C the following new item:

``3018D. Opportunity for certain active-duty personnel to enroll.''.

Summary: Montgomery GI Bill Second Chance Act of 2007 - Authorizes certain members of the Armed Forces to make an irrevocable election during October of any year beginning in 2005 to become entitled to basic educational assistance under the Montgomery GI Bill.

Requires a reduction in basic pay of those members electing such educational assistance or, if the member is discharged or released from active duty prior to such reduction, the collection of specified amounts from the member or an equivalent reduction in retired or retainer pay.

Requires the Secretary concerned, in conjunction with the Secretary of Defense, to provide notice of the opportunity created by this Act to elect educational assistance under the Montgomery GI Bill.