To amend title 38, United States Code, to improve benefits under the Montgomery GI Bill by establishing an enhanced educational assistance program and by repealing the requirement for reduction in pay for participation in the program, and for other purposes.

January 16, 2003

Mr. DAYTON introduced the following bill; which was read twice and referred to the Committee on Veterans' Affairs

To amend title 38, United States Code, to improve benefits under the Montgomery GI Bill by establishing an enhanced educational assistance program and by repealing the requirement for reduction in pay for participation in the program, and for other purposes.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the `Montgomery GI Bill Revitalization Act of 2003'.

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 following new subchapter:

`SUBCHAPTER V--ENHANCED EDUCATIONAL ASSISTANCE

`Sec. 3041. Enhanced educational assistance entitlement

`(a) ENTITLEMENT- An eligible individual is entitled to enhanced educational assistance under this subchapter.

`(b) ELIGIBLE INDIVIDUAL DEFINED- For purposes of this subchapter, the term `eligible individual' means an individual who meets the service requirement described in subsection (c) and whose status after completion of such service is described in section 3011(a)(2) of this title. Such term does not include an individual described in paragraph (1) or (2) of section 3011(c) of this title.

`(c) SERVICE REQUIREMENT- (1) The service requirement referred to in subsection (b) is as follows:

`(A) After September 30, 2003, 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 active duty--

`(I) as provided in subclause (I) of section 3011(a)(1)(A)(ii) of this title;

`(II) for the convenience of the Government, after having completed not less than 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 paragraph (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 period 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 paragraph.

`(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) ELECTION OF BASIC EDUCATIONAL ASSISTANCE- (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 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 beginning of the enrollment period.

`Sec. 3042. Duration of enhanced educational assistance

`(a) IN GENERAL- Subject to section 3695 of this title and except as provided in subsection (b), each individual entitled to enhanced educational assistance under section 3041 of this title is entitled to a monthly enhanced educational 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 SEPARATIONS- Subject to section 3695 of this title, in the case of an individual described in subclause (I) or (III) of section 3041(c)(1)(B)(ii) of this title who does not serve a continuous period 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 applicable to that individual under section 3041(c)(1)(A) of this title begins.

`Sec. 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 the actual cost of tuition and fees otherwise payable by the individual.

`(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, an amount equal to the average cost of books and supplies payable by individuals pursuing courses of education at educational institutions.

`(c) EXCLUSION FROM INCOME FOR ELIGIBILITY DETERMINATIONS FOR FEDERAL EDUCATIONAL LOANS- Notwithstanding any other provision of law, amounts payable by the Secretary under this subchapter with respect to an eligible individual shall not be considered as income for purposes of determining eligibility of such individual for education grants or loans under any other provision of Federal law.

`Sec. 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 $900 for an approved program of education pursued on a full-time basis.

`(2) At the monthly rate of $700 for an approved program of education pursued on a three-quarter-time basis.

`(3) At the monthly rate of $500 for an approved program of education pursued on a half-time basis.

`(4) At the monthly rate of $300 for an approved 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 2004, the Secretary shall increase the rate paid under subsection (a) for the previous fiscal year by the percentage applicable under section 3015(h) of this title.

`Sec. 3045. Tutorial assistance

`An individual entitled to an enhanced educational assistance allowance under this subchapter shall be entitled to benefits provided an individual under section 3019 of this title, subject to the conditions provided in such section.'.

(b) CONFORMING AMENDMENTS- (1) Section 3002 of such title is amended by inserting at the end the following new paragraph:

`(9) The term `enhanced educational assistance' means educational assistance provided under subchapter V.'.

(2) Section 3011 of such title is amended in subsection (f)(1) and (g) by striking `chapter' each place it appears and inserting `subchapter'.

(3) Section 3018A(a) of such title is amended by striking `education assistance under this chapter' and inserting `educational assistance under this subchapter'.

(4) Section 3018B of such title is amended by striking `education assistance under this chapter' each place it appears and inserting `educational assistance under this subchapter'.

(5) Section 3018C of such title is amended by striking `educational assistance under this chapter' each place it appears and inserting `educational assistance under this subchapter'.

(6) Section 3019 of such title is amended by striking `chapter' each place it appears and inserting `subchapter'.

(7) Section 3031 of such title is amended--

(A) in subsection (f), by inserting `or 3042 of this title' after `section 3013' each place it appears; and

(B) in subsection (h), by inserting `or 3031(c)(1)(B)(ii)(III)' after `section 3011(a)(1)(A)(ii)(III)'.

(8) 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 such title 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. REPEAL OF PAY REDUCTION, ELECTION OF BENEFITS, AND HIGH SCHOOL GRADUATION REQUIREMENT FOR PARTICIPATION IN BASIC EDUCATIONAL ASSISTANCE UNDER MONTGOMERY GI BILL.

(a) REPEAL OF PAY REDUCTION AND ELECTION OF BENEFITS-

(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 paragraph (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 paragraph (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 and 3018B 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, 2003. Any obligation of such individual under subsection (b) as of such date shall be deemed to be fully satisfied as of such date.'.

(C)(i) Section 3018C(e) of such title is amended--

(I) by striking paragraphs (3) and (4); and

(II) by redesignating paragraph (5) as paragraph (3).

(ii) Section 3018C of such title is amended by adding at the end the following new subsection:

`(f) Notwithstanding subsection (b), no reduction in the pay of an individual under this section shall be made for months beginning after September 30, 2003. Any obligation of such individual under subsection (b) as of such date shall be deemed to be fully satisfied as of such date.'.

(3) EFFECTIVE DATE- The amendments made by this subsection shall take effect on October 1, 2003, 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.

(4) TERMINATION OF PAY 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, 2003, and any obligation of such individual under such subsections, as the case may be, as of such date shall be deemed to be fully satisfied as of such date.

(b) REPEAL OF HIGH SCHOOL GRADUATION REQUIREMENT-

(1) ACTIVE DUTY- (A) Section 3011(a) of title 38, United States Code, is amended--

(i) by striking paragraph (2); and

(ii) by redesignating paragraph (3) as paragraph (2).

(B) Section 3012(a) of such title is amended--

(i) by striking paragraph (2); and

(ii) by redesignating paragraph (3) as paragraph (2).

(2) OPPORTUNITIES TO WITHDRAW ELECTION NOT TO ENROLL- (A) Section 3018(b) of such title is amended--

(i) by inserting `and' at the end of paragraph (3)(C);

(ii) by striking paragraph (4); and

(iii) by redesignating paragraph (5) as paragraph (4).

(B)(i) Section 3018A(a) of such title is amended--

(I) by striking paragraph (2);

(II) by redesignating paragraphs (3), (4), and (5) as paragraphs (2), (3), and (4), respectively; and

(III) in paragraphs (3) and (4), as so redesignated, by striking `paragraph (3) of this subsection' and inserting `paragraph (2)'.

(ii) Section 3018A(c) of such title is amended by striking `subsection (a)(3) of this section' and inserting `subsection (a)(2)'.

(iii) Section 3018A(d)(1) of such title is amended by striking `subsection (a)(4) of this subsection' and inserting `subsection (a)(3)'.

(C)(i) Section 3018B(a)(1) of such title is amended--

(I) by striking subparagraph (B);

(II) by redesignating subparagraphs (C), (D), and (E) as subparagraphs (B), (C), and (D), respectively; and

(III) in subparagraphs (C) and (D), as so redesignated, by striking `subparagraph (C) of this paragraph' and inserting `subparagraph (B)'.

(D)(i) Section 3018B(a)(2) of such title is amended--

(I) by striking subparagraph (B);

(II) by redesignating subparagraphs (C), (D), and (E) as subparagraphs (B), (C), and (D), respectively;

(III) in subparagraph (B), as so redesignated, by striking `paragraph (1)(C) of this subsection' and inserting `paragraph (1)(B)'; and

(IV) in subparagraphs (C) and (D), as so redesignated, by striking `subparagraph (C)' and inserting `subparagraph (B)'.

(ii) Section 3018B(c) of such title is amended by striking `subsection (a)(1)(C) or (a)(2)(C) of this section' and inserting `subsection (a)(1)(B) or (a)(2)(B)'.

(iii) Section 3018B(d)(1) of such title is amended by striking `subsection (a)(1)(D) or (a)(2)(D) of this section' and inserting `subsection (a)(1)(C) or (a)(2)(C)'.

(E)(i) Section 3018C(a) of such title is amended--

(I) by striking paragraph (3);

(II) by redesignating paragraphs (4) and (5) as paragraphs (3) and (4), respectively; and

(III) in paragraph (3), as so redesignated, by striking `paragraph (5)' and inserting `paragraph (4)'.

(ii) Section 3018C(b)(2) of such title is amended by striking `subsection (a)(4)' and inserting `subsection (a)(3)'.

(iii) Section 3018C(c)(1) of such title is amended by striking `subsection (a)(5)' and inserting `subsection (a)(4)'.

(iv) Section 3018C(e)(1) of such title is amended by striking `elections made under subsection (a)(5)' and inserting `elections made under subsection (a)(4)'.

(v) Section 3018C(e)(2) of such title is amended--

(I) by striking subparagraph (C); and

(II) by redesignating subparagraph (D) as subparagraph (C).

(3) EFFECTIVE DATE- The amendments made by this subsection shall take effect on October 1, 2003, and shall apply with respect to individuals applying for basic educational assistance under chapter 30 of title 38, United States Code, on or after such date.

(c) EDUCATION OUTREACH SERVICES TO MEMBERS OF THE ARMED FORCES-

(1) IN GENERAL- 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 determines appropriate, the Secretary shall furnish the individual the information described in paragraph (2).'.

(2) EFFECTIVE DATE- The amendment made by paragraph (1) shall take effect on October 1, 2003, and shall 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.

END