To amend title 38, United States Code, to modify the annual determination of the rate of the basic benefit of active duty educational assistance under the Montgomery GI Bill, and for other purposes.

January 7, 2003

Mr. JOHNSON (for himself and Mrs. COLLINS) introduced the following bill; which was read twice and referred to the Committee on Veterans' Affairs

To amend title 38, United States Code, to modify the annual determination of the rate of the basic benefit of active duty educational assistance under the Montgomery GI Bill, 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 `Veterans' Higher Education Opportunities Act of 2003'.

SEC. 2. MODIFICATION OF ANNUAL DETERMINATION OF BASIC BENEFIT OF ACTIVE DUTY EDUCATIONAL ASSISTANCE UNDER THE MONTGOMERY GI BILL.

(a) BASIC BENEFIT- Section 3015 of title 38, United States Code, is amended--

(1) in subsection (a)(1), by striking `at the monthly rate of--' and all that follows and inserting `at the monthly rate equal to the average monthly costs of tuition and expenses for commuter students at public institutions of higher education that award baccalaureate degrees (as determined under subsection (h)); or'; and

(2) in subsection (b)(1) by striking `at the monthly rate of--' and all that follows and inserting `at the monthly rate equal to 75 percent of the average monthly costs of tuition and expenses for commuter students at public institutions of higher education that award baccalaureate degrees (as determined under subsection (h)); or'.

(b) DETERMINATION OF AVERAGE MONTHLY COSTS- Subsection (h) of that section is amended to read as follows:

`(h)(1) Not later than September 30 each year, the Secretary shall determine the average monthly costs of tuition and expenses for commuter students at public institutions of higher education that award baccalaureate degrees for purposes of subsections (a)(1) and (b)(1) for the succeeding fiscal year. The Secretary shall determine such costs utilizing information obtained from the College Board or information provided annually by the College Board in its annual survey of institutions of higher education.

`(2) In determining the costs of tuition and expenses under paragraph (1), the Secretary shall take into account the following:

`(A) Tuition and fees.

`(B) The cost of books and supplies.

`(C) The cost of board.

`(D) Transportation costs.

`(E) Other nonfixed educational expenses.

`(3) A determination made under paragraph (1) in a year shall take effect on October 1 of that year and apply with respect to basic educational assistance allowances payable under this section for the fiscal year beginning in that year.

`(4) Not later than September 30 each year, the Secretary shall publish in the Federal Register the average monthly costs of tuition and expenses as determined under paragraph (1) in that year.

`(5) For purposes of this section, the term `institution of higher education' has the meaning given that term in section 101 of the Higher Education Act of 1965 (20 U.S.C. 1001).'.

(c) STYLISTIC AMENDMENT- Subsection (b) of that section is further amended in the matter preceding paragraph (1) by striking `as provided in the succeeding subsections of this section' and inserting `as otherwise provided in this section'.

(d) EFFECTIVE DATE- (1) Except as provided in paragraph (2), the amendments made by this section shall take effect on October 1, 2003.

(2) The Secretary of Veterans Affairs shall make the determination required by subsection (h) of section 3015 of title 38, United States Code (as amended by subsection (b) of this section), and such determination shall go into effect, for fiscal year 2004.

END