Increase in Rates Payable Under the Montgomery GI Bill-Active Duty and Other Miscellaneous Issues, 65260-65269 [E8-26176]

Download as PDF 65260 Federal Register / Vol. 73, No. 213 / Monday, November 3, 2008 / Rules and Regulations effect on State, local, and tribal governments, or on the private sector. Catalog of Federal Domestic Assistance Numbers and Titles The Catalog of Federal Domestic Assistance numbers and titles for the programs affected by this document are 64.009, Veterans Medical Care Benefits; 64.010, Veterans Nursing Home Care; and 64.011, Veterans Dental Care. List of Subjects in 38 CFR Part 1 Administrative practice and procedure, Archives and records, Cemeteries, Claims, Courts, Crime, Flags, Freedom of information, Government contracts, Government employees, Government property, Infants and children, Inventions and patents, Parking, Penalties, Privacy, Reporting and recordkeeping requirements, Seals and insignia, Security measures, Wages. applicable HHS regulations. VA medical centers must verify annually in January of each calendar year with the Food and Drug Administration (FDA) that an eye bank or tissue bank has complied with the FDA registration requirements of 21 CFR part 1271 and that the registration status is active before permitting an eye bank or tissue bank to receive protected health information. (Authority: 38 U.S.C. 5701(k), 7332(b)(2)(E)) 4. Revise § 1.514b(d), to read as follows: ■ § 1.514b Disclosures to procurement organizations. * Approved: September 30, 2008. Gordon H. Mansfield, Deputy Secretary of Veterans Affairs. For the reasons set out in the preamble, the interim final rule amending 38 CFR part 1, which was published at 72 FR 48239 on August 23, 2007, is adopted as a final rule with the following changes: ■ * * * * (d) The VHA health care facility has confirmed with HHS that it has certified or recertified the organ procurement organization as provided in the applicable HHS regulations. VA medical centers must verify annually in January of each calendar year with FDA that an eye bank or tissue bank has complied with the FDA registration requirements of 21 CFR Part 1271 and that the registration status is active before permitting an eye bank or tissue bank to receive protected health information. (Authority: 38 U.S.C. 5701(k), 7332(b)(2)(E)) [FR Doc. E8–26172 Filed 10–31–08; 8:45 am] BILLING CODE 8320–01–P PART 1—GENERAL PROVISIONS 1. The authority citation for part 1 continues to read as follows: DEPARTMENT OF VETERANS AFFAIRS Authority: 38 U.S.C. 501(a), and as noted in specific sections. 38 CFR Part 17 ■ 2. In § 1.460, revise the definitions for ‘‘Near death’’ and ‘‘Procurement organization’’ in alphabetical order to read as follows: ■ § 1.460 * * * * Near death. The term ‘‘near death’’ means that in the clinical judgment of the patient’s health care provider based on defined clinical triggers, the patient’s death is imminent. * * * * * Procurement organization. The term ‘‘procurement organization’’ means an organ procurement organization, eye bank, and/or tissue bank as defined in this section. * * * * * ■ 3. Revise § 1.485a(d), to read as follows: erowe on PROD1PC64 with RULES Eye, organ and tissue donation. * * * * * (d) The VHA health care facility has confirmed with HHS that it has certified or recertified the organ procurement organization as provided in the VerDate Aug<31>2005 15:09 Oct 31, 2008 Jkt 217001 Approved: October 27, 2008. Gordon H. Mansfield, Deputy Secretary of Veterans Affairs. [FR Doc. E8–26177 Filed 10–31–08; 8:45 am] Elimination of Co-Payment for Weight Management Counseling BILLING CODE 8320–01–P Department of Veterans Affairs. Direct final rule; confirmation of effective date. DEPARTMENT OF VETERANS AFFAIRS The Department of Veterans Affairs (VA) published a direct final rule amending our medical regulations to designate weight management counseling (individual and group sessions) as a service that is not subject to VA’s co-payment requirements. VA received no significant adverse comments concerning this rule or its companion substantially identical proposed rule published on the same date. This document confirms that the direct final rule became effective on June 16, 2008. In a companion document in this issue of the Federal Register, we are withdrawing as unnecessary that proposed rule. DATES: Effective date: June 16, 2008. FOR FURTHER INFORMATION CONTACT: Tony Guagliardo, Director, Business 38 CFR Part 21 AGENCY: Definitions. * § 1.485a RIN 2900–AM59 Policy, Chief Business Office (16), Veterans Health Administration, 810 Vermont Avenue, NW., Washington, DC 20420, (202) 461–1591 (this is not a tollfree number). SUPPLEMENTARY INFORMATION: In a direct final rule published in the Federal Register on April 16, 2008 (73 FR 20530), VA amended the medical regulations set forth at 38 CFR part 17 to eliminate co-payments for weight management counseling (individual and group sessions). VA published a companion substantially identical proposed rule (RIN 2900–AM81; 73 FR 20579) on the same date to serve as a proposal for the provisions in the direct final rule in case significant adverse comments were received. The direct final rule and proposed rule each provided a 30-day comment period that ended May 16, 2008. No adverse comments were received. Two public comments were received, both of which supported the proposed rule. Under the direct final rule procedures that we described in those documents, because no significant adverse comment was received within the comment period, the regulation became effective on the date specified in the direct final rule, June 16, 2008. In a companion document in this issue of the Federal Register, VA is withdrawing the proposed rule (RIN 2900–AM81) published at 73 FR 20579 as unnecessary. ACTION: SUMMARY: PO 00000 Frm 00020 Fmt 4700 Sfmt 4700 RIN 2900–AM45 Increase in Rates Payable Under the Montgomery GI Bill—Active Duty and Other Miscellaneous Issues Department of Veterans Affairs. Final rule. AGENCY: ACTION: SUMMARY: This document amends regulations governing education programs the Department of Veterans Affairs (VA) administers. In accordance with statutory requirements and previously established formulas, it amends the regulations to show increases in the monthly rates of basic educational assistance payable under the Montgomery GI Bill—Active Duty program, an increase in the percentage E:\FR\FM\03NOR1.SGM 03NOR1 Federal Register / Vol. 73, No. 213 / Monday, November 3, 2008 / Rules and Regulations erowe on PROD1PC64 with RULES payable to veterans pursuing apprenticeship or other on-job training, and a change in the formula used to calculate the entitlement charge for individuals pursuing apprenticeship or other on-job training. It also amends procedural provisions and delegations of authority regarding continuation of payments during emergency school closings. Furthermore, this document makes nonsubstantive technical changes for purposes of clarity and to remove obsolete provisions. DATES: Effective Date: This final rule is effective November 3, 2008. Applicability Dates: Certain amendments in this final rule are applied retroactively to conform to statutory requirements. For more information concerning the dates of applicability, see the SUPPLEMENTARY INFORMATION section of this document. FOR FURTHER INFORMATION CONTACT: Brandye R. Terrell, Regulation Development Team Leader, Education Service (225C), Veterans Benefits Administration, Department of Veterans Affairs, 810 Vermont Avenue, NW., Washington, DC 20420, telephone (202) 461–9822. SUPPLEMENTARY INFORMATION: I. Increase in Montgomery GI Bill— Active Duty Program Monthly Rates This document reflects changes made under a formula mandated by 38 U.S.C. 3015(h). Under this formula, the fulltime rates of basic educational assistance payable to students under the Montgomery GI Bill—Active Duty (MGIB) program were required to be increased by the percentage by which the total monthly Consumer Price Index—W, for the 12-month period ending on June 30th preceding the fiscal year during which the increase is applicable, exceeds the Consumer Price Index—W for the 12-month period ending on June 30th preceding the previous fiscal year. Using this formula, VA calculated a 3 percent increase for fiscal year (FY) 2006 (October 1, 2005, through September 30, 2006), a 4 percent increase for FY 2007 (October 1, 2006, through September 30, 2007), and a 2.5 percent increase for the period in FY 2008 prior to August 1, 2008 (October 1, 2007, through July 31, 2008), the effective date of section 5004 of Public Law 110–252 (122 Stat. 2379). The full-time basic educational assistance rates in this document reflect increases in accordance with the aforementioned statutory formula. It should be noted that the aforementioned increases do not affect all educational assistance payable under the MGIB. The increases apply only to VerDate Aug<31>2005 15:09 Oct 31, 2008 Jkt 217001 the basic educational assistance rate. The increases do not apply to additional amounts payable by the Secretary of Defense to individuals with skills or a specialty in which there is a critical shortage of personnel (also known as ‘‘kickers’’). Also, veterans who previously had eligibility under the Veterans’ Educational Assistance Program (Vietnam Era GI Bill) receive monthly payments that are in part based upon basic educational assistance and in part based upon the rates payable under the Vietnam Era GI Bill. Only that portion attributable to basic educational assistance is increased. In addition, the increases do not apply to additional amounts payable for dependents. The provisions of 38 U.S.C. 3015(a) and (b) require that VA pay part-time students at appropriately reduced rates. Since the first student became eligible for assistance under the MGIB in 1985, VA has paid three-quarter-time students and one-half-time students at 75 percent and 50 percent of the full-time institutional rate, respectively. Students pursuing a program of education at less than one-half but more than one-quarter time have had their payments limited to the prorated amount of tuition and fees not to exceed 50 percent of the full-time institutional rate. Similarly, students pursuing a program of education at onequarter time or less have had their payments limited to the prorated amount of tuition and fees not to exceed 25 percent of the full-time institutional rate. Changes are made consistent with the authority and formula described in this paragraph. The changes in §§ 21.7136 and 21.7137 in the MGIB monthly rates are applied retroactively to conform to statutory requirements, in accordance with the applicable statutory provisions discussed above. VA began paying the increased rates for FY 2006, FY 2007, and FY 2008 through July 31, 2008, effective for training pursued on or after October 1, 2005, October 1, 2006, and October 1, 2007, through July 31, 2008, respectively. II. Increase in the Percentage Payable and Modification of the Formula Used To Calculate Entitlement Charge for Veterans Pursuing Apprenticeship or Other On-Job Training The provisions of 38 U.S.C. 3032(c) require that veterans pursuing a fulltime program of apprenticeship or other on-job training be paid a percentage of the basic educational assistance fulltime monthly rate. Benefits for the first six months of training, the second six months of training, and the remainder of the program, are ordinarily payable under section 3032 at 75 percent, 55 PO 00000 Frm 00021 Fmt 4700 Sfmt 4700 65261 percent, and 35 percent, respectively. However, the Veterans Benefits Improvement Act of 2004 (Pub. L. 108– 454) temporarily increased the percentages payable for apprenticeship and other on-job training from 75 percent, 55 percent, and 35 percent to 85 percent, 65 percent, and 45 percent, respectively, after September 30, 2005, and before January 1, 2008. This final rule makes changes in §§ 21.7136(b)(2)(i) through (b)(2)(iii), (c)(2)(i) through (c)(2)(iii), (d)(4) through (d)(6), (f)(4), and (h)(2), and 21.7137(a)(2), consistent with the authority and formula described in this paragraph. The Veterans Benefits Improvement Act of 2004 also modified the formula used to calculate entitlement charges for certain apprenticeship and other on-job trainees. Prior to October 1, 2005, veterans with 38 U.S.C. chapter 34 entitlement were charged a month of entitlement for each month they received educational assistance. The entitlement charge was based on the length of training rather than the amount received for training. The Veterans Benefits Improvement Act of 2004 mandated that chapter 34 entitlement charged for training pursued on or after October 1, 2005, be reduced proportionately by the percentage rate (rounded to the nearest percentage) determined by dividing the amount of the training assistance paid for the month by the monthly educational assistance payable for full-time enrollment in an educational institution. This final rule makes changes in § 21.7076(b)(4) consistent with the authority and formula described in this paragraph, applicable to training pursued on or after October 1, 2005. VA began paying the increased percentages for veterans pursuing apprenticeship and other on-job training and using the aforementioned formula to calculate entitlement charge for training pursued on or after October 1, 2005, in accordance with the statutory provisions listed above. This final rule also makes nonsubstantive changes in the 38 U.S.C. chapter 34 entitlement provisions intended to clarify that entitlement charges are charges for record purposes and not monetary charges. E:\FR\FM\03NOR1.SGM 03NOR1 erowe on PROD1PC64 with RULES 65262 Federal Register / Vol. 73, No. 213 / Monday, November 3, 2008 / Rules and Regulations III. Changes in § 21.4138 To Amend Delegations of Authority, Reflect Current Agency Organization, and Make Clarifying Changes; Authority for Continuation of Payment of Educational Assistance During Temporary School Closings Our regulations prior to the changes made by this document granted the Director of the VA facility of jurisdiction for a school or schools affected by an emergency situation the authority to determine, applying the standards under § 21.4138(f), whether educational assistance is payable for breaks, including intervals between terms. In this document, we are amending those and other provisions in § 21.4138, Certifications and release of payments, to make changes in delegations of authority, reflect current agency organization, and make clarifying changes. Among the changes to reflect current agency organization, we use in § 21.4138(f) and in this preamble the term ‘‘VA Regional Processing Office of jurisdiction’’ rather than ‘‘VA facility of jurisdiction’’. Among the clarifying changes in § 21.4138(f), we change its heading to ‘‘Payments for intervals and temporary school closings’’ to better reflect its scope and similarly make changes in the text of § 21.4138(f) to better reflect the scope of its provisions, define interval, reorganize its provisions, and add headings within § 21.4138(f). When hurricanes cause emergency school closings in the jurisdiction of more than one VA Regional Processing Office, it is possible for the director of each VA Regional Processing Office to make a different decision as to continuation of payments. In order to provide prompt and consistent emergency instructions to all offices, we are amending § 21.4138(f) to elevate to the Director, Education Service, VA Central Office, the authority to determine whether to continue payments during school closings when the reasons for the closings cause schools under the jurisdiction of more than one VA Regional Processing Office to close. The Director of the VA Regional Processing Office of jurisdiction will retain the authority to determine if payments may be continued for school closings that only affect schools within that Director’s jurisdiction. The regulations do not authorize payment if in the judgment of the Director with jurisdiction the school closing will not be temporary. Under current § 21.4138(f), the Director of the VA Regional Processing Office of jurisdiction has authority to continue payments during a temporary VerDate Aug<31>2005 15:09 Oct 31, 2008 Jkt 217001 closing caused by a strike by the faculty or staff of a school that does not exceed 30 days. After that authorization for payment, the Director, Education Service, has authority to determine whether to continue payments if the closing lasts more than 30 days. We are amending § 21.4138(f) to clarify that their respective authority to continue payments during a strike that results in a school closure applies regardless of whether or not the school’s faculty or staff are on strike. If a school disagrees with a determination of whether to authorize payments for the period of a school closure, an opportunity for a review by the Director, Education Service, is provided by current § 21.4138(f)(2)(i)(B). Our amendments to § 21.4138 add, in § 21.4138(f)(6)(ii), a delegation of authority to the Under Secretary for Benefits to review initial decisions as to continuation of payments made by the Director, Education Service. IV. Miscellaneous Nonsubstantive Technical Changes for Purposes of Clarity and To Remove Obsolete Provisions In 1996, VA amended 38 CFR 21.7136 by renumbering paragraphs (a) through (e) as paragraphs (b) through (f), respectively. The amendments to § 21.7136 were published February 22, 1996, in the Federal Register (61 FR 6780, 6788–6789). In that final rule, we neglected to update the references within newly-redesignated paragraph (f) from paragraph (e) to (f). We are amending § 21.7136(f) in this document to update the incorrect reference citations. In 1996, VA removed 38 CFR 21.4205 governing absences, in a final rule published May 24, 1996, in the Federal Register (61 FR 26107–26117). In that final rule, we neglected to remove the references to § 21.4205 in §§ 21.4200(o) and 21.7140(d). This rule updates those two paragraphs as needed to reflect changes in our regulations. In 2000, VA amended 38 CFR 21.7045, adding paragraph (d). The final rule was published February 7, 2000, in the Federal Register (65 FR 5785–5788). In that final rule, we neglected to update the introductory paragraph of § 21.7136(f) to include a reference to § 21.7045(d), which concerns alternative eligibility requirements for persons with eligibility under 38 U.S.C. chapter 32 to qualify for eligibility under 38 U.S.C. chapter 30. In 2003, we amended § 21.7045 to add paragraph (e), which includes additional alternative eligibility requirements for persons eligible under 38 U.S.C chapter 32 to qualify for eligibility under 38 U.S.C. PO 00000 Frm 00022 Fmt 4700 Sfmt 4700 chapter 30. That final rule was published June 9, 2003, in the Federal Register (68 FR 34326–34332). In that final rule, we updated the introductory paragraph of § 21.7136(f) to add a reference to § 21.7045(e)(2), but we should have referred also to § 21.7045(d) and all of paragraph (e). This document makes that necessary amendment to the introductory paragraph of § 21.7136(f). In the same 2003 final rule, we amended 38 CFR 21.4138(f), ‘‘Payment for intervals between terms.’’ The SUPPLEMENTARY INFORMATION section of that final rule stated that changes made in that rule to § 21.4138(f) are applicable to MGIB, Survivors’ and Dependents’ Educational Assistance Program, Veterans Educational Assistance Program, and Montgomery GI Bill— Selected Reserve benefits and said that it would be applicable to the MGIB under § 21.7140 (66 FR at 34327). In that final rule, we neglected to amend § 21.7140. Changes were needed to assure that the amended provisions in § 21.4138(f) would be clearly applicable to MGIB benefits. This document amends § 21.7140(d) for purposes of clarity, to remove redundant provisions, to conform with § 21.4138(f) and, as we discuss above with respect to its obsolete citation of § 21.4205, to reflect changes in our regulations. In 2006, VA amended § 21.7139, in a final rule published December 18, 2006, in the Federal Register (71 FR 75672, 74678–75679). We erroneously referred in § 21.7139(f)(I)(i) to § 21.7136(b)(5) through (b)(8) and (c)(5) through (c)(8) and to § 21.7137(a)(5) through (a)(8), which our regulations did not then contain. We had intended instead to refer to § 21.7136(b)(2) and (c)(2) and to § 21.7137(a)(2). This document revises § 21.7139(f)(1)(i) to reflect the appropriate cross-references in conformance with this document’s changes to §§ 21.7136 and 21.7137. Those are the same references that have been appropriate since December 18, 2006. Administrative Procedure Act The changes made by this final rule merely are procedural rules, interpretive rules, nonsubstantive changes, or matters of agency organization and management, or they reflect statutory requirements and adjustments made based on previously established formulas. These changes are exempt from the notice-and-comment and delayed-effective-date requirements of 5 U.S.C. 553(b) and (d). Executive Order 12866 Executive Order 12866 directs agencies to assess all costs and benefits E:\FR\FM\03NOR1.SGM 03NOR1 Federal Register / Vol. 73, No. 213 / Monday, November 3, 2008 / Rules and Regulations they are defined in the Regulatory Flexibility Act. While some of its provisions in § 21.4138(f)(6) as to emergency school closings may affect small entities, any effect on small entities would be minuscule. Therefore, this final rule is also exempt pursuant to 5 U.S.C. 605(b) from the initial and final regulatory flexibility analyses requirements of sections 603 and 604. Paperwork Reduction Act of 1995 This document contains no provisions constituting a collection of information under the Paperwork Reduction Act of 1995 (44 U.S.C. 3501–3521). In 38 CFR 21.4138(f)(6), there are provisions for a school disagreeing with VA’s decision as to continuation of payments of educational assistance for periods of emergency closings to request an administrative review in writing. However, those provisions do not constitute a collection of information under the Act because they concern information collected from fewer than 10 persons annually. VA has received no such requests since at least 1993. erowe on PROD1PC64 with RULES of available regulatory alternatives and, when regulation is necessary, to select regulatory approaches that maximize net benefits (including potential economic, environmental, public health and safety, and other advantages; distributive impacts; and equity). The Executive Order classifies a regulatory action as a ‘‘significant regulatory action,’’ requiring review by the Office of Management and Budget (OMB) unless OMB waives such review, if it is a regulatory action that is likely to result in a rule that may: (1) Have an annual effect on the economy of $100 million or more or adversely affect in a material way the economy, a sector of the economy, productivity, competition, jobs, the environment, public health or safety, or State, local, or tribal governments or communities; (2) create a serious inconsistency or otherwise interfere with an action taken or planned by another agency; (3) materially alter the budgetary impact of entitlements, grants, user fees, or loan programs or the rights and obligations of recipients thereof; or (4) raise novel legal or policy issues arising out of legal mandates, the President’s priorities, or the principles set forth in the Executive Order. The economic, interagency, budgetary, legal, and policy implications of this final rule have been examined and it has been determined not to be a significant regulatory action under Executive Order 12866. List of Subjects in 38 CFR Part 21 Administrative practice and procedure, Armed forces, Civil rights, Claims, Colleges and universities, Conflict of interests, Education, Employment, Grant programs— education, Grant programs—veterans, Health care, Loan programs—education, Loan programs—veterans, Manpower training programs, Reporting and recordkeeping requirements, Schools, Travel and transportation expenses, Veterans, Vocational education, Vocational rehabilitation. Regulatory Flexibility Act The initial and final regulatory flexibility analyses requirements of sections 603 and 604 of the Regulatory Flexibility Act, 5 U.S.C. 601–612, are not applicable to this rule, because a notice of proposed rulemaking is not required for this rule. Even so, the Secretary of Veterans Affairs hereby certifies that this final rule will not have a significant economic impact on a substantial number of small entities as VerDate Aug<31>2005 15:09 Oct 31, 2008 Jkt 217001 Unfunded Mandates The Unfunded Mandates Reform Act of 1995 requires, at 2 U.S.C. 1532, that agencies prepare an assessment of anticipated costs and benefits before issuing any rule that may result in the expenditure by State, local, and tribal governments, in the aggregate, or by the private sector, of $100 million or more (adjusted annually for inflation) in any year. This final rule would have no such effect on State, local, and tribal governments, or on the private sector. Catalog of Federal Domestic Assistance The Catalog of Federal Domestic Assistance numbers and titles for the programs affected by this final rule are 64.117, Survivors and Dependents Educational Assistance; 64.120, PostVietnam Era Veterans’ Educational Assistance; and 64.124, All-Volunteer Force Educational Assistance. This final rule also affects the Montgomery GI Bill—Selective Reserve program, for which there is no Catalog of Federal Domestic Assistance program number. Approved: October 27, 2008. Gordon H. Mansfield, Deputy Secretary of Veterans Affairs. For the reasons stated above, the Department of Veterans Affairs amends 38 CFR part 21 (subparts D, K, and L) as follows: ■ PART 21—VOCATIONAL REHABILITATION AND EDUCATION Subpart D—Administration of Educational Assistance Programs 1. Revise the authority citation for part 21, subpart D to read as follows: ■ PO 00000 Frm 00023 Fmt 4700 Sfmt 4700 65263 Authority: 10 U.S.C. 2141 note, ch. 1606; 38 U.S.C. 501(a), chs. 30, 32, 34, 35, 36, and as noted in specific sections. 2. Amend § 21.4138 by: a. Adding introductory text. b. In paragraph (a)(1)(iv), removing ‘‘field facility’’ and adding, in its place, ‘‘Regional Processing Office’’. ■ c. In paragraph (a)(4) introductory text, removing ‘‘field station’’ and adding, in its place, ‘‘Regional Processing Office’’. ■ d. Revising paragraph (f). The addition and revision read as follows: ■ ■ ■ § 21.4138 Certifications and release of payments. For the purposes of this section, the Manila Regional Office is considered the VA Regional Processing Office of jurisdiction for educational assistance allowance claims processed under 38 U.S.C. chapter 35 for educational institutions located in the Philippines. * * * * * (f) Payment for intervals and temporary school closings. VA may authorize payment for an interval or for a temporary school closing that occurs within a certified enrollment period. If a school closing that is or may be temporary occurs during an interval, VA will apply any applicable provisions in paragraphs (f)(1) through (f)(5) of this section concerning intervals and in paragraph (f)(6) of this section concerning temporary school closings. For the purposes of this paragraph, interval means a period without instruction between consecutive school terms, quarters, or semesters or a period without instruction between a summer term and a term, quarter, or semester. (See definitions of divisions of the school year in § 21.4200(b).) (1) Payment for intervals. In determining whether a student will be paid for an interval, VA will first review the provisions of paragraph (f)(2) of this section. If none of the provisions apply, VA will review the provisions of paragraphs (f)(3), (f)(4), and (f)(5) of this section to determine if payments may be made for the interval. In determining the length of a summer term, VA will disregard a fraction of a week consisting of 3 days or less, and will consider 4 days or more to be a full week. (2) Restrictions on payment for intervals. VA will make no payment for an interval if: (i) The student is training at less than the half-time rate on the last day of training during the term, quarter, semester, or summer term preceding the interval; (ii) The student is on active duty; E:\FR\FM\03NOR1.SGM 03NOR1 65264 Federal Register / Vol. 73, No. 213 / Monday, November 3, 2008 / Rules and Regulations (iii) The student requests, prior to authorization of an award or prior to negotiating the check, that no benefits be paid for the interval period; (iv) The student’s entitlement applicable to such payment will be exhausted by receipt of such payment, and it is to the advantage of the student not to receive payment; (v) The interval occurs between school years at a school that is not organized on a term, quarter, or semester basis, (vi) The student withdraws from all courses in the term, quarter, semester, or summer session preceding the interval, or discontinues training before the scheduled start of an interval in a school not organized on a term, quarter, or semester basis; or (vii) The student receives an accelerated payment for the term, quarter, semester, or summer session preceding the interval. (3) Payment for interval between periods of enrollment at different schools. If the student transfers from one approved school for the purpose of enrolling in and pursuing a similar course at the second school, VA may make payments for an interval that does not exceed 30 days. If the student does not enroll in a similar course at the second school, VA may not make payments for the interval. (4) Payment for intervals that occur at the same school. (i) If the student remains enrolled at the same school, VA may make payment for an interval which does not exceed 8 weeks and which occurs between: (A) Semesters or quarters, (B) A semester or quarter and a term that is at least as long as the interval, (C) A semester or quarter and a summer term that is at least as long as the interval, (D) Consecutive terms (other than semesters or quarters) provided that both terms are at least as long as the interval, or (E) A term and summer term provided that both the term and the summer term are at least as long as the interval. (ii) If the student remains enrolled at the same school, VA may make payment for an interval that does not exceed 30 days and that occurs between summer sessions within a summer term. erowe on PROD1PC64 with RULES (Authority: 38 U.S.C. 3680) (5) Payment for intervals that occur between overlapping enrollments. (i) If a student is enrolled in overlapping enrollment periods whether before or after an interval (either at the same or different schools), VA will determine whether the student is entitled to payment for the interval between the VerDate Aug<31>2005 15:09 Oct 31, 2008 Jkt 217001 overlapping enrollment periods, and what dates the interval and enrollment periods will be considered to begin and end, as follows: (A) By treating the ending date of each enrollment period as though it were the student’s last date of training before the interval, (B) By treating the beginning date of each enrollment period as though it were the student’s first date of training after the interval, (C) By examining the interval payment that would be made to the student on the basis of the various combinations of beginning and ending dates, and (D) By choosing the ending date and beginning date that result in the highest payment rate as the start and finish of the interval for VA measurement purposes. (ii) VA will not reduce the interval rate of payment as a result of training the student may take during the interval, but VA will increase the interval rate of payment if warranted by such training. (Authority: 38 U.S.C. 3680(a)) (6) Payment for temporary school closings. VA may authorize payment for temporary school closings that are due to emergencies (including strikes) or established policy based upon an Executive Order of the President. If a school closing that is or may be temporary occurs in whole or in part during an interval, VA will first review the provisions of paragraphs (f)(2) through (f)(5) of this section to determine if payment may be continued during the interval. (i) If payment would not be inconsistent with the provisions of paragraphs (f)(2) through (f)(5) of this section, a determination to authorize payment for a period of a temporary school closing, or to not authorize payment if, in the judgment of the VA official specified in this paragraph, either the school closing will not be temporary or payment would not otherwise be in accord with this section, or both, will be made by: (A) The Director of the VA Regional Processing Office of jurisdiction if: (1) The reason for the school closing does not result in the closing of a school or schools in the jurisdiction of the Director of another VA Regional Processing Office, and (2) If the reason for the closing is a strike, the strike has lasted 30 days or less and is not anticipated to last more than 30 days. (B) The Director, Education Service if: (1) The reason for the school closing results in the closing of schools in the PO 00000 Frm 00024 Fmt 4700 Sfmt 4700 jurisdiction of more than one Director of a VA Regional Processing Office, or (2) The reason for the closing is a strike and the strike lasts, or is anticipated to last, more than 30 days. (ii) A school that disagrees with a decision made under paragraph (f)(6) of this section may request an administrative review. The review request must be submitted in writing and received by the Director of the VA Regional Processing Office of jurisdiction within one year of the date of VA’s letter notifying the school of the decision. A review of the decision will include the evidence of record and any other pertinent evidence the school may wish to submit. The affirmation or reversal of the initial decision based on an administrative review is final. The review will be conducted by the— (A) Director, Education Service, if the Director of the VA Regional Processing Office of jurisdiction made the initial decision to continue or discontinue payments. (B) Under Secretary for Benefits, if the Director, Education Service, made the initial decision to continue or discontinue payments. (Authority: 38 U.S.C. 512, 3680(a)) * * § 21.4200 * * * [Amended] 3. Amend § 21.4200(o)(2) by removing ‘‘under § 21.4205 for payment during a holiday vacation’’ and adding, in its place, ‘‘for payment but whose work is interrupted by a holiday vacation as defined in § 21.7020(b)(16),’’. ■ Subpart K—All Volunteer Force Educational Assistance Program (Montgomery GI Bill—Active Duty) 4. Revise the authority citation for part 21, subpart K, to read as follows: ■ Authority: 38 U.S.C. 501(a), chs. 30, 36, and as noted in specific sections. 5. Amend § 21.7076 by: a. In paragraph (b)(3) introductory text, adding ‘‘38 U.S.C.’’ immediately preceding ‘‘chapter 30’’. ■ b. Revising paragraph (b)(4). The revision reads as follows: ■ ■ § 21.7076 Entitlement charges. * * * * * (b) * * * (4) For each month that a veteran is paid a monthly educational assistance allowance while undergoing apprenticeship or other on-job training, including any month in which the veteran fails to complete 120 hours of training, VA will make a record-purpose charge against 38 U.S.C. chapter 34 entitlement, if any, as follows: E:\FR\FM\03NOR1.SGM 03NOR1 Federal Register / Vol. 73, No. 213 / Monday, November 3, 2008 / Rules and Regulations (i) For training that occurs before October 1, 2005, VA will reduce 38 U.S.C. chapter 34 entitlement by one month for each month of benefits paid. (ii) For training that occurs on or after October 1, 2005, VA will reduce 38 U.S.C. chapter 34 entitlement proportionately based on the percentage rate (rounded to the nearest percentage) determined by dividing the amount of the training assistance paid for the month by the monthly educational assistance payable for full-time enrollment in an educational institution. (Authority: 38 U.S.C. 3015(e), 3032(c), 3687; sec. 102, Pub. L. 108–454, 118 Stat. 3600) * * * * * ■ 6. Amend § 21.7136 by: ■ a. Revising paragraphs (b), (c)(1), (c)(2), (c)(3), (d)(4), (d)(5), (d)(6), (f)(4), and (h)(2); and revising the authority citation immediately following paragraph (h)(3). ■ b. In paragraph (f) introductory text, removing ‘‘or (e)(2)’’ and adding, in its place, ‘‘(d), or (e)’’. ■ c. In paragraph (f)(2), removing ‘‘(e)(2)(i)’’ each place that it appears, and adding, in its place, ‘‘(f)(2)(i)’’ and in paragraph (f)(2)(i) removing ‘‘(e)(1)’’ and adding, in its place ‘‘(f)(1)’’. ■ d. In paragraph (f)(3), removing ‘‘(e)(2)(i)’’ and adding, in its place, ‘‘(f)(2)(i)’’. The revisions read as follows: § 21.7136 Rates of payment of basic educational assistance. * * * * * (b) Rates. (1) Except as elsewhere provided in this section or in § 21.7139, basic educational assistance is payable to a veteran whose service is described in paragraph (a) of this section at the following monthly rates: (i) For training that occurs after September 30, 2005, and before October 1, 2006: Training Full time .................................... 3⁄4 time ...................................... 1⁄2 time ...................................... Less than 1⁄2 but more than 1⁄4 time ....................................... 1⁄4 time ...................................... Training Monthly rate Less than ⁄ but more than ⁄ time ....................................... 1⁄4 time ...................................... 12 537.50 268.75 (Authority: 38 U.S.C. 3015) Training Monthly rate Full time .................................... 3⁄4 time ...................................... 1⁄2 time ...................................... Less than 1⁄2 but more than 1⁄4 time ....................................... 1⁄4 time ...................................... $1101.00 825.75 550.50 550.50 275.25 (Authority: 38 U.S.C. 3015) (2) If a veteran’s service is described in paragraph (a) of this section, basic educational assistance is payable to the veteran for pursuit of apprenticeship or other on-job training at the following monthly rates: (i) For training that occurs after September 30, 2005, and before October 1, 2006: First six months of training ......... Second six months of training .... Remaining pursuit of training ..... $878.90 672.10 465.30 (Authority: 38 U.S.C. 3015, 3032(c)) (ii) For training that occurs after September 30, 2006, and before October 1, 2007: Monthly rate Training period First six months of training ......... Second six months of training .... Remaining pursuit of training ..... $913.75 698.75 483.75 (Authority: 38 U.S.C. 3015, 3032(c)) 258.50 erowe on PROD1PC64 with RULES Full time .................................... 3⁄4 time ...................................... 1⁄2 time ...................................... VerDate Aug<31>2005 15:09 Oct 31, 2008 $1075.00 806.25 537.50 Jkt 217001 (iv) For training that occurs after December 31, 2007, and before August 1, 2008: Fmt 4700 Training period Full time ...................................... 3⁄4 time ........................................ 1⁄2 time ........................................ Less than 1⁄2 but more than 1⁄4 time ......................................... 1⁄4 time or less ............................ Monthly rate $840.00 630.00 420.00 420.00 210.00 (Authority: 38 U.S.C. 3015) (ii) For training that occurs after September 30, 2006, and before October 1, 2007: Training period Full time ...................................... 3⁄4 time ........................................ 1⁄2 time ........................................ Less than 1⁄2 but more than 1⁄4 time ......................................... 1⁄4 time or less ............................ Monthly rate $873.00 654.75 436.50 436.50 218.25 (Authority: 38 U.S.C. 3015) 715.65 495.45 (Authority: 38 U.S.C. 3015, 3032(c)) Frm 00025 (c) * * * (1) Except as elsewhere provided in this section or in § 21.7139, basic educational assistance is payable to a veteran at the following monthly rates: (i) For training that occurs after September 30, 2005, and before October 1, 2006: (iii) For training that occurs after September 30, 2007, and before August $935.85 1, 2008: First six months of training ......... Second six months of training .... Remaining pursuit of training ..... PO 00000 (Authority: 38 U.S.C. 3015) Monthly rate (Authority: 38 U.S.C. 3015) Monthly rate $825.75 605.55 385.35 (3) If a veteran’s service is described in paragraph (a) of this section, the monthly rate of basic educational assistance payable to the veteran for pursuit of a cooperative course is— (i) $1034.00 for training that occurs after September 30, 2005, and before October 1, 2006; (ii) $1075.00 for training that occurs after September 30, 2006, and before October 1, 2007; and (iii) $1101.00 for training that occurs after September 30, 2007, and before August 1, 2008. Monthly rate Training period Training period Training First six months of training ......... Second six months of training .... Remaining pursuit of training ..... (Authority: 38 U.S.C. 3015, 3032(c)) (iii) For training that occurs after September 30, 2007, and before August 1, 2008: (iii) For training that occurs after September 30, 2007, and before January 1, 2008: 517.00 (ii) For training that occurs after September 30, 2006, and before October 1, 2007: Monthly rate 14 Monthly rate $1034.00 775.50 517.00 Training period 65265 Sfmt 4700 Training period Full time ...................................... 3⁄4 time ........................................ 1⁄2 time ........................................ Less than 1⁄2 but more than 1⁄4 time ......................................... E:\FR\FM\03NOR1.SGM 03NOR1 Monthly rate $894.00 670.50 447.00 447.00 65266 Federal Register / Vol. 73, No. 213 / Monday, November 3, 2008 / Rules and Regulations Monthly rate Training period ⁄ time or less ............................ 14 223.50 (2) Basic educational assistance is payable to a veteran for pursuit of apprenticeship or other on-job training at the following monthly rates: (i) For training that occurs after September 30, 2005, and before October 1, 2006: Monthly rate Training period First six months of training ......... Second six months of training .... Remaining pursuit of training ..... $714.00 546.00 378.00 (Authority: 38 U.S.C. 3015, 3032(c)) (ii) For training that occurs after September 30, 2006, and before October 1, 2007: Monthly rate Training period First six months of training ......... Second six months of training .... Remaining pursuit of training ..... $742.05 567.45 392.85 (Authority: 38 U.S.C. 3015, 3032(c)) (iii) For training that occurs after September 30, 2007, and before January 1, 2008: Monthly rate Training period First six months of training ......... Second six months of training .... Remaining pursuit of training ..... $759.90 581.10 402.30 (Authority: 38 U.S.C. 3015, 3032(c)) (iv) For training that occurs after December 31, 2007, and before August 1, 2008: Monthly rate Training period First six months of training ......... Second six months of training .... Remaining pursuit of training ..... $670.50 491.70 312.90 erowe on PROD1PC64 with RULES (Authority: 38 U.S.C. 3015, 3032(c)) (3) The monthly rate of basic educational assistance payable to a veteran for pursuit of a cooperative course is (i) $840.00 for training that occurs after September 30, 2005, and before October 1, 2006; (ii) $873.00 for training that occurs after September 30, 2006, and before October 1, 2007; and 15:09 Oct 31, 2008 (Authority: 38 U.S.C. 3015) * (Authority: 38 U.S.C. 3015) VerDate Aug<31>2005 (iii) $894.00 for training that occurs after September 30, 2007, and before August 1, 2008. Jkt 217001 * * * * (d) * * * (4) For individuals who first become members of the Armed Forces before November 29, 1989, and who are pursuing an apprenticeship or other onjob training, the increase may not exceed the rates shown below: (i) During the first 6 months of training the increase may not exceed $300 per month, except that during the period October 1, 2005, through December 31, 2007, for training that occurs during that period, the increase may not exceed $340 per month. (ii) During the second 6 months of training the increase may not exceed $220 per month, except that during the period October 1, 2005, through December 31, 2007, for training that occurs during that period, the increase may not exceed $260 per month. (iii) During the remaining months of training the increase may not exceed $140 per month, except that during the period October 1, 2005, through December 31, 2007, for training that occurs during that period, the increase may not exceed $180 per month. (5) For individuals who first become members of the Armed Forces during the period beginning November 29, 1989, and ending September 30, 1998, and who are pursuing an apprenticeship or other on-job training, the increase may not exceed the rates shown below: (i) During the first 6 months of training the increase may not exceed $525 per month, except that during the period October 1, 2005, through December 31, 2007, for training that occurs during that period, the increase may not exceed $595 per month. (ii) During the second 6 months of training the increase may not exceed $385 per month, except that during the period October 1, 2005, through December 31, 2007, for training that occurs during that period, the increase may not exceed $455 per month. (iii) During the remaining months of training the increase may not exceed $245 per month, except that during the period October 1, 2005, through December 31, 2007, for training that occurs during that period, the increase may not exceed $315 per month. (6) For individuals who first become members of the Armed Forces after September 30, 1998, and who are pursuing apprenticeship or other on-job training, the increase may not exceed the rates shown below: (i) During the first 6 months of training the increase may not exceed PO 00000 Frm 00026 Fmt 4700 Sfmt 4700 $712.50 per month, except that during the period October 1, 2005, through December 31, 2007, for training that occurs during that period, the increase may not exceed $807.50 per month. (ii) During the second 6 months of training the increase may not exceed $522.50 per month, except that during the period October 1, 2005, through December 31, 2007, for training that occurs during that period, the increase may not exceed $617.50 per month. (iii) During the remaining months of training the increase may not exceed $332.50 per month, except that during the period October 1, 2005, through December 31, 2007, for training that occurs during that period, the increase may not exceed $427.50 per month. (Authority: 38 U.S.C. 3015, 3032; sec. 103, Pub. L. 108–454, 118 Stat. 3600) * * * * * (f) * * * (4) For a veteran pursuing a program of apprenticeship or other on-job training— (i) During periods before October 1, 2005, and after December 31, 2007, VA will multiply the monthly rate determined by paragraph (f)(2)(i) of this section— (A) By.75 for a veteran in the first six months of pursuit of training, (B) By.55 for a veteran in the second six months of pursuit of training, or (C) By.35 for a veteran in the remaining months of pursuit of training. (ii) During the period beginning October 1, 2005, and ending December 31, 2007, VA will multiply the monthly rate determined by paragraph (f)(2)(i) of this section— (A) By.85 for a veteran in the first six months of pursuit of training, (B) By.65 for a veteran in the second six months of pursuit of training, or (C) By.45 for a veteran in the remaining months of pursuit of training. (Authority: 38 U.S.C. 3015(e); sec. 103, Pub. L. 108–454, 118 Stat. 3600) * * * * * (h) * * * (2) If a veteran is pursuing apprenticeship or other on-job training— (i) During periods before October 1, 2005, and after December 31, 2007, VA will increase the veteran’s monthly educational assistance that is otherwise payable— (A) During the first 6 months of pursuit of training, by $3.75 for every $20 the veteran contributed, (B) During the second 6 months of pursuit of training, by $2.75 for every $20 the veteran contributed, or (C) During the remaining months of the veteran’s pursuit of training, by E:\FR\FM\03NOR1.SGM 03NOR1 Federal Register / Vol. 73, No. 213 / Monday, November 3, 2008 / Rules and Regulations $1.75 for every $20 the veteran contributed. (ii) During the period beginning October 1, 2005, and ending December 31, 2007, VA will increase the veteran’s monthly educational assistance that is otherwise payable— (A) During the first 6 months of pursuit of training, by $4.25 for every $20 the veteran contributed, (B) During the second 6 months of pursuit of training, by $3.25 for every $20 the veteran contributed, or (C) During the remaining months of the veteran’s pursuit of training, by $2.25 for every $20 the veteran contributed. * * * * * (3) * * * (Authority: 38 U.S.C. 3015(g); sec. 103, Pub. L. 108–454, 118 Stat. 3600) * * * * * 7. Amend § 21.7137 by revising paragraphs (a) and (c) to read as follows: ■ 65267 § 21.7137 Rates of payment of basic educational assistance for individuals with remaining entitlement under 38 U.S.C. chapter 34. (a) Minimum rates. (1) Except as elsewhere provided in this section, basic educational assistance is payable to individuals with remaining entitlement under 38 U.S.C. chapter 34 at the following monthly rates: (i) For training that occurs after September 30, 2005, and before October 1, 2006: Monthly rate Training No dependents Full time ........................................................................................................................... 3⁄4 time ............................................................................................................................. 1⁄2 time ............................................................................................................................. Less than 1⁄2 but more than 1⁄4 time ................................................................................ 1⁄4 time or less ................................................................................................................. (Authority: 38 U.S.C. 3015) $1222.00 917.00 611.00 611.00 305.50 One dependent $1258.00 943.50 629.00 611.00 305.50 Two dependents $1289.00 967.00 644.50 611.00 305.50 Additional for each additional dependent $16.00 12.00 8.50 0 0 (ii) For training that occurs after September 30, 2006, and before October 1, 2007: Monthly rate Training No dependents Full time ........................................................................................................................... 3⁄4 time ............................................................................................................................. 1⁄2 time ............................................................................................................................. Less than 1⁄2 but more than 1⁄4 time ................................................................................ 1⁄4 time or less ................................................................................................................. (Authority: 38 U.S.C. 3015) $1263.00 947.75 631.50 631.50 315.75 One dependent $1299.00 974.25 649.50 631.50 315.75 Two dependents $1330.00 997.75 665.00 631.50 315.75 Additional for each additional dependent $16.00 12.00 8.50 0 0 (iii) For training that occurs after September 30, 2007, and before August 1, 2008: Monthly rate Training No dependents Full time ........................................................................................................................... 3⁄4 time ............................................................................................................................. 1⁄2 time ............................................................................................................................. Less than 1⁄2 but more than 1⁄4 time ................................................................................ 1⁄4 time or less ................................................................................................................. (Authority: 38 U.S.C. 3015) erowe on PROD1PC64 with RULES (2) For veterans pursuing apprenticeship or other on-job training, VerDate Aug<31>2005 15:09 Oct 31, 2008 Jkt 217001 $1289.00 967.25 644.50 644.50 322.25 basic educational assistance is payable for training at the following monthly rates: PO 00000 Frm 00027 Fmt 4700 Sfmt 4700 One dependent $1325.00 993.75 662.50 644.50 322.25 Two dependents $1356.00 1017.25 678.00 644.50 322.25 Additional for each additional dependent $16.00 12.00 8.50 0 0 (i) For training that occurs after September 30, 2005, and before October 1, 2006: E:\FR\FM\03NOR1.SGM 03NOR1 65268 Federal Register / Vol. 73, No. 213 / Monday, November 3, 2008 / Rules and Regulations Monthly rate Training No dependents 1st six months of pursuit of program ............................................................................... 2nd six months of pursuit of program ............................................................................. 3rd six months of pursuit of program .............................................................................. Remaining pursuit of program ......................................................................................... (Authority: 38 U.S.C. 3015) $995.35 738.73 495.90 480.60 One dependent $1009.38 749.78 503.78 488.03 Two dependents $1021.70 758.88 509.85 494.78 Additional for each additional dependent $5.95 4.55 3.15 3.15 (ii) For training that occurs after September 30, 2006, and before October 1, 2007: Monthly rate Training No dependents 1st six months of pursuit of program ............................................................................... 2nd six months of pursuit of program ............................................................................. 3rd six months of pursuit of program .............................................................................. Remaining pursuit of program ......................................................................................... (Authority: 38 U.S.C. 3015) $1030.20 765.38 514.35 499.05 One dependent $1044.23 776.43 522.23 506.48 Two dependents $1056.55 785.53 528.30 513.23 Additional for each additional dependent $5.95 4.55 3.15 3.15 (iii) For training that occurs after September 30, 2007 and before January 1, 2008: Monthly rate Training No dependents 1st six months of pursuit of program ............................................................................... 2nd six months of pursuit of program ............................................................................. 3rd six months of pursuit of program .............................................................................. Remaining pursuit of program ......................................................................................... (Authority: 38 U.S.C. 3015) $1052.30 782.28 526.05 510.75 One dependent $1066.33 793.33 533.93 518.18 Two dependents $1078.65 802.43 540.00 524.93 Additional for each additional dependent $5.95 4.55 3.15 3.15 (iv) For training that occurs after December 31, 2007, and before August 1, 2008: Monthly rate Training No dependents 1st six months of pursuit of program ............................................................................... 2nd six months of pursuit of program ............................................................................. 3rd six months of pursuit of program .............................................................................. Remaining pursuit of program ......................................................................................... erowe on PROD1PC64 with RULES (Authority: 38 U.S.C. 3015) 15:09 Oct 31, 2008 Jkt 217001 No dependents One dependent Two dependents $1222.00 $1258.00 $1289.00 PO 00000 Frm 00028 Fmt 4700 Sfmt 4700 $940.88 671.28 415.28 403.03 Two dependents $951.75 678.98 420.00 408.28 Additional for each additional dependent $5.25 3.85 2.45 2.45 (Authority: 38 U.S.C. 3015) Monthly rate (3) The monthly rate of basic educational assistance payable to a veteran who is pursuing a cooperative course is the rate stated in the following tables: (i) For training that occurs after September 30, 2005, and before October 1, 2006: VerDate Aug<31>2005 $928.50 661.93 409.15 397.25 One dependent Additional for each additional dependent (ii) For training that occurs after September 30, 2006, and before October 1, 2007: $16.00 E:\FR\FM\03NOR1.SGM 03NOR1 Federal Register / Vol. 73, No. 213 / Monday, November 3, 2008 / Rules and Regulations Monthly rate No dependents $1263.00 One dependent $1299.00 Two dependents Additional for each additional dependent $1330.00 $16.00 Subpart L—Educational Assistance for Members of the Selected Reserve 10. Revise the authority citation for part 21, subpart L to read as follows: ■ Authority: 10 U.S.C. ch. 1606; 38 U.S.C. 501(a), 512, ch. 36 and as noted in specific sections. 11. Amend § 21.7640 by: a. Revising the heading for paragraph (b). ■ b. In paragraph (b), removing ‘‘a break, including an interval between terms’’ and adding, in its place, ‘‘an interval or temporary school closing’’. The revision reads as follows: ■ ■ (Authority: 38 U.S.C. 3015) (iii) For training that occurs after September 30, 2007, and before August 1, 2008: Monthly rate No dependents One dependent Two dependents $1289.00 $1325.00 Additional for each additional dependent $1356.00 § 21.7640 Release of payments. * * * * * (b) Payment for intervals and temporary school closings. * * * $16.00 * * * * * * * * * (c) Rates for servicemembers. Except as provided in paragraph (d) of this section, the monthly rate of basic educational assistance for a servicemember may not exceed the lesser of: (1) The monthly rate stated in paragraph (a) of this section; or (2) The monthly rate of the cost of the course. If there is no cost for the course, educational assistance is not payable. (Authority: 38 U.S.C. 3015) * * * * * 8. Amend § 21.7139 by revising paragraph (f)(1)(i) to read as follows: ■ § 21.7139 Conditions which result in reduced rates or no payment. * * * * * (f) * * * (1) * * * (i) The rates specified in §§ 21.7136(b)(2), (c)(2), (d)(4) through (d)(6), (f)(4), and (h)(2) and 21.7137(a)(2); and * * * * * ■ 9. Amend § 21.7140 by revising paragraph (d) to read as follows: § 21.7140 Certifications and release of payments. erowe on PROD1PC64 with RULES * * * * * (d) Payment for intervals and temporary school closings. In administering 38 U.S.C. chapter 30, VA will apply the provisions of § 21.4138(f) when determining whether an individual is entitled to payment for an interval or temporary school closing. (Authority: 38 U.S.C. 3034, 3680) * VerDate Aug<31>2005 * * 15:09 Oct 31, 2008 SUPPLEMENTARY INFORMATION: Table of Contents BILLING CODE 8320–01–P I. Background Information II. Public Comment and EPA Response III. EPA Action IV. Administrative Requirements A. Executive Order 12866: Regulatory Planning and Review B. Paperwork Reduction Act C. Regulatory Flexibility Act D. Unfunded Mandates Reform Act E. Executive Order 13132: Federalism F. Executive Order 13175: Coordination With Indian Tribal Government G. Executive Order 13045: Protection of Children From Environmental Health Risks and Safety Risks H. Executive Order 13211: Actions That Significantly Affect Energy Supply, Distribution, or Use I. National Technology Transfer and Advancement Act J. Congressional Review Act K. Petitions for Judicial Review * * approved by the Director of the Federal Register as of December 3, 2008. ADDRESSES: EPA has established a docket for this action under Docket ID Number EPA–R02–OAR–2008–0308. All documents in the docket are listed on the https://www.regulations.gov Web site. Publicly available docket materials are available either electronically through https://www.regulations.gov or in hard copy at the U.S. Environmental Protection Agency, Region 2, 290 Broadway, New York, New York 10007. FOR FURTHER INFORMATION CONTACT: Steven Riva, Air Programs Branch, U.S. Environmental Protection Agency, Region 2, 290 Broadway, New York, New York 10007; telephone number: (212) 637–4074; e-mail address: riva.steven@epa.gov. [FR Doc. E8–26176 Filed 10–31–08; 8:45 am] (Authority: 38 U.S.C. 3015) * 65269 Jkt 217001 ENVIRONMENTAL PROTECTION AGENCY 40 CFR Part 55 [EPA–R02–OAR–2008–0308; FRL–8731–2] Outer Continental Shelf Air Regulations Update To Include New Jersey State Requirements Environmental Protection Agency (EPA). ACTION: Final rule. AGENCY: SUMMARY: EPA is finalizing the update of the Outer Continental Shelf (OCS) Air Regulations proposed in the Federal Register on July 7, 2008. Requirements applying to OCS sources located within 25 miles of States’ seaward boundaries must be promulgated into part 55 and updated periodically to remain consistent with the requirements of the corresponding onshore area (COA), as mandated by section 328(a)(1) of the Clean Air Act (CAA). The portion of the OCS air regulations that is being updated pertains to the requirements for OCS sources in the State of New Jersey. The intended effect of approving the OCS requirements for the State of New Jersey is to regulate emissions from OCS sources in accordance with the requirements onshore. The requirements discussed below are incorporated by reference into the Code of Federal Regulations and are listed in the appendix to the OCS air regulations. DATES: Effective Date: This rule is effective on December 3, 2008. This incorporation by reference of certain publications listed in this rule is PO 00000 Frm 00029 Fmt 4700 Sfmt 4700 I. Background Information Throughout this document, the terms ‘‘we,’’ ‘‘us,’’ and ‘‘our’’ refer to the U.S. EPA. On September 4, 1992, EPA promulgated 40 CFR part 55,1 which established requirements to control air pollution from OCS sources in order to attain and maintain Federal and State ambient air quality standards (AAQS) and to comply with the provisions of part C of title I of the CAA. Part 55 applies to all OCS sources offshore of the States except those located in the Gulf of Mexico west of 87.5 degrees longitude. On July 7, 2008 (73 FR 38356), EPA proposed to approve requirements into 1 The reader may refer to the Notice of Proposed Rulemaking, December 5, 1991 (56 FR 63774), and the preamble to the final rule promulgated September 4, 1992 (57 FR 40792) for further background and information on the OCS regulations. E:\FR\FM\03NOR1.SGM 03NOR1

Agencies

[Federal Register Volume 73, Number 213 (Monday, November 3, 2008)]
[Rules and Regulations]
[Pages 65260-65269]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-26176]


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DEPARTMENT OF VETERANS AFFAIRS

38 CFR Part 21

RIN 2900-AM45


Increase in Rates Payable Under the Montgomery GI Bill--Active 
Duty and Other Miscellaneous Issues

AGENCY: Department of Veterans Affairs.

ACTION: Final rule.

-----------------------------------------------------------------------

SUMMARY: This document amends regulations governing education programs 
the Department of Veterans Affairs (VA) administers. In accordance with 
statutory requirements and previously established formulas, it amends 
the regulations to show increases in the monthly rates of basic 
educational assistance payable under the Montgomery GI Bill--Active 
Duty program, an increase in the percentage

[[Page 65261]]

payable to veterans pursuing apprenticeship or other on-job training, 
and a change in the formula used to calculate the entitlement charge 
for individuals pursuing apprenticeship or other on-job training. It 
also amends procedural provisions and delegations of authority 
regarding continuation of payments during emergency school closings. 
Furthermore, this document makes nonsubstantive technical changes for 
purposes of clarity and to remove obsolete provisions.

DATES: Effective Date: This final rule is effective November 3, 2008.
    Applicability Dates: Certain amendments in this final rule are 
applied retroactively to conform to statutory requirements. For more 
information concerning the dates of applicability, see the 
SUPPLEMENTARY INFORMATION section of this document.

FOR FURTHER INFORMATION CONTACT: Brandye R. Terrell, Regulation 
Development Team Leader, Education Service (225C), Veterans Benefits 
Administration, Department of Veterans Affairs, 810 Vermont Avenue, 
NW., Washington, DC 20420, telephone (202) 461-9822.

SUPPLEMENTARY INFORMATION:

I. Increase in Montgomery GI Bill--Active Duty Program Monthly Rates

    This document reflects changes made under a formula mandated by 38 
U.S.C. 3015(h). Under this formula, the full-time rates of basic 
educational assistance payable to students under the Montgomery GI 
Bill--Active Duty (MGIB) program were required to be increased by the 
percentage by which the total monthly Consumer Price Index--W, for the 
12-month period ending on June 30th preceding the fiscal year during 
which the increase is applicable, exceeds the Consumer Price Index--W 
for the 12-month period ending on June 30th preceding the previous 
fiscal year. Using this formula, VA calculated a 3 percent increase for 
fiscal year (FY) 2006 (October 1, 2005, through September 30, 2006), a 
4 percent increase for FY 2007 (October 1, 2006, through September 30, 
2007), and a 2.5 percent increase for the period in FY 2008 prior to 
August 1, 2008 (October 1, 2007, through July 31, 2008), the effective 
date of section 5004 of Public Law 110-252 (122 Stat. 2379). The full-
time basic educational assistance rates in this document reflect 
increases in accordance with the aforementioned statutory formula.
    It should be noted that the aforementioned increases do not affect 
all educational assistance payable under the MGIB. The increases apply 
only to the basic educational assistance rate. The increases do not 
apply to additional amounts payable by the Secretary of Defense to 
individuals with skills or a specialty in which there is a critical 
shortage of personnel (also known as ``kickers''). Also, veterans who 
previously had eligibility under the Veterans' Educational Assistance 
Program (Vietnam Era GI Bill) receive monthly payments that are in part 
based upon basic educational assistance and in part based upon the 
rates payable under the Vietnam Era GI Bill. Only that portion 
attributable to basic educational assistance is increased. In addition, 
the increases do not apply to additional amounts payable for 
dependents.
    The provisions of 38 U.S.C. 3015(a) and (b) require that VA pay 
part-time students at appropriately reduced rates. Since the first 
student became eligible for assistance under the MGIB in 1985, VA has 
paid three-quarter-time students and one-half-time students at 75 
percent and 50 percent of the full-time institutional rate, 
respectively. Students pursuing a program of education at less than 
one-half but more than one-quarter time have had their payments limited 
to the prorated amount of tuition and fees not to exceed 50 percent of 
the full-time institutional rate. Similarly, students pursuing a 
program of education at one-quarter time or less have had their 
payments limited to the prorated amount of tuition and fees not to 
exceed 25 percent of the full-time institutional rate. Changes are made 
consistent with the authority and formula described in this paragraph.
    The changes in Sec. Sec.  21.7136 and 21.7137 in the MGIB monthly 
rates are applied retroactively to conform to statutory requirements, 
in accordance with the applicable statutory provisions discussed above. 
VA began paying the increased rates for FY 2006, FY 2007, and FY 2008 
through July 31, 2008, effective for training pursued on or after 
October 1, 2005, October 1, 2006, and October 1, 2007, through July 31, 
2008, respectively.

II. Increase in the Percentage Payable and Modification of the Formula 
Used To Calculate Entitlement Charge for Veterans Pursuing 
Apprenticeship or Other On-Job Training

    The provisions of 38 U.S.C. 3032(c) require that veterans pursuing 
a full-time program of apprenticeship or other on-job training be paid 
a percentage of the basic educational assistance full-time monthly 
rate. Benefits for the first six months of training, the second six 
months of training, and the remainder of the program, are ordinarily 
payable under section 3032 at 75 percent, 55 percent, and 35 percent, 
respectively. However, the Veterans Benefits Improvement Act of 2004 
(Pub. L. 108-454) temporarily increased the percentages payable for 
apprenticeship and other on-job training from 75 percent, 55 percent, 
and 35 percent to 85 percent, 65 percent, and 45 percent, respectively, 
after September 30, 2005, and before January 1, 2008. This final rule 
makes changes in Sec. Sec.  21.7136(b)(2)(i) through (b)(2)(iii), 
(c)(2)(i) through (c)(2)(iii), (d)(4) through (d)(6), (f)(4), and 
(h)(2), and 21.7137(a)(2), consistent with the authority and formula 
described in this paragraph.
    The Veterans Benefits Improvement Act of 2004 also modified the 
formula used to calculate entitlement charges for certain 
apprenticeship and other on-job trainees. Prior to October 1, 2005, 
veterans with 38 U.S.C. chapter 34 entitlement were charged a month of 
entitlement for each month they received educational assistance. The 
entitlement charge was based on the length of training rather than the 
amount received for training. The Veterans Benefits Improvement Act of 
2004 mandated that chapter 34 entitlement charged for training pursued 
on or after October 1, 2005, be reduced proportionately by the 
percentage rate (rounded to the nearest percentage) determined by 
dividing the amount of the training assistance paid for the month by 
the monthly educational assistance payable for full-time enrollment in 
an educational institution. This final rule makes changes in Sec.  
21.7076(b)(4) consistent with the authority and formula described in 
this paragraph, applicable to training pursued on or after October 1, 
2005.
    VA began paying the increased percentages for veterans pursuing 
apprenticeship and other on-job training and using the aforementioned 
formula to calculate entitlement charge for training pursued on or 
after October 1, 2005, in accordance with the statutory provisions 
listed above.
    This final rule also makes nonsubstantive changes in the 38 U.S.C. 
chapter 34 entitlement provisions intended to clarify that entitlement 
charges are charges for record purposes and not monetary charges.

[[Page 65262]]

III. Changes in Sec.  21.4138 To Amend Delegations of Authority, 
Reflect Current Agency Organization, and Make Clarifying Changes; 
Authority for Continuation of Payment of Educational Assistance During 
Temporary School Closings

    Our regulations prior to the changes made by this document granted 
the Director of the VA facility of jurisdiction for a school or schools 
affected by an emergency situation the authority to determine, applying 
the standards under Sec.  21.4138(f), whether educational assistance is 
payable for breaks, including intervals between terms. In this 
document, we are amending those and other provisions in Sec.  21.4138, 
Certifications and release of payments, to make changes in delegations 
of authority, reflect current agency organization, and make clarifying 
changes. Among the changes to reflect current agency organization, we 
use in Sec.  21.4138(f) and in this preamble the term ``VA Regional 
Processing Office of jurisdiction'' rather than ``VA facility of 
jurisdiction''. Among the clarifying changes in Sec.  21.4138(f), we 
change its heading to ``Payments for intervals and temporary school 
closings'' to better reflect its scope and similarly make changes in 
the text of Sec.  21.4138(f) to better reflect the scope of its 
provisions, define interval, reorganize its provisions, and add 
headings within Sec.  21.4138(f).
    When hurricanes cause emergency school closings in the jurisdiction 
of more than one VA Regional Processing Office, it is possible for the 
director of each VA Regional Processing Office to make a different 
decision as to continuation of payments. In order to provide prompt and 
consistent emergency instructions to all offices, we are amending Sec.  
21.4138(f) to elevate to the Director, Education Service, VA Central 
Office, the authority to determine whether to continue payments during 
school closings when the reasons for the closings cause schools under 
the jurisdiction of more than one VA Regional Processing Office to 
close. The Director of the VA Regional Processing Office of 
jurisdiction will retain the authority to determine if payments may be 
continued for school closings that only affect schools within that 
Director's jurisdiction. The regulations do not authorize payment if in 
the judgment of the Director with jurisdiction the school closing will 
not be temporary.
    Under current Sec.  21.4138(f), the Director of the VA Regional 
Processing Office of jurisdiction has authority to continue payments 
during a temporary closing caused by a strike by the faculty or staff 
of a school that does not exceed 30 days. After that authorization for 
payment, the Director, Education Service, has authority to determine 
whether to continue payments if the closing lasts more than 30 days. We 
are amending Sec.  21.4138(f) to clarify that their respective 
authority to continue payments during a strike that results in a school 
closure applies regardless of whether or not the school's faculty or 
staff are on strike.
    If a school disagrees with a determination of whether to authorize 
payments for the period of a school closure, an opportunity for a 
review by the Director, Education Service, is provided by current Sec.  
21.4138(f)(2)(i)(B). Our amendments to Sec.  21.4138 add, in Sec.  
21.4138(f)(6)(ii), a delegation of authority to the Under Secretary for 
Benefits to review initial decisions as to continuation of payments 
made by the Director, Education Service.

IV. Miscellaneous Nonsubstantive Technical Changes for Purposes of 
Clarity and To Remove Obsolete Provisions

    In 1996, VA amended 38 CFR 21.7136 by renumbering paragraphs (a) 
through (e) as paragraphs (b) through (f), respectively. The amendments 
to Sec.  21.7136 were published February 22, 1996, in the Federal 
Register (61 FR 6780, 6788-6789). In that final rule, we neglected to 
update the references within newly-redesignated paragraph (f) from 
paragraph (e) to (f). We are amending Sec.  21.7136(f) in this document 
to update the incorrect reference citations.
    In 1996, VA removed 38 CFR 21.4205 governing absences, in a final 
rule published May 24, 1996, in the Federal Register (61 FR 26107-
26117). In that final rule, we neglected to remove the references to 
Sec.  21.4205 in Sec. Sec.  21.4200(o) and 21.7140(d). This rule 
updates those two paragraphs as needed to reflect changes in our 
regulations.
    In 2000, VA amended 38 CFR 21.7045, adding paragraph (d). The final 
rule was published February 7, 2000, in the Federal Register (65 FR 
5785-5788). In that final rule, we neglected to update the introductory 
paragraph of Sec.  21.7136(f) to include a reference to Sec.  
21.7045(d), which concerns alternative eligibility requirements for 
persons with eligibility under 38 U.S.C. chapter 32 to qualify for 
eligibility under 38 U.S.C. chapter 30. In 2003, we amended Sec.  
21.7045 to add paragraph (e), which includes additional alternative 
eligibility requirements for persons eligible under 38 U.S.C chapter 32 
to qualify for eligibility under 38 U.S.C. chapter 30. That final rule 
was published June 9, 2003, in the Federal Register (68 FR 34326-
34332). In that final rule, we updated the introductory paragraph of 
Sec.  21.7136(f) to add a reference to Sec.  21.7045(e)(2), but we 
should have referred also to Sec.  21.7045(d) and all of paragraph (e). 
This document makes that necessary amendment to the introductory 
paragraph of Sec.  21.7136(f).
    In the same 2003 final rule, we amended 38 CFR 21.4138(f), 
``Payment for intervals between terms.'' The SUPPLEMENTARY INFORMATION 
section of that final rule stated that changes made in that rule to 
Sec.  21.4138(f) are applicable to MGIB, Survivors' and Dependents' 
Educational Assistance Program, Veterans Educational Assistance 
Program, and Montgomery GI Bill--Selected Reserve benefits and said 
that it would be applicable to the MGIB under Sec.  21.7140 (66 FR at 
34327). In that final rule, we neglected to amend Sec.  21.7140. 
Changes were needed to assure that the amended provisions in Sec.  
21.4138(f) would be clearly applicable to MGIB benefits. This document 
amends Sec.  21.7140(d) for purposes of clarity, to remove redundant 
provisions, to conform with Sec.  21.4138(f) and, as we discuss above 
with respect to its obsolete citation of Sec.  21.4205, to reflect 
changes in our regulations.
    In 2006, VA amended Sec.  21.7139, in a final rule published 
December 18, 2006, in the Federal Register (71 FR 75672, 74678-75679). 
We erroneously referred in Sec.  21.7139(f)(I)(i) to Sec.  
21.7136(b)(5) through (b)(8) and (c)(5) through (c)(8) and to Sec.  
21.7137(a)(5) through (a)(8), which our regulations did not then 
contain. We had intended instead to refer to Sec.  21.7136(b)(2) and 
(c)(2) and to Sec.  21.7137(a)(2). This document revises Sec.  
21.7139(f)(1)(i) to reflect the appropriate cross-references in 
conformance with this document's changes to Sec. Sec.  21.7136 and 
21.7137. Those are the same references that have been appropriate since 
December 18, 2006.

Administrative Procedure Act

    The changes made by this final rule merely are procedural rules, 
interpretive rules, nonsubstantive changes, or matters of agency 
organization and management, or they reflect statutory requirements and 
adjustments made based on previously established formulas. These 
changes are exempt from the notice-and-comment and delayed-effective-
date requirements of 5 U.S.C. 553(b) and (d).

Executive Order 12866

    Executive Order 12866 directs agencies to assess all costs and 
benefits

[[Page 65263]]

of available regulatory alternatives and, when regulation is necessary, 
to select regulatory approaches that maximize net benefits (including 
potential economic, environmental, public health and safety, and other 
advantages; distributive impacts; and equity). The Executive Order 
classifies a regulatory action as a ``significant regulatory action,'' 
requiring review by the Office of Management and Budget (OMB) unless 
OMB waives such review, if it is a regulatory action that is likely to 
result in a rule that may: (1) Have an annual effect on the economy of 
$100 million or more or adversely affect in a material way the economy, 
a sector of the economy, productivity, competition, jobs, the 
environment, public health or safety, or State, local, or tribal 
governments or communities; (2) create a serious inconsistency or 
otherwise interfere with an action taken or planned by another agency; 
(3) materially alter the budgetary impact of entitlements, grants, user 
fees, or loan programs or the rights and obligations of recipients 
thereof; or (4) raise novel legal or policy issues arising out of legal 
mandates, the President's priorities, or the principles set forth in 
the Executive Order.
    The economic, interagency, budgetary, legal, and policy 
implications of this final rule have been examined and it has been 
determined not to be a significant regulatory action under Executive 
Order 12866.

Paperwork Reduction Act of 1995

    This document contains no provisions constituting a collection of 
information under the Paperwork Reduction Act of 1995 (44 U.S.C. 3501-
3521). In 38 CFR 21.4138(f)(6), there are provisions for a school 
disagreeing with VA's decision as to continuation of payments of 
educational assistance for periods of emergency closings to request an 
administrative review in writing. However, those provisions do not 
constitute a collection of information under the Act because they 
concern information collected from fewer than 10 persons annually. VA 
has received no such requests since at least 1993.

Regulatory Flexibility Act

    The initial and final regulatory flexibility analyses requirements 
of sections 603 and 604 of the Regulatory Flexibility Act, 5 U.S.C. 
601-612, are not applicable to this rule, because a notice of proposed 
rulemaking is not required for this rule. Even so, the Secretary of 
Veterans Affairs hereby certifies that this final rule will not have a 
significant economic impact on a substantial number of small entities 
as they are defined in the Regulatory Flexibility Act. While some of 
its provisions in Sec.  21.4138(f)(6) as to emergency school closings 
may affect small entities, any effect on small entities would be 
minuscule. Therefore, this final rule is also exempt pursuant to 5 
U.S.C. 605(b) from the initial and final regulatory flexibility 
analyses requirements of sections 603 and 604.

Unfunded Mandates

    The Unfunded Mandates Reform Act of 1995 requires, at 2 U.S.C. 
1532, that agencies prepare an assessment of anticipated costs and 
benefits before issuing any rule that may result in the expenditure by 
State, local, and tribal governments, in the aggregate, or by the 
private sector, of $100 million or more (adjusted annually for 
inflation) in any year. This final rule would have no such effect on 
State, local, and tribal governments, or on the private sector.

Catalog of Federal Domestic Assistance

    The Catalog of Federal Domestic Assistance numbers and titles for 
the programs affected by this final rule are 64.117, Survivors and 
Dependents Educational Assistance; 64.120, Post-Vietnam Era Veterans' 
Educational Assistance; and 64.124, All-Volunteer Force Educational 
Assistance. This final rule also affects the Montgomery GI Bill--
Selective Reserve program, for which there is no Catalog of Federal 
Domestic Assistance program number.

List of Subjects in 38 CFR Part 21

    Administrative practice and procedure, Armed forces, Civil rights, 
Claims, Colleges and universities, Conflict of interests, Education, 
Employment, Grant programs--education, Grant programs--veterans, Health 
care, Loan programs--education, Loan programs--veterans, Manpower 
training programs, Reporting and recordkeeping requirements, Schools, 
Travel and transportation expenses, Veterans, Vocational education, 
Vocational rehabilitation.

    Approved: October 27, 2008.
Gordon H. Mansfield,
Deputy Secretary of Veterans Affairs.

0
For the reasons stated above, the Department of Veterans Affairs amends 
38 CFR part 21 (subparts D, K, and L) as follows:

PART 21--VOCATIONAL REHABILITATION AND EDUCATION

Subpart D--Administration of Educational Assistance Programs

0
1. Revise the authority citation for part 21, subpart D to read as 
follows:

    Authority: 10 U.S.C. 2141 note, ch. 1606; 38 U.S.C. 501(a), chs. 
30, 32, 34, 35, 36, and as noted in specific sections.


0
2. Amend Sec.  21.4138 by:
0
a. Adding introductory text.
0
b. In paragraph (a)(1)(iv), removing ``field facility'' and adding, in 
its place, ``Regional Processing Office''.
0
c. In paragraph (a)(4) introductory text, removing ``field station'' 
and adding, in its place, ``Regional Processing Office''.
0
d. Revising paragraph (f).
    The addition and revision read as follows:


Sec.  21.4138  Certifications and release of payments.

    For the purposes of this section, the Manila Regional Office is 
considered the VA Regional Processing Office of jurisdiction for 
educational assistance allowance claims processed under 38 U.S.C. 
chapter 35 for educational institutions located in the Philippines.
* * * * *
    (f) Payment for intervals and temporary school closings. VA may 
authorize payment for an interval or for a temporary school closing 
that occurs within a certified enrollment period. If a school closing 
that is or may be temporary occurs during an interval, VA will apply 
any applicable provisions in paragraphs (f)(1) through (f)(5) of this 
section concerning intervals and in paragraph (f)(6) of this section 
concerning temporary school closings. For the purposes of this 
paragraph, interval means a period without instruction between 
consecutive school terms, quarters, or semesters or a period without 
instruction between a summer term and a term, quarter, or semester. 
(See definitions of divisions of the school year in Sec.  21.4200(b).)
    (1) Payment for intervals. In determining whether a student will be 
paid for an interval, VA will first review the provisions of paragraph 
(f)(2) of this section. If none of the provisions apply, VA will review 
the provisions of paragraphs (f)(3), (f)(4), and (f)(5) of this section 
to determine if payments may be made for the interval. In determining 
the length of a summer term, VA will disregard a fraction of a week 
consisting of 3 days or less, and will consider 4 days or more to be a 
full week.
    (2) Restrictions on payment for intervals. VA will make no payment 
for an interval if:
    (i) The student is training at less than the half-time rate on the 
last day of training during the term, quarter, semester, or summer term 
preceding the interval;
    (ii) The student is on active duty;

[[Page 65264]]

    (iii) The student requests, prior to authorization of an award or 
prior to negotiating the check, that no benefits be paid for the 
interval period;
    (iv) The student's entitlement applicable to such payment will be 
exhausted by receipt of such payment, and it is to the advantage of the 
student not to receive payment;
    (v) The interval occurs between school years at a school that is 
not organized on a term, quarter, or semester basis,
    (vi) The student withdraws from all courses in the term, quarter, 
semester, or summer session preceding the interval, or discontinues 
training before the scheduled start of an interval in a school not 
organized on a term, quarter, or semester basis; or
    (vii) The student receives an accelerated payment for the term, 
quarter, semester, or summer session preceding the interval.
    (3) Payment for interval between periods of enrollment at different 
schools. If the student transfers from one approved school for the 
purpose of enrolling in and pursuing a similar course at the second 
school, VA may make payments for an interval that does not exceed 30 
days. If the student does not enroll in a similar course at the second 
school, VA may not make payments for the interval.
    (4) Payment for intervals that occur at the same school. (i) If the 
student remains enrolled at the same school, VA may make payment for an 
interval which does not exceed 8 weeks and which occurs between:
    (A) Semesters or quarters,
    (B) A semester or quarter and a term that is at least as long as 
the interval,
    (C) A semester or quarter and a summer term that is at least as 
long as the interval,
    (D) Consecutive terms (other than semesters or quarters) provided 
that both terms are at least as long as the interval, or
    (E) A term and summer term provided that both the term and the 
summer term are at least as long as the interval.
    (ii) If the student remains enrolled at the same school, VA may 
make payment for an interval that does not exceed 30 days and that 
occurs between summer sessions within a summer term.

(Authority: 38 U.S.C. 3680)


    (5) Payment for intervals that occur between overlapping 
enrollments. (i) If a student is enrolled in overlapping enrollment 
periods whether before or after an interval (either at the same or 
different schools), VA will determine whether the student is entitled 
to payment for the interval between the overlapping enrollment periods, 
and what dates the interval and enrollment periods will be considered 
to begin and end, as follows:
    (A) By treating the ending date of each enrollment period as though 
it were the student's last date of training before the interval,
    (B) By treating the beginning date of each enrollment period as 
though it were the student's first date of training after the interval,
    (C) By examining the interval payment that would be made to the 
student on the basis of the various combinations of beginning and 
ending dates, and
    (D) By choosing the ending date and beginning date that result in 
the highest payment rate as the start and finish of the interval for VA 
measurement purposes.
    (ii) VA will not reduce the interval rate of payment as a result of 
training the student may take during the interval, but VA will increase 
the interval rate of payment if warranted by such training.

(Authority: 38 U.S.C. 3680(a))


    (6) Payment for temporary school closings. VA may authorize payment 
for temporary school closings that are due to emergencies (including 
strikes) or established policy based upon an Executive Order of the 
President. If a school closing that is or may be temporary occurs in 
whole or in part during an interval, VA will first review the 
provisions of paragraphs (f)(2) through (f)(5) of this section to 
determine if payment may be continued during the interval.
    (i) If payment would not be inconsistent with the provisions of 
paragraphs (f)(2) through (f)(5) of this section, a determination to 
authorize payment for a period of a temporary school closing, or to not 
authorize payment if, in the judgment of the VA official specified in 
this paragraph, either the school closing will not be temporary or 
payment would not otherwise be in accord with this section, or both, 
will be made by:
    (A) The Director of the VA Regional Processing Office of 
jurisdiction if:
    (1) The reason for the school closing does not result in the 
closing of a school or schools in the jurisdiction of the Director of 
another VA Regional Processing Office, and
    (2) If the reason for the closing is a strike, the strike has 
lasted 30 days or less and is not anticipated to last more than 30 
days.
    (B) The Director, Education Service if:
    (1) The reason for the school closing results in the closing of 
schools in the jurisdiction of more than one Director of a VA Regional 
Processing Office, or
    (2) The reason for the closing is a strike and the strike lasts, or 
is anticipated to last, more than 30 days.
    (ii) A school that disagrees with a decision made under paragraph 
(f)(6) of this section may request an administrative review. The review 
request must be submitted in writing and received by the Director of 
the VA Regional Processing Office of jurisdiction within one year of 
the date of VA's letter notifying the school of the decision. A review 
of the decision will include the evidence of record and any other 
pertinent evidence the school may wish to submit. The affirmation or 
reversal of the initial decision based on an administrative review is 
final. The review will be conducted by the--
    (A) Director, Education Service, if the Director of the VA Regional 
Processing Office of jurisdiction made the initial decision to continue 
or discontinue payments.
    (B) Under Secretary for Benefits, if the Director, Education 
Service, made the initial decision to continue or discontinue payments.

(Authority: 38 U.S.C. 512, 3680(a))

* * * * *


Sec.  21.4200  [Amended]

0
3. Amend Sec.  21.4200(o)(2) by removing ``under Sec.  21.4205 for 
payment during a holiday vacation'' and adding, in its place, ``for 
payment but whose work is interrupted by a holiday vacation as defined 
in Sec.  21.7020(b)(16),''.

Subpart K--All Volunteer Force Educational Assistance Program 
(Montgomery GI Bill--Active Duty)

0
4. Revise the authority citation for part 21, subpart K, to read as 
follows:

    Authority: 38 U.S.C. 501(a), chs. 30, 36, and as noted in 
specific sections.

0
5. Amend Sec.  21.7076 by:
0
a. In paragraph (b)(3) introductory text, adding ``38 U.S.C.'' 
immediately preceding ``chapter 30''.
0
b. Revising paragraph (b)(4).
    The revision reads as follows:


Sec.  21.7076  Entitlement charges.

* * * * *
    (b) * * *
    (4) For each month that a veteran is paid a monthly educational 
assistance allowance while undergoing apprenticeship or other on-job 
training, including any month in which the veteran fails to complete 
120 hours of training, VA will make a record-purpose charge against 38 
U.S.C. chapter 34 entitlement, if any, as follows:

[[Page 65265]]

    (i) For training that occurs before October 1, 2005, VA will reduce 
38 U.S.C. chapter 34 entitlement by one month for each month of 
benefits paid.
    (ii) For training that occurs on or after October 1, 2005, VA will 
reduce 38 U.S.C. chapter 34 entitlement proportionately based on the 
percentage rate (rounded to the nearest percentage) determined by 
dividing the amount of the training assistance paid for the month by 
the monthly educational assistance payable for full-time enrollment in 
an educational institution.

(Authority: 38 U.S.C. 3015(e), 3032(c), 3687; sec. 102, Pub. L. 108-
454, 118 Stat. 3600)

* * * * *

0
6. Amend Sec.  21.7136 by:
0
a. Revising paragraphs (b), (c)(1), (c)(2), (c)(3), (d)(4), (d)(5), 
(d)(6), (f)(4), and (h)(2); and revising the authority citation 
immediately following paragraph (h)(3).
0
b. In paragraph (f) introductory text, removing ``or (e)(2)'' and 
adding, in its place, ``(d), or (e)''.
0
c. In paragraph (f)(2), removing ``(e)(2)(i)'' each place that it 
appears, and adding, in its place, ``(f)(2)(i)'' and in paragraph 
(f)(2)(i) removing ``(e)(1)'' and adding, in its place ``(f)(1)''.
0
d. In paragraph (f)(3), removing ``(e)(2)(i)'' and adding, in its 
place, ``(f)(2)(i)''.
    The revisions read as follows:


Sec.  21.7136  Rates of payment of basic educational assistance.

* * * * *
    (b) Rates. (1) Except as elsewhere provided in this section or in 
Sec.  21.7139, basic educational assistance is payable to a veteran 
whose service is described in paragraph (a) of this section at the 
following monthly rates:
    (i) For training that occurs after September 30, 2005, and before 
October 1, 2006:

------------------------------------------------------------------------
                                                               Monthly
                          Training                               rate
------------------------------------------------------------------------
Full time..................................................     $1034.00
\3/4\ time.................................................       775.50
\1/2\ time.................................................       517.00
Less than \1/2\ but more than \1/4\ time...................       517.00
\1/4\ time.................................................       258.50
------------------------------------------------------------------------


(Authority: 38 U.S.C. 3015)


    (ii) For training that occurs after September 30, 2006, and before 
October 1, 2007:

------------------------------------------------------------------------
                                                               Monthly
                          Training                               rate
------------------------------------------------------------------------
Full time..................................................     $1075.00
\3/4\ time.................................................       806.25
\1/2\ time.................................................       537.50
Less than \1/2\ but more than \1/4\ time...................       537.50
\1/4\ time.................................................       268.75
------------------------------------------------------------------------


(Authority: 38 U.S.C. 3015)


    (iii) For training that occurs after September 30, 2007, and before 
August 1, 2008:

------------------------------------------------------------------------
                                                               Monthly
                          Training                               rate
------------------------------------------------------------------------
Full time..................................................     $1101.00
\3/4\ time.................................................       825.75
\1/2\ time.................................................       550.50
Less than \1/2\ but more than \1/4\ time...................       550.50
\1/4\ time.................................................       275.25
------------------------------------------------------------------------


(Authority: 38 U.S.C. 3015)


    (2) If a veteran's service is described in paragraph (a) of this 
section, basic educational assistance is payable to the veteran for 
pursuit of apprenticeship or other on-job training at the following 
monthly rates:
    (i) For training that occurs after September 30, 2005, and before 
October 1, 2006:

------------------------------------------------------------------------
                                                                Monthly
                       Training period                           rate
------------------------------------------------------------------------
First six months of training................................     $878.90
Second six months of training...............................      672.10
Remaining pursuit of training...............................      465.30
------------------------------------------------------------------------


(Authority: 38 U.S.C. 3015, 3032(c))


    (ii) For training that occurs after September 30, 2006, and before 
October 1, 2007:

------------------------------------------------------------------------
                                                                Monthly
                       Training period                           rate
------------------------------------------------------------------------
First six months of training................................     $913.75
Second six months of training...............................      698.75
Remaining pursuit of training...............................      483.75
------------------------------------------------------------------------


(Authority: 38 U.S.C. 3015, 3032(c))


    (iii) For training that occurs after September 30, 2007, and before 
January 1, 2008:

------------------------------------------------------------------------
                                                                Monthly
                       Training period                           rate
------------------------------------------------------------------------
First six months of training................................     $935.85
Second six months of training...............................      715.65
Remaining pursuit of training...............................      495.45
------------------------------------------------------------------------


(Authority: 38 U.S.C. 3015, 3032(c))


    (iv) For training that occurs after December 31, 2007, and before 
August 1, 2008:

------------------------------------------------------------------------
                                                                Monthly
                       Training period                           rate
------------------------------------------------------------------------
First six months of training................................     $825.75
Second six months of training...............................      605.55
Remaining pursuit of training...............................      385.35
------------------------------------------------------------------------


(Authority: 38 U.S.C. 3015, 3032(c))


    (3) If a veteran's service is described in paragraph (a) of this 
section, the monthly rate of basic educational assistance payable to 
the veteran for pursuit of a cooperative course is--
    (i) $1034.00 for training that occurs after September 30, 2005, and 
before October 1, 2006;
    (ii) $1075.00 for training that occurs after September 30, 2006, 
and before October 1, 2007; and
    (iii) $1101.00 for training that occurs after September 30, 2007, 
and before August 1, 2008.

(Authority: 38 U.S.C. 3015)


    (c) * * *
    (1) Except as elsewhere provided in this section or in Sec.  
21.7139, basic educational assistance is payable to a veteran at the 
following monthly rates:
    (i) For training that occurs after September 30, 2005, and before 
October 1, 2006:

------------------------------------------------------------------------
                                                                Monthly
                       Training period                           rate
------------------------------------------------------------------------
Full time...................................................     $840.00
\3/4\ time..................................................      630.00
\1/2\ time..................................................      420.00
Less than \1/2\ but more than \1/4\ time....................      420.00
\1/4\ time or less..........................................      210.00
------------------------------------------------------------------------


(Authority: 38 U.S.C. 3015)


    (ii) For training that occurs after September 30, 2006, and before 
October 1, 2007:

------------------------------------------------------------------------
                                                                Monthly
                       Training period                           rate
------------------------------------------------------------------------
Full time...................................................     $873.00
\3/4\ time..................................................      654.75
\1/2\ time..................................................      436.50
Less than \1/2\ but more than \1/4\ time....................      436.50
\1/4\ time or less..........................................      218.25
------------------------------------------------------------------------


(Authority: 38 U.S.C. 3015)


    (iii) For training that occurs after September 30, 2007, and before 
August 1, 2008:

------------------------------------------------------------------------
                                                                Monthly
                       Training period                           rate
------------------------------------------------------------------------
Full time...................................................     $894.00
\3/4\ time..................................................      670.50
\1/2\ time..................................................      447.00
Less than \1/2\ but more than \1/4\ time....................      447.00

[[Page 65266]]

 
\1/4\ time or less..........................................      223.50
------------------------------------------------------------------------


(Authority: 38 U.S.C. 3015)


    (2) Basic educational assistance is payable to a veteran for 
pursuit of apprenticeship or other on-job training at the following 
monthly rates:
    (i) For training that occurs after September 30, 2005, and before 
October 1, 2006:

------------------------------------------------------------------------
                                                                Monthly
                       Training period                           rate
------------------------------------------------------------------------
First six months of training................................     $714.00
Second six months of training...............................      546.00
Remaining pursuit of training...............................      378.00
------------------------------------------------------------------------


(Authority: 38 U.S.C. 3015, 3032(c))


    (ii) For training that occurs after September 30, 2006, and before 
October 1, 2007:

------------------------------------------------------------------------
                                                                Monthly
                       Training period                           rate
------------------------------------------------------------------------
First six months of training................................     $742.05
Second six months of training...............................      567.45
Remaining pursuit of training...............................      392.85
------------------------------------------------------------------------


(Authority: 38 U.S.C. 3015, 3032(c))


    (iii) For training that occurs after September 30, 2007, and before 
January 1, 2008:

------------------------------------------------------------------------
                                                                Monthly
                       Training period                           rate
------------------------------------------------------------------------
First six months of training................................     $759.90
Second six months of training...............................      581.10
Remaining pursuit of training...............................      402.30
------------------------------------------------------------------------


(Authority: 38 U.S.C. 3015, 3032(c))


    (iv) For training that occurs after December 31, 2007, and before 
August 1, 2008:

------------------------------------------------------------------------
                                                                Monthly
                       Training period                           rate
------------------------------------------------------------------------
First six months of training................................     $670.50
Second six months of training...............................      491.70
Remaining pursuit of training...............................      312.90
------------------------------------------------------------------------


(Authority: 38 U.S.C. 3015, 3032(c))


    (3) The monthly rate of basic educational assistance payable to a 
veteran for pursuit of a cooperative course is
    (i) $840.00 for training that occurs after September 30, 2005, and 
before October 1, 2006;
    (ii) $873.00 for training that occurs after September 30, 2006, and 
before October 1, 2007; and
    (iii) $894.00 for training that occurs after September 30, 2007, 
and before August 1, 2008.

(Authority: 38 U.S.C. 3015)

* * * * *
    (d) * * *
    (4) For individuals who first become members of the Armed Forces 
before November 29, 1989, and who are pursuing an apprenticeship or 
other on-job training, the increase may not exceed the rates shown 
below:
    (i) During the first 6 months of training the increase may not 
exceed $300 per month, except that during the period October 1, 2005, 
through December 31, 2007, for training that occurs during that period, 
the increase may not exceed $340 per month.
    (ii) During the second 6 months of training the increase may not 
exceed $220 per month, except that during the period October 1, 2005, 
through December 31, 2007, for training that occurs during that period, 
the increase may not exceed $260 per month.
    (iii) During the remaining months of training the increase may not 
exceed $140 per month, except that during the period October 1, 2005, 
through December 31, 2007, for training that occurs during that period, 
the increase may not exceed $180 per month.
    (5) For individuals who first become members of the Armed Forces 
during the period beginning November 29, 1989, and ending September 30, 
1998, and who are pursuing an apprenticeship or other on-job training, 
the increase may not exceed the rates shown below:
    (i) During the first 6 months of training the increase may not 
exceed $525 per month, except that during the period October 1, 2005, 
through December 31, 2007, for training that occurs during that period, 
the increase may not exceed $595 per month.
    (ii) During the second 6 months of training the increase may not 
exceed $385 per month, except that during the period October 1, 2005, 
through December 31, 2007, for training that occurs during that period, 
the increase may not exceed $455 per month.
    (iii) During the remaining months of training the increase may not 
exceed $245 per month, except that during the period October 1, 2005, 
through December 31, 2007, for training that occurs during that period, 
the increase may not exceed $315 per month.
    (6) For individuals who first become members of the Armed Forces 
after September 30, 1998, and who are pursuing apprenticeship or other 
on-job training, the increase may not exceed the rates shown below:
    (i) During the first 6 months of training the increase may not 
exceed $712.50 per month, except that during the period October 1, 
2005, through December 31, 2007, for training that occurs during that 
period, the increase may not exceed $807.50 per month.
    (ii) During the second 6 months of training the increase may not 
exceed $522.50 per month, except that during the period October 1, 
2005, through December 31, 2007, for training that occurs during that 
period, the increase may not exceed $617.50 per month.
    (iii) During the remaining months of training the increase may not 
exceed $332.50 per month, except that during the period October 1, 
2005, through December 31, 2007, for training that occurs during that 
period, the increase may not exceed $427.50 per month.

(Authority: 38 U.S.C. 3015, 3032; sec. 103, Pub. L. 108-454, 118 
Stat. 3600)

* * * * *
    (f) * * *
    (4) For a veteran pursuing a program of apprenticeship or other on-
job training--
    (i) During periods before October 1, 2005, and after December 31, 
2007, VA will multiply the monthly rate determined by paragraph 
(f)(2)(i) of this section--
    (A) By.75 for a veteran in the first six months of pursuit of 
training, (B) By.55 for a veteran in the second six months of pursuit 
of training, or
    (C) By.35 for a veteran in the remaining months of pursuit of 
training.
    (ii) During the period beginning October 1, 2005, and ending 
December 31, 2007, VA will multiply the monthly rate determined by 
paragraph (f)(2)(i) of this section--
    (A) By.85 for a veteran in the first six months of pursuit of 
training,
    (B) By.65 for a veteran in the second six months of pursuit of 
training, or
    (C) By.45 for a veteran in the remaining months of pursuit of 
training.

(Authority: 38 U.S.C. 3015(e); sec. 103, Pub. L. 108-454, 118 Stat. 
3600)

* * * * *
    (h) * * *
    (2) If a veteran is pursuing apprenticeship or other on-job 
training--
    (i) During periods before October 1, 2005, and after December 31, 
2007, VA will increase the veteran's monthly educational assistance 
that is otherwise payable--
    (A) During the first 6 months of pursuit of training, by $3.75 for 
every $20 the veteran contributed, (B) During the second 6 months of 
pursuit of training, by $2.75 for every $20 the veteran contributed, or
    (C) During the remaining months of the veteran's pursuit of 
training, by

[[Page 65267]]

$1.75 for every $20 the veteran contributed.
    (ii) During the period beginning October 1, 2005, and ending 
December 31, 2007, VA will increase the veteran's monthly educational 
assistance that is otherwise payable--
    (A) During the first 6 months of pursuit of training, by $4.25 for 
every $20 the veteran contributed,
    (B) During the second 6 months of pursuit of training, by $3.25 for 
every $20 the veteran contributed, or
    (C) During the remaining months of the veteran's pursuit of 
training, by $2.25 for every $20 the veteran contributed.
* * * * *
    (3) * * *

(Authority: 38 U.S.C. 3015(g); sec. 103, Pub. L. 108-454, 118 Stat. 
3600)

* * * * *

0
7. Amend Sec.  21.7137 by revising paragraphs (a) and (c) to read as 
follows:


Sec.  21.7137  Rates of payment of basic educational assistance for 
individuals with remaining entitlement under 38 U.S.C. chapter 34.

    (a) Minimum rates. (1) Except as elsewhere provided in this 
section, basic educational assistance is payable to individuals with 
remaining entitlement under 38 U.S.C. chapter 34 at the following 
monthly rates:
    (i) For training that occurs after September 30, 2005, and before 
October 1, 2006:

----------------------------------------------------------------------------------------------------------------
                                                                                 Monthly rate
                                                             ---------------------------------------------------
                                                                                                      Additional
                          Training                                 No          One          Two        for each
                                                               dependents   dependent    dependents   additional
                                                                                                      dependent
----------------------------------------------------------------------------------------------------------------
Full time...................................................     $1222.00     $1258.00     $1289.00       $16.00
\3/4\ time..................................................       917.00       943.50       967.00        12.00
\1/2\ time..................................................       611.00       629.00       644.50         8.50
Less than \1/2\ but more than \1/4\ time....................       611.00       611.00       611.00            0
\1/4\ time or less..........................................       305.50       305.50       305.50            0
----------------------------------------------------------------------------------------------------------------


(Authority: 38 U.S.C. 3015)

    (ii) For training that occurs after September 30, 2006, and before 
October 1, 2007:

----------------------------------------------------------------------------------------------------------------
                                                                                 Monthly rate
                                                             ---------------------------------------------------
                                                                                                      Additional
                          Training                                 No          One          Two        for each
                                                               dependents   dependent    dependents   additional
                                                                                                      dependent
----------------------------------------------------------------------------------------------------------------
Full time...................................................     $1263.00     $1299.00     $1330.00       $16.00
\3/4\ time..................................................       947.75       974.25       997.75        12.00
\1/2\ time..................................................       631.50       649.50       665.00         8.50
Less than \1/2\ but more than \1/4\ time....................       631.50       631.50       631.50            0
\1/4\ time or less..........................................       315.75       315.75       315.75            0
----------------------------------------------------------------------------------------------------------------


(Authority: 38 U.S.C. 3015)


    (iii) For training that occurs after September 30, 2007, and before 
August 1, 2008:

----------------------------------------------------------------------------------------------------------------
                                                                                 Monthly rate
                                                             ---------------------------------------------------
                                                                                                      Additional
                          Training                                 No          One          Two        for each
                                                               dependents   dependent    dependents   additional
                                                                                                      dependent
----------------------------------------------------------------------------------------------------------------
Full time...................................................     $1289.00     $1325.00     $1356.00       $16.00
\3/4\ time..................................................       967.25       993.75      1017.25        12.00
\1/2\ time..................................................       644.50       662.50       678.00         8.50
Less than \1/2\ but more than \1/4\ time....................       644.50       644.50       644.50            0
\1/4\ time or less..........................................       322.25       322.25       322.25            0
----------------------------------------------------------------------------------------------------------------


(Authority: 38 U.S.C. 3015)


    (2) For veterans pursuing apprenticeship or other on-job training, 
basic educational assistance is payable for training at the following 
monthly rates:
    (i) For training that occurs after September 30, 2005, and before 
October 1, 2006:

[[Page 65268]]



----------------------------------------------------------------------------------------------------------------
                                                                                 Monthly rate
                                                             ---------------------------------------------------
                                                                                                      Additional
                          Training                                 No          One          Two        for each
                                                               dependents   dependent    dependents   additional
                                                                                                      dependent
----------------------------------------------------------------------------------------------------------------
1st six months of pursuit of program........................      $995.35     $1009.38     $1021.70        $5.95
2nd six months of pursuit of program........................       738.73       749.78       758.88         4.55
3rd six months of pursuit of program........................       495.90       503.78       509.85         3.15
Remaining pursuit of program................................       480.60       488.03       494.78         3.15
----------------------------------------------------------------------------------------------------------------


(Authority: 38 U.S.C. 3015)


    (ii) For training that occurs after September 30, 2006, and before 
October 1, 2007:

----------------------------------------------------------------------------------------------------------------
                                                                                 Monthly rate
                                                             ---------------------------------------------------
                                                                                                      Additional
                          Training                                 No          One          Two        for each
                                                               dependents   dependent    dependents   additional
                                                                                                      dependent
----------------------------------------------------------------------------------------------------------------
1st six months of pursuit of program........................     $1030.20     $1044.23     $1056.55        $5.95
2nd six months of pursuit of program........................       765.38       776.43       785.53         4.55
3rd six months of pursuit of program........................       514.35       522.23       528.30         3.15
Remaining pursuit of program................................       499.05       506.48       513.23         3.15
----------------------------------------------------------------------------------------------------------------


(Authority: 38 U.S.C. 3015)


    (iii) For training that occurs after September 30, 2007 and before 
January 1, 2008:

----------------------------------------------------------------------------------------------------------------
                                                                                 Monthly rate
                                                             ---------------------------------------------------
                                                                                                      Additional
                          Training                                 No          One          Two        for each
                                                               dependents   dependent    dependents   additional
                                                                                                      dependent
----------------------------------------------------------------------------------------------------------------
1st six months of pursuit of program........................     $1052.30     $1066.33     $1078.65        $5.95
2nd six months of pursuit of program........................       782.28       793.33       802.43         4.55
3rd six months of pursuit of program........................       526.05       533.93       540.00         3.15
Remaining pursuit of program................................       510.75       518.18       524.93         3.15
----------------------------------------------------------------------------------------------------------------


(Authority: 38 U.S.C. 3015)


    (iv) For training that occurs after December 31, 2007, and before 
August 1, 2008:

----------------------------------------------------------------------------------------------------------------
                                                                                 Monthly rate
                                                             ---------------------------------------------------
                                                                                                      Additional
                          Training                                 No          One          Two        for each
                                                               dependents   dependent    dependents   additional
                                                                                                      dependent
----------------------------------------------------------------------------------------------------------------
1st six months of pursuit of program........................      $928.50      $940.88      $951.75        $5.25
2nd six months of pursuit of program........................       661.93       671.28       678.98         3.85
3rd six months of pursuit of program........................       409.15       415.28       420.00         2.45
Remaining pursuit of program................................       397.25       403.03       408.28         2.45
----------------------------------------------------------------------------------------------------------------


(Authority: 38 U.S.C. 3015)


    (3) The monthly rate of basic educational assistance payable to a 
veteran who is pursuing a cooperative course is the rate stated in the 
following tables:
    (i) For training that occurs after September 30, 2005, and before 
October 1, 2006:

------------------------------------------------------------------------
                              Monthly rate
-------------------------------------------------------------------------
                                                              Additional
                                          One         Two       for each
            No  dependents             dependent  dependents  additional
                                                               dependent
------------------------------------------------------------------------
$1222.00.............................   $1258.00    $1289.00      $16.00
------------------------------------------------------------------------


(Authority: 38 U.S.C. 3015)

    (ii) For training that occurs after September 30, 2006, and before 
October 1, 2007:

[[Page 65269]]



------------------------------------------------------------------------
                              Monthly rate
-------------------------------------------------------------------------
                                                              Additional
                                          One         Two      for each
            No  dependents             dependent  dependents  additional
                                                               dependent
------------------------------------------------------------------------
$1263.00.............................   $1299.00    $1330.00      $16.00
------------------------------------------------------------------------


(Authority: 38 U.S.C. 3015)


    (iii) For training that occurs after September 30, 2007, and before 
August 1, 2008:

------------------------------------------------------------------------
                              Monthly rate
-------------------------------------------------------------------------
                                                              Additional
                                          One         Two      for each
            No  dependents             dependent  dependents  additional
                                                               dependent
------------------------------------------------------------------------
$1289.00.............................   $1325.00    $1356.00      $16.00
------------------------------------------------------------------------


(Authority: 38 U.S.C. 3015)


* * * * *
    (c) Rates for servicemembers. Except as provided in paragraph (d) 
of this section, the monthly rate of basic educational assistance for a 
servicemember may not exceed the lesser of:
    (1) The monthly rate stated in paragraph (a) of this section; or
    (2) The monthly rate of the cost of the course. If there is no cost 
for the course, educational assistance is not payable.

(Authority: 38 U.S.C. 3015)

* * * * *

0
8. Amend Sec.  21.7139 by revising paragraph (f)(1)(i) to read as 
follows:


Sec.  21.7139  Conditions which result in reduced rates or no payment.

* * * * *
    (f) * * *
    (1) * * *
    (i) The rates specified in Sec. Sec.  21.7136(b)(2), (c)(2), (d)(4) 
through (d)(6), (f)(4), and (h)(2) and 21.7137(a)(2); and
* * * * *

0
9. Amend Sec.  21.7140 by revising paragraph (d) to read as follows:


Sec.  21.7140  Certifications and release of payments.

* * * * *
    (d) Payment for intervals and temporary school closings. In 
administering 38 U.S.C. chapter 30, VA will apply the provisions of 
Sec.  21.4138(f) when determining whether an individual is entitled to 
payment for an interval or temporary school closing.

(Authority: 38 U.S.C. 3034, 3680)

* * * * *

Subpart L--Educational Assistance for Members of the Selected 
Reserve

0
10. Revise the authority