Post-9/11 GI Bill, 78876-78910 [E8-29723]

Agencies

• DEPARTMENT OF VETERANS AFFAIRS

[Federal Register Volume 73, Number 247 (Tuesday, December 23, 2008)]
[Proposed Rules]
[Pages 78876-78910]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-29723]



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Part II





Department of Veterans Affairs





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38 CFR Part 21



Post-9/11 GI Bill; Proposed Rule

Federal Register / Vol. 73, No. 247 / Tuesday, December 23, 2008 / 
Proposed Rules

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DEPARTMENT OF VETERANS AFFAIRS

38 CFR Part 21

RIN 2900-AN10


Post-9/11 GI Bill

AGENCY: Department of Veterans Affairs.

ACTION: Proposed rule.

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SUMMARY: The Department of Veterans Affairs (VA) proposes to establish 
regulations regarding a new educational assistance program for 
individuals who serve on active duty after September 10, 2001. The new 
program, known as the Post-9/11 GI Bill, was authorized by title V of 
the Supplemental Appropriations Act, 2008 (Post-9/11 Veterans 
Educational Assistance Act of 2008). These proposed regulations are 
designed to implement the provisions of the Post-9/11 Veterans 
Educational Assistance Act of 2008 that govern the Post-9/11 GI Bill.

DATES: Comments must be received on or before January 22, 2009.

ADDRESSES: Written comments may be submitted through 
www.Regulations.gov; by mail or hand-delivery to the Director, 
Regulations Management (02REG), Department of Veterans Affairs, 810 
Vermont Ave., NW., Room 1068, Washington, DC 20420; or by fax to (202) 
273-9026. Comments should indicate that they are submitted in response 
to ``RIN 2900-AN10--Post-9/11 GI Bill.'' Copies of comments received 
will be available for public inspection in the Office of Regulation 
Policy and Management, Room 1063B, between the hours of 8 a.m. and 4:30 
p.m., Monday through Friday (except holidays). Please call (202) 461-
4902 for an appointment. (This is not a toll-free number.) In addition, 
during the comment period, comments may be viewed online at 
www.Regulations.gov through the Federal Docket Management System 
(FDMS).

FOR FURTHER INFORMATION CONTACT: Brandye R. Terrell, Regulation 
Development Team Leader (225C), Education Service, Veterans Benefits 
Administration, Department of Veterans Affairs, 810 Vermont Ave., NW., 
Washington, DC 20420. Telephone: (202) 461-9822. (This is not a toll-
free telephone number.)

SUPPLEMENTARY INFORMATION: 

I. Post-9/11 GI Bill

    This document proposes to amend VA's Vocational Rehabilitation and 
Education regulations in 38 CFR part 21 by adding a new subpart P and 
updating subparts B, C, D, G, K, and L to implement the provisions of 
the ``Post-9/11 Veterans Educational Assistance Act of 2008,'' Public 
Law 110-252, title V, which established a new educational assistance 
program. Many of the provisions of the new program, known as the 
``Post-9/11 GI Bill,'' are codified in chapter 33 of title 38, U.S.C. 
Chapter 33 provides guidance on the administration of the Post-9/11 GI 
Bill educational assistance program. The new program becomes effective 
on August 1, 2009. VA intends to use these proposed regulations to 
govern and administer educational assistance allowances payable under 
the Post-9/11 GI Bill. The following paragraphs provide a brief 
explanation of how each section of new chapter 33 affects the 
provisions of educational assistance under the Post-9/11 GI Bill, with 
references to the respective proposed rules concerned.

Section 3301. Definitions

    Section 3301 defines certain terms relevant to the Post-9/11 GI 
Bill. VA proposes to define active duty, advance payment, educational 
assistance, enrollment period, entry level or skill training, 
established charges, institution of higher learning, interval, lump sum 
payment, program of education, pursuit, and transferor based on statute 
or existing regulations for sections authorized under 38 U.S.C. 3323 to 
govern the administration of the program.
    The term ``academic year'' is used in section 3313 to set a period 
of time for which VA may pay the maximum book stipend of up to $1,000, 
and in section 3317 to set a period of time for which colleges and 
universities (who voluntarily agree to enter into an agreement with VA) 
must provide specific information. VA proposes to define academic year 
to mean a span of time of not more than 12 months during which the 
institution of higher learning offers periods of instruction and 
includes all divisions of the school year as defined in Sec.  
21.4200(b)(2) through (b)(5). If an institution of higher learning has 
an academic year lasting longer than 12 months, VA will consider the 
academic year for that institution to be August 1st of each calendar 
year through July 31st of the subsequent calendar year.
    ``Program of education'' as defined in 38 U.S.C. 3301 and 3452(b) 
includes any unit course or combination of courses or subjects pursued 
by an individual. In several sections of existing regulations governing 
the administration of other educational assistance programs, the terms 
``course'' and ``program of education'' have often been used 
synonymously. Using the terms interchangeably for purposes of 38 U.S.C. 
chapter 33 could be confusing to the reader. Section 3313 of title 38, 
U.S.C., provides a formula for determining entitlement charge. The 
formula includes the term ``course.'' The term, as used in this section 
is not interchangeable with program of education. The term ``course'' 
is also used in 38 U.S.C. 3314 governing payment of tutorial 
assistance. In this instance, the term ``course'' is specifically 
required to be part of an approved program of education. The use of the 
term ``course'' in these instances requires that VA clearly distinguish 
between course and program of education. VA proposes to define the term 
``course'' to mean a unit of instruction required for an approved 
program of education that provides the individual with the knowledge 
and skills necessary to meet the requirements of the selected 
educational objective.
    Section 3313 specifically excludes payment of the monthly housing 
allowance to individuals pursuing a program of education offered 
through distance learning. VA proposes to define the term ``distance 
learning'' to mean the pursuit of a program of education via distance 
education as codified in Department of Education statute 20 U.S.C. 
1003(6).
    Section 3313(f)(4) provides VA with a formula for calculating 
entitlement charge for eligible individuals pursuing training at half-
time or less. The formula requires that VA divide the number of course 
hours pursued by an individual by the number of course hours required 
to be full-time at the institution of higher learning. The result of 
the formula is a percentage that will be used to determine entitlement 
charge. As this formula is unique to the new program, VA proposes to 
use the term ``rate of pursuit'' to identify the result of the 
calculation.
    Terms specific to the Post-9/11 GI Bill are included in proposed 
Sec.  21.9505.

Section 3311. Educational Assistance for Service in the Armed Forces 
Commencing on or After September 11, 2001: Entitlement

    Section 3311 specifies service requirements for establishing 
eligibility for educational assistance under chapter 33, the qualifying 
categories of discharges and releases, and the types of service that 
will not be considered active duty for purposes of establishing 
eligibility. Rules regarding these statutory provisions are included in 
proposed Sec. Sec.  21.9505 and 21.9520.

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Section 3312. Educational Assistance: Duration

    Section 3312 provides a maximum of 36 months (or its equivalent for 
part-time training) of educational assistance to individuals meeting 
the eligibility requirements contained in section 3311, to be used 
during the individual's period of eligibility. This section 
incorporates a 48-month limitation in 38 U.S.C. 3695 on the total 
period in which an individual can receive educational assistance by 
combining two or more educational assistance programs administered by 
VA. In addition, section 3312 provides that there will be no charge 
against an eligible individual's entitlement to educational assistance 
under chapter 33 if the individual discontinued training because he or 
she was ordered to active duty under 10 U.S.C. 688, 12301(a), 12301(d), 
12301(g), 12302, or 12304, was ordered to a new duty location, or was 
required to perform an increased amount of work in his or her unit, and 
failed to receive credit toward the completion of his or her 
educational, professional, or vocational objective. The period for 
which receipt of educational assistance allowance is not charged 
against an individual's entitlement shall not exceed the portion of the 
period of enrollment in the course or courses for which the individual 
failed to receive credit or lost training time. Rules regarding these 
statutory provisions are included in proposed Sec. Sec.  21.9550 and 
21.9560(d).

Section 3313. Educational Assistance: Amount; Payment

    Section 3313 provides that eligible individuals may receive 
educational assistance for pursuit of any program of education approved 
for purposes of 38 U.S.C. chapter 30 and offered by an institution of 
higher learning. The maximum amount of educational assistance payable 
for an individual's pursuit of an approved program of education will 
depend, in part, upon the individual's length of creditable active duty 
service as shown in the following chart:

------------------------------------------------------------------------
                                                               Maximum
  Service requirements  (aggregate service on active  duty    percentage
                       after 9/10/01)                         of amounts
                                                               payable
------------------------------------------------------------------------
At least 36 months \1\.....................................          100
At least 30 continuous days (Must be discharged due to               100
 service-connected disability).............................
At least 30 months, but less than 36 months \1\............           90
At least 24 months, but less than 30 months \1\............       \3\ 80
At least 18 months, but less than 24 months \2\............       \3\ 70
At least 12 months, but less than 18 months \2\............           60
At least 6 months, but less than 12 months \2\.............           50
At least 90 days, but less than 6 months \2\...............           40
------------------------------------------------------------------------
\1\ Includes entry level and skill training.
\2\ Excludes entry level and skill training.
\3\ If the service requirements are met at both the 80 and 70 percentage
  level, the maximum percentage of 70 must be applied to amounts
  payable.

    Section 3313 directs VA to charge an individual's entitlement to 
educational benefits under chapter 33 for payments of educational 
assistance (established charges; monthly housing allowance; lump sum 
for books, supplies, equipment, and other educational costs). An 
eligible individual, other than an individual on active duty, is 
entitled to receive educational assistance equal to the amount of the 
school's established charges, up to the maximum amount of established 
charges regularly charged to full-time, undergraduate, in-State 
students by the public institution of higher learning having the 
highest rate of regularly-charged established charges in the State in 
which the individual is enrolled, as well as a prorated amount for 
books, supplies, equipment, and other educational costs (not to exceed 
$1,000 for an entire academic year), which are paid in a lump sum for 
the quarter, semester, or term. In addition, an individual, other than 
an individual on active duty, whose rate of pursuit for a program of 
education (distance learning programs are specifically excluded by 38 
U.S.C. 3313(c)(1)(B)) is greater than half-time is entitled to a 
monthly housing allowance equal to the amount of the basic allowance 
for housing payable under 37 U.S.C. 403 for a member of the military 
with dependents in pay grade E-5, using the ZIP code area wherein all, 
or a majority, of the institution of higher learning in which the 
individual is enrolled is located. The actual amounts payable to, or on 
behalf of, an eligible individual must be multiplied by the maximum 
percentage correlating to the individual's creditable length of service 
(as shown in the chart above). Additionally, the actual lump sum amount 
payable for books, supplies, equipment, and other educational costs 
must be multiplied by the percentage correlating to the individual's 
rate of pursuit if the individual's rate of pursuit is 50 percent or 
less.
    An individual on active duty is eligible to receive educational 
assistance equal to the amount of the school's established charges or 
the portion of established charges not covered by military tuition 
assistance under 10 U.S.C. 2007(a) or (b), whichever is less.
    In the event that an individual is pursuing an approved program of 
education at more than one institution of higher learning, VA proposes 
to use the primary institution of higher learning (institution from 
which degree will be granted) to determine the in-State maximum for 
established charges and the monthly housing allowance. If the 
individual is only pursuing distance education courses at the primary 
school, VA proposes to determine the monthly housing allowance payable 
using the ZIP code of the institution of higher learning where resident 
courses are being pursued.
    While the statute provides that eligible individuals may receive 
educational assistance for pursuit of any program of education that is 
approved for the purposes of 38 U.S.C. chapter 30 and offered by an 
institution of higher learning as defined in 38 U.S.C. 3452(f), it does 
not address the maximum amounts payable for individuals pursuing 
training in a foreign country. The statutory definition of institution 
of higher learning includes educational institutions that are not 
located in States but offer courses leading to a standard degree (or 
its equivalent) that is recognized by the Secretary of the Department 
of Education (or comparable official) of the country or other 
jurisdiction in which the institution is located. VA proposes to pay 
individuals in pursuit of an approved program of education located at a 
foreign branch of a State-side institution in the same manner as in-
State students using the maximum amounts payable for the State in which 
that institution's main campus is located. VA also proposes to set the 
maximum amount of established charges payable for individuals in 
pursuit of an approved program of education at a foreign institution at 
the average amount of established charges regularly charged full-time 
undergraduate in-State students by public institutions of higher 
learning throughout the United States during the preceding academic 
year. Further, VA proposes to set the maximum monthly housing allowance 
payable for individuals in pursuit of an approved program of education 
at a foreign institution at the average monthly amount of the basic 
allowance for housing payable under 37 U.S.C. 403 for a member of the 
military with

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dependents in pay grade E-5 residing in the continental United States.
    Section 3313(d)(3) requires VA to establish regulations for 
determining the number of months of entitlement of an individual to 
chapter 33 educational assistance that are chargeable based on payments 
made to the individual for pursuit of an approved program of education. 
Except for lump sum stipends for books, supplies, equipment, and other 
educational costs that an individual receives for a certified period of 
enrollment, VA proposes to charge entitlement based on rate of pursuit 
and enrollment dates similar to the method used to calculate 
entitlement charge under 38 U.S.C. chapter 30. VA will compute the 
individual's rate of pursuit from the beginning date of the educational 
assistance award to the ending date. If the individual's rate of 
pursuit is half-time or less, VA is required to calculate the amount of 
entitlement to charge as a percentage of a month equal to the number of 
course hours the individual is pursuing divided by the number of course 
hours required for full-time pursuit at the institution of higher 
learning. For the purpose of consistency in determining the amount of 
entitlement to charge, VA proposes to use the same formula to calculate 
every individual's rate of pursuit, up to and including for full-time 
training.
    The amount payable to an individual for a lump sum for books, 
supplies, equipment, and other educational costs (also referred to as 
the book stipend) is limited to up to $1,000 each academic year. The 
book stipend must be paid proportionally based on the fraction of the 
academic year that term, quarter, or semester the individual is 
attending represents. If the individual is only eligible to receive a 
lump sum payment for the book stipend for the certified period of 
enrollment, VA proposes to limit the entitlement charge to one day for 
each $33 received by the individual, with any remaining amount rounded 
to the nearest amount evenly divisible by $33. Individuals who receive 
payment of established charges or the monthly housing allowance will 
not receive an additional entitlement charge for the book stipend. The 
formula used to determine entitlement charge for the book stipend will 
only be used if the individual does not receive any other payment under 
38 U.S.C. 3313. Using this formula would be most advantageous to the 
individual because it would allow the individual to receive educational 
assistance for books, supplies, equipment, and other educational costs 
while maximizing entitlement use.
    A servicemember pursuing an approved program of education would be 
entitled to receive the lesser of: (1) the amount of the school's 
established charges which similarly circumstanced nonveterans are 
required to pay; or (2) the portion of the established charges not 
covered by military tuition assistance.
    VA would pay the appropriate amount of established charges as a 
lump sum sent directly to the institution of higher learning on the 
individual's behalf. VA would make all other payments directly to the 
individual. Rules regarding these provisions are included in proposed 
Sec. Sec.  21.9560, 21.9640, and 21.9680.

Section 3314. Tutorial Assistance

    Section 3314 permits an eligible individual in pursuit of an 
approved program of education to receive tutorial assistance, subject 
to the conditions applicable to veterans under 38 U.S.C. 3492, if the 
instructor of the course certifies that assistance is essential to 
correct a deficiency, and the course is required for satisfactory 
pursuit of the program of education. Section 3492 requires that the 
individual must be in pursuit of a program of education on at least a 
half-time basis. Chapter 33 does not recognize the training times used 
in the administration of other educational assistance programs. 
Therefore, VA proposes to permit an individual with a rate of pursuit 
of at least 50 percent to qualify for tutorial assistance as that 
percent represents a course load that is equivalent with half-time 
training in other educational assistance programs. An individual who 
receives tutorial assistance would not be charged entitlement for 
chapter 33 educational assistance. An individual's receipt of tutorial 
assistance would be limited to $100 per month for up to 12 months or up 
to a maximum of $1,200. Rules regarding these provisions are included 
in proposed Sec. Sec.  21.9560(d) and 21.9685.

Section 3315. Licensure and Certification Tests

    Section 3315 permits an eligible individual to receive 
reimbursement for the actual cost of taking one licensing or 
certification test on or after August 1, 2009, up to a maximum of 
$2,000, and no charge would be made against the individual's 
entitlement to chapter 33 educational assistance. Rules regarding this 
provision are consistent with statute and existing regulations for 
sections authorized under 38 U.S.C. 3323 to govern the administration 
of the program and are included in proposed Sec. Sec.  21.9560, 
21.9625, 21.9665, and 21.9680.

Section 3316. Supplemental Educational Assistance: Members With 
Critical Skills or Specialty; Members Serving Additional Service

    Section 3316 provides that the Secretary of the military department 
concerned, pursuant to regulations prescribed by the Secretary of 
Defense, may increase the amount of educational assistance payable to 
an individual who is entitled to receive: (1) an increase (``kicker'') 
based on a skill or specialty in which there is a critical shortage of 
personnel, for which there is difficulty recruiting, or, in the case of 
critical units, for which there is difficulty in retaining personnel; 
or (2) a supplemental educational assistance increase based on 
additional years of service as authorized by subchapter III of 38 
U.S.C. chapter 30. These increases are at the sole discretion of the 
Secretary of the military department concerned.
    Section 3316 provides that the amount of the increased or 
supplemental educational assistance payable will be equal to the 
monthly amount of the increase authorized under 38 U.S.C. 3015(d) or 
3022, respectively. Those sections require that the monthly amount of 
the additional assistance be reduced for individuals not pursuing full-
time training. Section 3316 does not provide a method for adjusting the 
amount of the individual's additional educational assistance; 
therefore, VA proposes to proportionally reduce the monthly amount of 
the increase (``kicker'') or supplemental educational assistance 
payable under the Post-9/11 GI Bill by the percentage corresponding to 
the individual's rate of pursuit as determined by dividing the number 
of course hours the individual is pursuing by the number of course 
hours required for full-time pursuit. Any amount payable under this 
section will be paid as an increase to the monthly housing allowance, 
but can only be paid if the individual is eligible for the housing 
allowance for that term, quarter, or semester. Rules regarding these 
provisions are included in proposed Sec. Sec.  21.9525, 21.9555, 
21.9650, and 21.9655.

Section 3317. Public-Private Contributions for Additional Educational 
Assistance

    Section 3317 establishes the ``Yellow Ribbon G.I. Education 
Enhancement Program'' (referred to as the ``Yellow Ribbon Program''), 
which permits an institution of higher learning, at the school's 
option, to enter into an agreement with VA allowing the two parties to 
provide matching funds to cover a portion of the outstanding

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amount of established charges not covered under any other provision of 
38 U.S.C. chapter 33. VA would match each dollar funded by the school, 
but the combined amounts may not exceed the remainder of the full cost 
of the school's established charges. This program would only be 
available to individuals entitled to the 100 percent benefit rate 
(based on service requirements) who are pursuing training at an 
institution of higher learning located in the United States or at a 
branch of such institution that is located outside the United States.
    VA proposes to enter into an agreement with any institution of 
higher learning located in the United States seeking to participate in 
the Yellow Ribbon Program. For the sake of equality, VA proposes to 
require institutions to agree to--
     Provide contributions to eligible individuals who apply 
for such program at that institution (in a manner prescribed by the 
institution) on a first-come-first-served basis, regardless of the rate 
at which the individual is pursuing training (i.e., full-time versus 
less than full-time), in any given academic year;
     Make contributions toward the program on behalf of the 
individual in the form of a waiver;
     State the maximum number of individuals for whom 
contributions will be made in any given academic year; and
     Waive the same percentage of unmet established charges for 
all eligible individuals in any given academic year.
    Additionally, VA proposes to require each participating institution 
of higher learning to commit to provide contributions for eligible 
individuals for the entire academic year specified in the agreement.
    The most current list of colleges and universities participating in 
the Yellow Ribbon Program would be made available at VA's GI Bill Web 
site at https://www.gibill.va.gov. The list would include specific 
information regarding each school's agreement with VA. Proposed rules 
regarding the Yellow Ribbon Program provision are provided in Sec.  
21.9700.

Section 3318. Additional Assistance: Relocation or Travel Assistance 
for Individual Relocating or Traveling Significant Distance for Pursuit 
of a Program of Education

    Section 3318 permits an individual eligible for educational 
assistance under this chapter to receive a one-time-only payment of 
$500 if the individual resides in a county (or similar entity utilized 
by the Bureau of the Census) with less than 7 persons per square mile 
(as determined by the most recent decennial Census) and, in order to 
pursue a program of education under the Post-9/11 GI Bill, either: (1) 
Relocates at least 500 miles; or (2) travels by air to physically 
attend school if no other method of transportation is available due to 
an absence of roads or other infrastructure. If the individual requests 
payment for the rural relocation benefit, VA proposes to confirm that 
the individual physically relocated at least 500 miles by using a 
commonly available internet search engine for mapping, using the 
individual's resident address as the beginning point and the address of 
the institution of higher learning as the ending point. If the 
individual indicates that he or she was required to travel by air to 
reach the institution of higher learning for which he or she is 
enrolled, VA proposes to verify that the individual actually traveled 
by air by requesting that the individual provide an airline receipt for 
travel with a departure and destination airport within reasonable 
commuting distance from the individual's home of residence and the 
institution of higher learning, respectively.
    Section 3318 also authorizes VA to accept an individual's DD Form 
214 (Certification of Release or Discharge), the individual's most 
recent Federal income tax return, or other evidence as prescribed by 
regulation as proof of residence. VA proposes to accept the following 
additional documents as proof of residence: The most recent State 
income tax return, a rental/lease agreement, a mortgage document, or a 
current real property assessment. VA further proposes to accept the 
above-mentioned documents (excluding the DD Form 214) in the name of 
the transferor or, in the case of a child, a parent in the event that a 
dependent eligible for assistance under this program as a result of 
being granted transferred entitlement cannot personally produce 
adequate proof of residence because he or she lives with the transferor 
or, in the case of a child, a parent.
    In view of the nature of this one-time-only payment, VA proposes to 
make no charge against the individual's entitlement to chapter 33 
educational assistance. Rules regarding this provision are included in 
proposed Sec. Sec.  21.9660 and 21.9680(c).

Section 3319. Authority to Transfer Unused Education Benefits to Family 
Members

    Section 3319 provides that the Secretary of Defense may authorize 
the Secretary of each military department, at such Secretary's sole 
discretion, to permit individuals who meet certain service requirements 
and are eligible for educational assistance under the Post-9/11 GI Bill 
to transfer up to 36 months of their entitlement to educational 
assistance to a designated dependent or dependents. The Secretary of 
the Defense may limit the number of months of entitlement that may be 
transferred, but in no case may the Secretary limit the number of 
months to less than 18 months.
    The statute further provides the--
     Eligibility criteria for both the individual transferring 
the entitlement and the dependent;
     Administrative provisions (including designations, 
revocations, and modifications of transferred entitlement);
     Special provisions in the event of an overpayment of 
educational assistance allowance; and
     Limitations on using transferred entitlement as marital 
property, or the asset of a marital estate, subject to division in a 
divorce or other civil proceeding.
    Subject to the transferor's (individual who transfers the 
entitlement) 15-year period of eligibility, a spouse is entitled to use 
transferred entitlement in the same manner as the transferor and 
receive the same amounts that would be payable to the transferor. A 
child is entitled to use transferred entitlement in the same manner as 
the transferor and receive the same amounts that would be payable to 
the transferor as if the transferor was not on active duty. The child 
is not subject to the transferor's 15-year period of eligibility nor 
may the child use any transferred entitlement after reaching the age of 
26 years. A spouse may use the transferred entitlement for pursuit of 
the requirements of a secondary school diploma or equivalency 
certificate; a child can only do so if he or she has reached 18 years 
of age.
    For consistency among all educational assistance programs 
administered by VA, VA proposes to adopt the provisions of existing 
regulations governing transfer of entitlement in the event that section 
3319 does not address such provisions. Rules regarding the transfer of 
entitlement provisions are included in proposed Sec. Sec.  21.9530, 
21.9570, 21.9625, 21.9635, and 21.9570.

Section 3321. Time Limitation for Use of and Eligibility for 
Entitlement

    Section 3321 provides that an individual's period of eligibility 
for educational assistance will generally terminate 15 years from the 
last date of

[[Page 78880]]

discharge or release from active duty of at least 90 continuous days. 
However, if the individual is eligible for educational assistance under 
this program due to a discharge or release from active duty of at least 
30 days for a service-connected disability, the individual's period of 
eligibility will terminate effective 15 years from his or her date of 
discharge or release from active duty.
    Section 3321 does not address the period of eligibility for 
individuals who established eligibility based on a minimum of 90 
aggregate days of active duty service who do not have a period of 
service consisting of 90 continuous days. VA proposes to establish a 
15-year period of eligibility for these individuals beginning on the 
date of discharge or release from active duty for the last period of 
service used to meet the minimum service requirements under chapter 33.
    If an individual's eligibility is established as a result of a 
corrective action to an individual's military records by a competent 
military authority, the individual's period of eligibility will 
terminate effective 15 years from the date of the corrective action. 
This section also provides that VA, under certain conditions, will 
extend an individual's period of eligibility in the event the 
individual was captured and forcibly detained by a foreign government 
or power, or was prevented from initiating or completing the chosen 
program of education within the original period of eligibility because 
of a physical or mental disability that did not result from the 
individual's willful misconduct.
    Rules regarding these provisions are included in proposed 
Sec. Sec.  21.9530 and 21.9535.

Section 3322. Bar to Duplication of Educational Assistance Benefits

    Section 3322 prohibits concurrent receipt of educational assistance 
under the Post-9/11 GI Bill and any other educational assistance 
programs administered by VA (excluding the receipt of supplemental 
educational assistance, or an increase (``kicker'') payable as a result 
of eligibility under the Montgomery GI Bill--Active Duty program, or 
the Montgomery GI Bill--Selected Reserve program). If an individual is 
eligible for more than one program administered by VA, the individual 
must elect under which program he or she wishes to receive educational 
assistance. VA proposes to amend Sec. Sec.  21.3022, 21.4022, 21.5022, 
21.7143, and 21.7642 to include a reference to chapter 33 of title 38, 
U.S.C., and add a provision prohibiting duplication of educational 
assistance in Sec.  21.9690 of the proposed subpart P. Updating each of 
the aforementioned sections and adding Sec.  21.9690 will make it clear 
to the reader that an individual may not concurrently receive payment 
for training under the Post-9/11 GI Bill and any other educational 
assistance program administered by VA.
    Section 3322 also prohibits a period of service counted for 
purposes of repayment of an education loan under chapter 109 of title 
10, U.S.C., from being counted as a qualifying period of service for 
eligibility under the Post-9/11 GI Bill. In addition, it prohibits an 
individual who serves in the Selected Reserve from receiving credit for 
that service under more than one of the following educational 
assistance programs: the Post-9/11 GI Bill, the Montgomery GI Bill--
Active Duty program, the Montgomery GI Bill--Selected Reserve program, 
or the Reserve Educational Assistance Program. These restrictions are 
included under the definition of active duty in proposed Sec.  21.9505.

Section 3323. Administration

    Section 3323 requires VA to adhere to the provisions of section 
3034(a)(1), which includes the provisions of 3470, 3471, 3474, 3476, 
3482(a), 3483, and 3485 of title 38, U.S.C., and subchapters I and II 
(with the exception of secs. 3680(c) 3680(f), and 3687) of chapter 36 
of the same title in administering the Post-9/11 GI Bill in the 
instance that 38 U.S.C. chapter 33 does not address the subject matters 
covered under those sections.
    Some of the sections listed in the preceding paragraph generally 
apply to all educational assistance programs administered by VA and, 
therefore, exist in current VA regulations. VA proposes to revise 38 
CFR 21.1029, 21.1031, and 21.1032 to include a reference to the 
proposed subpart P and update authority citations as necessary. 
Furthermore, VA proposes to revise multiple sections in 38 CFR part 21, 
subpart D to do one or more of the following:
     Update the authority citations to include chapter 33 
authority;
     Amend the referenced sections to include chapter 33; and
     Remove references to chapter 34 because that educational 
assistance program expired on December 31, 1989.
    In addition, 38 U.S.C. 501, 503, 511, 512, 513, 5101, 5103, 5103A, 
and 5113 (applicable generally with respect to benefits administered by 
VA) are applicable to the administration of the Post-9/11 GI Bill. 
Sections 501, 503, 511, 512, and 513 include provisions related to VA's 
authority to prescribe rules and regulations to carry out the laws 
administered by the Department, determinations on administrative errors 
or equitable relief, finality of decisions by the Secretary, the 
Secretary's delegation of authority, and the Secretary's authority to 
enter into certain contracts or agreements. Sections 5101, 5103, and 
5103A include provisions relating to the filing of claims for benefits, 
VA's duty to notify claimants of required information and evidence, and 
VA's duty to assist claimants in obtaining benefits, which are 
applicable to any individual applying for any benefit administered by 
the Secretary. Section 5113(a) sets forth effective date provisions 
that are applicable, specifically, to education benefits under chapters 
30, 31, 32, 34, and 35 of title 38, U.S.C. We note that section 5113 
was not amended to include chapter 33 in this list. However, we believe 
Congress intended that the effective date provisions applicable to 
other VA educational assistance programs should be applied as well to 
educational assistance under the Post-9/11 GI Bill, chapter 33. We 
believe there is sufficient authority provided to the Secretary under 
section 3323(c)(1) of title 38, U.S.C., which states that ``the 
Secretary shall prescribe regulations for the administration of this 
chapter,'' to enable VA to prescribe regulations consistent with other 
educational assistance program regulations that are based on the 
authority provided in section 5113. Accordingly, section 5113 is listed 
as an authority in several places (along with section 3323(c)) that 
relate to effective dates.
    Section 3485 contains provisions for the administration of the 
work-study allowance. That section requires that individuals be 
pursuing training in an approved program of education at a rate of at 
least three-quarters of that required of a full-time student. Chapter 
33 does not recognize the training times used in the administration of 
other educational assistance programs. Therefore, VA proposes to permit 
individuals with a rate of pursuit of at least 75 percent to qualify 
for work-study allowance as that percent represents a course load that 
is equivalent with three-quarter time training in other educational 
assistance programs. Rules regarding this provision are included in 
Sec.  21.9670.
    Sections 3685 and 3690 of title 38, U.S.C., include provisions on 
overpayments to individuals in receipt of educational assistance and 
overcharges by educational institutions, discontinuance of allowances, 
examination of records, and misleading statements. Although these 
provisions are applicable to chapter 33 benefits, VA

[[Page 78881]]

proposes to clarify when the individual and when the institution of 
higher learning will be liable for any overpayments. Further, VA 
proposes to determine the amount of an overpayment for an individual in 
receipt of chapter 33 benefits as follows--(1) An individual who does 
not complete all courses in the certified period of enrollment for 
which he or she received payment, and who does not substantiate 
mitigating circumstances for not completing such enrollment, will be 
charged an overpayment equal to the amount of all educational 
assistance paid for that certified period of enrollment.
    (2) An individual who does not complete all courses in the 
certified period of enrollment, but who substantiates mitigating 
circumstances for not completing such courses, will be charged an 
overpayment equal to the prorated amount of educational assistance to 
which he or she is entitled.
    (i) VA will determine the prorated amount of the established 
charges by dividing the amount the individual was paid by the number of 
days in the certified enrollment period, and multiplying the result by 
the number of days from the beginning date of the enrollment period 
through the last date of attendance. The result of this calculation 
will equal the amount the individual is due. The difference between the 
amount of educational assistance paid and the amount of educational 
assistance the individual is due will be established as an overpayment.
    (ii) VA will determine the prorated amount of the monthly housing 
allowance by determining the amount the individual was entitled to 
while enrolled and subtracting that amount from the total amount paid. 
The difference between the amount of the monthly housing allowance paid 
and the amount of the monthly housing allowance the individual is due 
will be established as an overpayment.
    (iii) Individuals who have substantiated mitigating circumstances 
will not be charged an overpayment for the lump sum payment for books, 
supplies, equipment, and other educational costs (``book stipend'').
    Rules regarding these provisions are included in Sec.  21.9695.

Section 3324. Allocation of Administration and Costs

    Section 3324 provides that the Secretary of Veterans Affairs shall 
administer the Post-9/11 GI Bill and directs that educational 
assistance payments under this program be made from funds appropriated 
to, or otherwise made available to, VA for the payment of readjustment 
benefits. VA is not proposing regulations for the provisions included 
in this section.

II. Applicability of the Post-9/11 GI Bill to Individuals Under the 
Montgomery GI Bill Program

    Certain individuals who, as of August 1, 2009, are currently making 
contributions for or are already entitled to benefits under the 
provisions of 38 U.S.C. chapter 30, or would have been entitled to 
chapter 30 benefits if they had not declined participation upon entry 
into active duty service; or who are entitled to benefits under chapter 
107, 1606, or 1607 of title 10, U.S.C.; and who, as of the date of 
election, meet the eligibility requirements under 38 U.S.C. chapter 33, 
would be eligible to elect participation in the chapter 33 program. The 
individual would have to make an irrevocable election of chapter 33 by 
relinquishing entitlement to benefits under either chapter 30 of title 
38, U.S.C., or chapter 107, 1606, or 1607 of title 10, U.S.C. If the 
individual was making contributions under chapter 30 at the time of the 
election, the contributions would cease as of the month following.
    An individual who relinquishes entitlement under the provisions of 
chapter 30 and, as of August 1, 2009, had used entitlement but retains 
unused entitlement under that chapter would have a number of months of 
entitlement available to him or her under chapter 33 that equals the 
number of unused months remaining to him or her under chapter 30, 
including any months of transferred chapter 30 entitlement revoked by 
the individual in an irrevocable election. An individual who exhausted 
all chapter 30 entitlement prior to August 1, 2009, may not elect 
chapter 33 by relinquishing entitlement under chapter 30 (as that 
individual is no longer entitled under chapter 30). Individuals who are 
entitled to but have not used chapter 30 benefits, individuals who 
would have been eligible under chapter 30 had they not declined 
participation, and individuals who are making contributions towards 
chapter 30 and who have not used any entitlement under chapter 30 would 
be eligible to receive 36 months of entitlement under chapter 33.
    If an eligible individual requests educational assistance for a 
program of education that is not available to the individual under the 
provisions of 38 U.S.C. chapter 33 (e.g. , on-the-job training, flight 
training, reimbursement of national test fees), but is available under 
the chapter the individual relinquished, VA would provide educational 
assistance at the rate payable under the provisions of the relinquished 
chapter to the eligible individual for pursuit of any program of 
education that meets the approval criteria under--
    (1) 38 U.S.C. chapter 30, if the individual was eligible under that 
chapter; or
    (2) 10 U.S.C. chapter 1606, if the individual was eligible under 
that chapter; or
    (3) 10 U.S.C. chapter 1607, if the individual was eligible under 
that chapter.
    If an individual receives educational assistance for a program of 
education under the provisions of a relinquished chapter, the 
entitlement charge would be made against the individual's entitlement 
under chapter 33.
    An individual eligible for educational assistance under chapter 33 
by reason of relinquishing eligibility under another educational 
assistance program and, at the time of the chapter 33 election, the 
individual was also eligible for supplemental educational assistance 
under subchapter III of chapter 30 of title 38, U.S.C., a Montgomery GI 
Bill--Active Duty kicker provided under 38 U.S.C. 3015(d), or a 
Montgomery GI Bill--Selected Reserve kicker provided under 10 U.S.C. 
16131(i), will remain entitled to such increased amount(s) under 38 
U.S.C. chapter 33. The increased amount(s) would be paid to the 
individual as a lump sum in an amount equal to the quarter, semester, 
or term, as applicable, equivalent of the monthly amount to which the 
individual was entitled at the time of the election of chapter 33.
    We propose regulations providing that an eligible individual who 
makes an irrevocable election to receive educational assistance under 
chapter 33 by relinquishing entitlement under section 3011 or 3012 of 
chapter 30 may be entitled to receive a refund of the amount of his or 
her individual contributions to chapter 30 up to $1,200. The refund of 
contributions may only be paid to the individual who made the 
contributions and as an increase to the monthly housing allowance 
payable under Sec.  21.9640(b)(1)(ii) or (b)(2)(ii) at the time his or 
her entitlement exhausts.
    Rules regarding these statutory provisions are included in proposed 
Sec. Sec.  21.9550, 21.9560, 21.9590, 21.9645, 21.9650(b), and 21.9655.

III. Nonsubstantive Changes

    Public Law 98-525 (Department of Defense Authorization Act, 1985) 
terminated eligibility for persons receiving educational assistance 
under

[[Page 78882]]

chapter 34, effective December 31, 1989. For historical purposes, VA 
did not immediately update existing regulations to remove references to 
chapter 34 upon its expiration. However, VA proposes to remove 
references to chapter 34 in any section that is being updated for the 
Post-9/11 GI Bill and currently references chapter 34.

Paperwork Reduction Act of 1995

    This proposed rule contains no new collections of information under 
the Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3521) (``Act''). 
The existing collections of information under the Paperwork Reduction 
Act referenced in this proposed rule are approved under one of the 
following Office of Management and Budget (OMB) control numbers:
     2900-0154--Application for VA Education Benefits.
     2900-0073--VA Enrollment Certification.
     2900-0074--Request for Change of Program or Place of 
Training.
     2900-0156--Notice of Change in Student Status.
     2900-0465--Student Verification of Enrollment.
    In 38 CFR 21.9680(c), there are provisions requiring individuals to 
submit a request for the rural relocation benefit in writing. However, 
those provisions do not constitute a collection of information under 
the Act because VA anticipates that information will be collected from 
fewer than 10 persons annually. The rural relocation benefit is only 
available to individuals relocating more than 500 miles or by air from 
a county (or similar entity utilized by the Bureau of the Census) with 
less than 7 persons per square mile.

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 given year. This proposed rule would have no such 
effect on State, local, and tribal governments, or on the private 
sector.

Executive Order 12866 and Congressional Review Act

    This is an economically significant regulatory action under 
Executive Order 12866 and constitutes a major rule under the 
Congressional Review Act.
    Executive Order 12866 directs agencies to assess all costs and 
benefits 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). Executive 
Order 12866 classifies a ``significant regulatory action'' requiring 
review by OMB as any 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 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 entitlement recipients; 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.
    VA has examined the economic, interagency, budgetary, legal, and 
policy implications of this proposed rule and has concluded that it is 
a significant regulatory action under Executive Order 12866 because it 
is likely to result in a rule that may have an annual effect on the 
economy of $100 million or more and may raise novel legal or policy 
issues arising out of legal mandates, the President's priorities, or 
the principles set forth in the Executive Order. This proposed rule is 
also a major rule under the Congressional Review Act because it is 
likely to result in an annual effect on the economy of $100 million or 
more.
    VA has attempted to follow OMB circular A-4 to the extent feasible 
in this analysis. The circular first calls for a discussion of the need 
for the regulation. The Post-9/11 GI Bill was established to provide 
educational assistance to members of the Armed Forces who serve on 
active duty after September 10, 2001. The preamble above discusses the 
need for the regulation in more detail.
    The impact of this regulation is primarily to the federal budget. 
Eligible individuals may receive an educational assistance allowance 
for established charges not to exceed the highest amount charged full-
time in-State undergraduate students by the most expensive public 
institution in the State where the student is enrolled (or the national 
average of the most expensive in-State public institutions for 
individuals training at a foreign institution not associated with an 
institution located inside the United States), a monthly housing 
allowance up to the monthly amount payable under section 403 of title 
37, United States Code, for a member with dependents in pay grade E-5 
residing in the military housing area that encompasses all or the 
majority portion of the ZIP code area in which the institution is 
located, and a book stipend of up to $1,000 each academic year. 
Individuals may also qualify for a work-study allowance, tutorial 
assistance, reimbursement of a licensing or certification test, and a 
rural relocation benefit. Individuals eligible for 100 percent of the 
benefit may also receive additional funds under the Yellow Ribbon 
Program to cover established charges not otherwise covered under 
chapter 33.
    The effective date of the chapter 33 program is August 1, 2009; 
therefore, full year benefit costs begin in FY 2010. VA estimates the 
benefit cost of the program will be $1.2 billion in FY 2009, 
approximately $28.1 billion for five years, and $78.1 billion through 
2018.
    Due to the short length of time to implement this new benefit 
program and the lack of an existing payment system that will support 
the types of payments authorized under the new program, VA plans to 
utilize manual processing of claims in a preexisting system with 
limited functionality until an in-house Information Technology Systems 
(IT) solution can be developed. As a result, VA estimates discretionary 
costs of $78.8 million in FY 2009 and $452.6 million over ten years for 
IT and minor construction needs, supplies, equipment (including 
computers); increased rent; and salaries to support additional 
personnel. FY 2009 costs are offset by additional funding in the amount 
of $100 million dollars made available to VA in chapter 3 of title I of 
the Supplemental Appropriations Act, 2008.

Regulatory Flexibility Act

    The Secretary of Veterans Affairs hereby certifies that this 
proposed rule, if adopted, would not have a significant economic impact 
on a substantial number of small entities as they are defined in the 
Regulatory Flexibility Act, 5 U.S.C. 601-612. Although this proposed 
rule would affect some small entities that are testing organizations or 
educational institutions, any economic impact on them would be minor 
because these functions are currently being carried out for other 
educational assistance programs. Therefore, pursuant to 5 U.S.C. 
605(b), this proposed rule would be exempt from the initial and final 
regulatory flexibility

[[Page 78883]]

analyses requirements of sections 603 and 604.

Catalog of Federal Domestic Assistance

    The Catalog of Federal Domestic Assistance numbers and titles for 
the programs affected by this proposed rule are 64.117, Survivors and 
Dependents Educational Assistance; 64.120, Post-Vietnam Era Veterans' 
Educational Assistance; 64.124, All-Volunteer Force Educational 
Assistance; and 64.125, Vocational and Educational Counseling for 
Servicemembers and Veterans. The proposed rule would also affect the 
Montgomery GI Bill--Selected Reserve program and the Reserve 
Educational Assistance Program (REAP), for which there are no Catalog 
of Federal Domestic Assistance numbers.

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: September 26, 2008.
James B. Peake,
Secretary of Veterans Affairs.

    For the reasons set out in the preamble, VA proposes to amend 38 
CFR part 21 (subparts B, C, D, G, K, and L, and add subpart P) as 
follows:

PART 21--VOCATIONAL REHABILITATION AND EDUCATION

Subpart B--Claims and Applications for Educational Assistance

    1. The authority citation for part 21, subpart B continues to read 
as follows:

    Authority: 38 U.S.C. 501(a), ch.51, and as noted in specific 
sections.

    2. Amend Sec.  21.1029 by:
    a. In the introductory text, removing ``and L,'' and adding, in its 
place, ``L, and P,'';
    b. Revising the authority citation at the end of paragraph (e).
    The revision reads as follows:


Sec.  21.1029  Definitions.

* * * * *
    (e) * * *

(Authority: 10 U.S.C. 16136(b); 38 U.S.C 501(a), 3034(a), 3241(a), 
3323(a), 3471, 3513, 5101(a))

* * * * *
    3. Amend Sec.  21.1030 by revising the authority citation at the 
end of paragraphs (a), (b) and (c) to read as follows:


Sec.  21.1030   Claims.

    (a) * * *

(Authority: 10 U.S.C. 16136(b); 38 U.S.C 501(a), 3034(a), 3241(a), 
3323(a), 3471, 3513, 5101(a))


    (b) * * *

(Authority: 10 U.S.C. 16136(b); 38 U.S.C 501(a), 3034(a), 3241(a), 
3323(a), 3471, 3513, 5101(a))


    (c) * * *

(Authority: 10 U.S.C. 16136(b); 38 U.S.C 501(a), 3034(a), 3241(a), 
3323(a), 3471, 3513, 5101(a))

* * * * *


Sec.  21.1031   [Amended]

    4. Amend Sec.  21.1031(b)(1) introductory text by removing ``or L'' 
and adding, in its place, ``L, or P''.


Sec.  21.1032   [Amended]

    5. Amend Sec.  21.1032(a)(1) introductory text by removing ``or L'' 
and adding, in its place, ``L, or P''.
    6. Revise Sec.  21.1033(c) to read as follows:


Sec.  21.1033   Time limits.

* * * * *
    (c) Time limit for filing a claim for an extended period of 
eligibility under 10 U.S.C. chapter 1606, or 38 U.S.C. chapter 30, 32, 
33, or 35. VA must receive a claim for an extended period of 
eligibility provided by Sec.  21.3047, Sec.  21.5042, Sec.  21.7051, 
Sec.  21.7551, or Sec.  21.9535 by the later of the following dates:
    (1) One year from the date on which the spouse's, surviving 
spouse's, veteran's, reservist's, or other eligible individual's 
original period of eligibility ended; or
    (2) One year from the date on which the spouse's, surviving 
spouse's, veteran's, reservist's, or other eligible individual's 
physical or mental disability no longer prevented him or her from 
beginning or resuming a chosen program of education.

(Authority: 10 U.S.C. 16133(b); 38 U.S.C. 3031(d), 3232(a), 3321, 
3512)

* * * * *

Subpart C--Survivors' and Dependents' Educational Assistance Under 
38 U.S.C. Chapter 35

    7. The authority citation for part 21, subpart C continues to read 
as follows:

    Authority: 38 U.S.C. 501(a), 512, 3500-3566, and as noted in 
specific sections.

    8. Amend Sec.  21.3022 by:
    a. Revising paragraphs (a) through (i).
    b. Adding paragraph (j).
    c. Revising the authority citation at the end of the section.
    The revisions and addition read as follows:


Sec.  21.3022   Nonduplication--programs administered by VA.

* * * * *
    (a) 38 U.S.C. chapter 30 (Montgomery GI Bill--Active Duty);
    (b) 38 U.S.C. chapter 31 (Vocational Rehabilitation and 
Employment);
    (c) 38 U.S.C. chapter 32 (Post-Vietnam Era Veterans' Educational 
Assistance);
    (d) 38 U.S.C. chapter 33 (Post-9/11 GI Bill);
    (e) 10 U.S.C. chapter 1606 (Montgomery GI Bill--Selected Reserve);
    (f) 10 U.S.C. chapter 1607 (Reserve Educational Assistance 
Program);
    (g) 10 U.S.C. chapter 107 (Educational Assistance Test Program);
    (h) Section 903 of the Department of Defense Authorization Act, 
1981 (Pub. L. 96-342, 10 U.S.C. 2141 note.);
    (i) The Hostage Relief Act of 1980 (Pub. L. 96-449, 5 U.S.C. 5561 
note.); and
    (j) The Omnibus Diplomatic Security and Antiterrorism Act of 1986 
(Pub. L. 99-399).

(Authority: 10 U.S.C. 16136(b), 16166(b); 38 U.S.C. 3322, 3681)

Subpart D--Administration of Educational Assistance Programs

    9. The authority citation for part 21, subpart D is revised to read 
as follows:

    Authority: 10 U.S.C. 2141 note, ch. 1606; 38 U.S.C. 501(a), chs. 
30, 32, 33, 34, 35, 36, and as noted in specific sections.

    10. Amend Sec.  21.4005 by:
    a. Removing ``chapter 30, 32, 34, 35, or 36'' each place it appears 
and adding, in each place, ``chapter 30, 32, 33, 35, or 36''; removing 
``chapters 30, 32, 34, 35, or 36'' each place it appears and adding, in 
each place, ``chapters 30, 32, 33, 35, or 36''; removing ``chapter 30, 
32, or 35'' and adding, in each place, ``chapter 30, 32, 33, or 35''.
    b. Revising paragraph (a)(1)(ii) and (a)(2)(ii).
    c. Revising the authority citation at the end of paragraphs (a) and 
(b).
    d. Revising paragraph (e) heading.
    The revisions read as follows:


Sec.  21.4005   Conflicting interests.

* * * * *
    (a) * * *
    (1) * * *
    (ii) Offering a licensing or certification test that is approved 
for payment of educational assistance under 10 U.S.C.

[[Page 78884]]

chapter 1606, or 38 U.S.C. chapter 30, 32, 33, or 35 to veterans, 
reservists, or eligible individuals who take that test.
    (2) * * *
    (ii) Offering a licensing or certification test that is approved 
for payment of educational assistance under 10 U.S.C. chapter 1606, or 
38 U.S.C. chapter 30, 32, 33, or 35 to veterans, reservists, or 
eligible individuals who take that test.
* * * * *

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 3034(a), 3241(a), 3323(a), 
3683, 3689)


    (b) * * *

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 3034(a), 3241(a), 3323(a), 
3683, 3689)

* * * * *
    (e) Notice to veterans, reservists, and eligible individuals.
* * * * *
    11. Amend Sec.  21.4006 by revising the authority citation at the 
end of paragraphs (a), (a)(2), and (b) to read as follows:


Sec.  21.4006   False or misleading statements.

    (a) * * *

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 3034(a), 3241(a), 3323(a), 
3690)

* * * * *
    (2) * * *

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 3034(a), 3241, 3323(a), 
3690)


    (b) * * *

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 3034(a), 3241, 3323(a), 
3690)

* * * * *
    12. Amend Sec.  21.4008 by revising the authority citation at the 
end of paragraphs (a) and (b) to read as follows:


Sec.  21.4008   Prevention of overpayments.

    (a) * * *

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 3034(a), 3241, 3323(a), 
3690(b))


    (b) * * *

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 3034(a), 3241, 3323(a), 
3690(b))


    13. Amend Sec.  21.4009 by revising the authority citation at the 
end of paragraphs (b) through (j) to read as follows:


Sec.  21.4009   Waiver or recovery of overpayments.

* * * * *
    (b) * * *

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 512(a), 3034(a), 3241(a), 
3323(a), 3685)


    (c) * * *

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 512(a), 3034(a), 3241(a), 
3323(a), 3685, 3689(d))


    (d) * * *

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 512(a), 3034(a), 3241(a), 
3323(a), 3685, 3689(d))


    (e) * * *

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 512(a), 3034(a), 3241(a), 
3323(a), 3685, 3689(d))


    (f) * * *

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 512(a), 3034(a), 3241(a), 
3323(a), 3685, 3689(d))


    (g) * * *

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 512(a), 3034(a), 3241(a), 
3323(a), 3685, 3689(d))


    (h) * * *

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 512(a), 3034(a), 3241(a), 
3323(a), 3685, 3689(d))


    (i) * * *

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 512(a), 3034(a), 3241(a), 
3323(a), 3685, 3689(d))


    (j) * * *

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 512(a), 3034(a), 3241(a), 
3323(a), 3685, 3689(d))

* * * * *
    14. Amend Sec.  21.4020 by:
    a. Revising paragraph (a)(4) and (5); and
    b. Revising the authority citation at the end of paragraphs (a) and 
(b).
    The revisions read as follows:


Sec.  21.4020   Two or more programs.

    (a) * * *
    (4) 38 U.S.C. chapters 30, 32, 33, 34, 35, and 36;
    (5) 10 U.S.C. chapters 107, 1606, and 1607;
* * * * *

(Authority: 10 U.S.C. 16136(b), 16166(b); 38 U.S.C. 3034(a), 
3241(a), 3323(a), 3695(a))


    (b) * * *

(Authority: 10 U.S.C. 16136(b), 16166(b); 38 U.S.C. 3034(a), 
3241(a), 3323(a), 3695(b))

* * * * *
    15. Revise Sec.  21.4022 to read as follows:


Sec.  21.4022   Nonduplication--programs administered by VA.

    A veteran, reservist, or eligible individual who is eligible for 
educational assistance allowance or subsistence allowance under more 
than one of the provisions of law listed in this paragraph, whether 
based on his or her own service or the service of another person, 
cannot receive such benefits concurrently. The individual must elect 
under which program he or she will receive benefits for the particular 
period or periods during which education or training is to be pursued.
    (a) 38 U.S.C. 30 (Montgomery GI Bill--Active Duty);
    (b) 38 U.S.C. 31 (Vocational Rehabilitation and Employment 
Program);
    (c) 38 U.S.C. 32 (Post-Vietnam Era Veterans' Educational 
Assistance);
    (d) 38 U.S.C. 33 (Post-9/11 GI Bill)
    (e) 38 U.S.C. 35 (Survivors' and Dependents' Educational 
Assistance);
    (f) 10 U.S.C. 1606 (Montgomery GI Bill--Selected Reserve);
    (g) 10 U.S.C. 1607 (Reserve Educational Assistance Program);
    (h) 10 U.S.C. 107 (Educational Assistance Test Program);
    (i) Section 903 of the Department of Defense Authorization Act, 
1981 (Pub. L. 96-342, 10 U.S.C. 2141 note);
    (j) The Hostage Relief Act of 1980 (Pub. L. 96-449), 5 U.S.C. 5661 
note);
    (k) The Omnibus Diplomatic Security and Antiterrorism Act of 1986 
(Pub. L. 99-399).

(Authority: 10 U.S.C. 16136(b), 16166(b); 38 U.S.C. 3322, 3681)


    16. Amend Sec.  21.4145 by:
    a. In paragraph (a)(1), removing ``chapter 30 or 32'' and adding, 
in its place, ``chapter 30, 32 or 33''; and
    b. Revising the authority citation at the end of paragraphs (a), 
(c), (d), (e), (f), and (h).
    c. Adding an authority citation at the end of paragraph (b).
    d. Adding an authority citation at the end of paragraph (g).
    The revisions and additions read as follows:


Sec.  21.4145   Work study allowance.

    (a) * * *

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 3034(a), 3104(a)(4), 
3241(a), 3323(a), 3485, 3537)


    (b) * * *

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 3034(a), 3104(a)(4), 
3241(a), 3323(a), 3485, 3537, 5101(a))


    (c) * * *

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 3034(a), 3104(a)(4), 
3241(a), 3323(a), 3485, 3537)


    (d) * * *

(Authority: 10 U.S.C. 16136(b); 38 U