Veterans Education: Implementation of the Veterans' Benefits Act of 1992 and the Department of Defense Authorization Act for Fiscal Year 1993 in the Post-Vietnam Era Veterans' Educational Assistance Program

DEPARTMENT OF DEFENSE

DEPARTMENT OF VETERANS AFFAIRS

38 CFR Part 21

RIN 2900-AG23

Veterans Education: Implementation of the Veterans' Benefits Act

of 1992 and the Department of Defense Authorization Act for Fiscal Year

1993 in the Post-Vietnam Era Veterans' Educational Assistance Program

AGENCIES: Department of Defense and Department of Veterans Affairs.

ACTION: Final rule.

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

SUMMARY: This final rule amends the educational assistance and

educational benefits regulations of the Department of Veterans Affairs

(VA). It makes changes concerning measurement of training time,

duplication of benefits, advance payment for work study, and permission

for some service members who participated in the Post-Vietnam Era

Veterans' Educational Assistance Program (VEAP) to instead elect to

receive benefits under the Montgomery GI Bill--Active Duty. These

changes restate statutory requirements.

EFFECTIVE DATES: The effective dates of the changes made by this final

rule are as follows:

October 23, 1992: Sec. 21.5058.

October 29, 1992: Secs. 21.5023, 21.5145, 21.5231, and 21.5250.

July 1, 1993: Sec. 21.5270.

FOR FURTHER INFORMATION CONTACT: June C. Schaeffer, Assistant Director

for Policy and Program Administration, Education Service, Veterans

Benefits Administration, 202-273-7187.

SUPPLEMENTARY INFORMATION: Regulations concerning VA-administered

educational assistance and educational benefits are contained in 38 CFR

Part 21. The Veterans' Benefits Act of 1992 (Pub. L. 102-568) amends

educational assistance provisions under VEAP and amends other

provisions that affect work-study under that program. The National

Defense Authorization Act for Fiscal Year 1993 (Pub. L. 102-484) allows

some VEAP participants to receive benefits under the Montgomery GI

Bill--Active Duty. This document contains a number of changes to the

regulations which merely reflect certain changes made by these public

laws. These changes to the regulations are as follows.

Under Public Law 102-568, the limit on the amount of money that VA

can pay in advance on a work-study contract has been changed. Formerly,

that limit was 40 percent of the total amount payable under the

contract. Now the limit is the lesser of 40 percent of the total amount

payable under the contract or 50 times the applicable minimum hourly

wage in effect on the date the contract is signed. Changes are made to

38 CFR 21.5145 to reflect these statutory provisions.

Public Law 102-484, among other things, provides that a veteran who

has been discharged under the Voluntary Separation Incentive or Special

Separation Benefit programs before October 23, 1992, was eligible on or

before October 23, 1993 to elect to receive educational assistance

under the Montgomery GI Bill--Active Duty in lieu of any other

educational assistance, including VEAP. Changes are made to

Sec. 21.5058 to reflect these statutory changes.

Previously, Sec. 21.5023 allowed for veterans receiving assistance

under the Government Employees' Training Act (GETA) also to receive

assistance under VEAP if the VEAP training occurred other than during

duty hours. However, under Pub. L. 102-568 payment under VEAP is now

prohibited for veterans receiving assistance under GETA regardless of

whether the veteran is a full-time or part-time employee. Changes are

made to Sec. 21.5023 to reflect this statutory change.

Several provisions of Public Law 102-568 apply to VEAP. These are

prohibition of receipt of educational assistance while the veterans is

training under the Service Members Occupational Conversion and Training

Act; a change in the ending date of the award of educational assistance

when the veterans die during the period covered by an advanced payment

of educational assistance; prohibition of approval of a nonaccredited

course offered by independent study and prohibition of approval of an

enrollment in such a course; and measurement of nonaccredited courses

not leading to a standard college degree. Changes are made to 38 CFR

21.5231, 21.5250, and 21.5270 to reflect these changes.

The effective dates of the various changes made by this final rule

reflect the effective dates of the corresponding statutory changes.

Nonsubstantive changes are made for purposes of clarity.

This final rule reflects statutory changes and, therefore, is not

subject to the provisions of 5 U.S.C. 552, or 553, including the notice

and comment provisions.

The Secretary of Veterans Affairs and the Secretary of Defense

hereby certify 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, 5 U.S.C. 601-612. The

changes made by the final rule restate statutory changes. Pursuant to 5

U.S.C. 605(b), this final rule, therefore, is exempt from the initial

and final regulatory flexibility analyses requirements of Secs. 603 and

604.

The Catalog of Federal Domestic Assistance number for the

program affected by this final rule is 64.120.

List of Subjects in 38 CFR Part 21

Civil rights, Claims, Education, Grant programs-education, Loan

programs-education, Reporting and recordkeeping requirements, Schools,

Veterans, Vocational education, Vocational rehabilitation.

Approved: October 11, 1995.

Jesse Brown,

Secretary of Veterans Affairs.

Samuel E. Ebbesen,

Lieutenant General, USA, Deputy Assistant Secretary (Military Personnel

Policy), Department of Defense.

For the reasons set out in the preamble, 38 CFR part 21, subpart G

is amended as set forth below.

PART 21--VOCATIONAL REHABILITATION AND EDUCATION

Subpart G--Post-Vietnam Era Veterans' Educational Assistance Under

38 U.S.C. Chapter 32

1. The authority citation for part 21, subpart G is revised to read

as follows:

Authority: 38 U.S.C. 501(a), Chapter 32, unless otherwise noted.

Sec. 21.5023 [Amended]

2. In Sec. 21.5023, paragraph (b) is amended by removing ``and

whose full salary is being paid to him or her while so training''.

Sec. 21.5058 [Amended]

3. In Sec. 21.5058, paragraph (a) is amended by adding the heading

``General.''

4. In Sec. 21.5058 paragraphs (b) and (c) are revised to read as

follows:

[[Page 7218]]

Sec. 21.5058 Resumption of participation.

* * * * *

(b) Disenrollment in order to participate in other educational

programs. A person who elects to disenroll in order to receive

educational assistance allowance under 38 U.S.C. chapter 34 or to

receive an officer adjustment benefit payable under Sec. 21.4703 may

not reenroll if he or she has negotiated a check under the provisions

of law governing the program elected in lieu of the Post-Vietnam Era

Veterans' Educational Assistance Program. A person who elects to

disenroll in order to receive educational assistance under the

Montgomery GI Bill--Active Duty, as provided in Sec. 21.7045, may not

reenroll.

(Authority: 38 U.S.C. 3018A, 3018B, 3202(1), 3222)

(c) Reenrollment permitted following some disenrollments. (1)

Except as provided in paragraph (b) of this section, a person who has

disenrolled may reenroll, but will have to qualify again for minimum

participation as described in Sec. 21.5052(a).

(2) If a person does reenroll, he or she may ``repurchase''

entitlement by tendering previously refunded contributions which he or

she received upon disenrollment, subject to the conditions of

Sec. 21.5052(f).

(Authority: 38 U.S.C. 3221, 3222)

5. In Sec. 21.5145, paragraph (e) is revised to read as follows:

Sec. 21.5145 Work-study program.

* * * * *

(e) Payment in advance. VA will pay in advance an amount equal to

the lesser of the following:

(1) 40 percent of the total amount payable under the contract; or

(2) An amount equal to 50 times the applicable minimum hourly wage

in effect on the date contract is signed.

(Authority: 38 U.S.C. 3241, 3485)

* * * * *

Sec. 21.5231 [Amended]

6. Section 21.5231, is amended by removing ``in the same manner as

it is applied in the administration of chapters 34 and 36''.

7. In Sec. 21.5250, the introductory text of paragraph (a) and

paragraph (a)(3) are revised, and paragraph (a)(16) is added, to read

as follows:

Sec. 21.5250 Courses.

(a) In administering benefits payable under 38 U.S.C. chapter 32,

VA and, where appropriate, the State approving agencies shall apply the

following sections.

* * * * *

(3) Section 21.4252--Courses precluded.

* * * * *

(16) Section 21.4267--Approval of independent study.

* * * * *

8. In Sec. 21.5270, paragraphs (b) and (j) are removed and

reserved; and the introductory text and paragraph (c) are revised, to

read as follows:

Sec. 21.5270 Assessment and pursuit of courses.

In the administration of benefits payable under 38 U.S.C. chapter

32, VA shall apply the following sections.

* * * * *

(c) Section 21.4272--Collegiate course measurement.

(Authority: 38 U.S.C. 3241, 3688)

* * * * *

[FR Doc. 96-4196 Filed 2-26-96; 8:45 am]

BILLING CODE 8320-01-P