Veterans' Training: Time Limit for Submitting Certifications Under the Service Members Occupational Conversion and Training Act

DEPARTMENT OF VETERANS AFFAIRS

38 CFR Part 21

RIN 2900-AI85

Veterans' Training: Time Limit for Submitting Certifications

Under the Service Members Occupational Conversion and Training Act

AGENCY: Department of Veterans Affairs.

ACTION: Proposed rule.

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SUMMARY: This document proposes to amend the training assistance and

training benefit regulations of the Department of Veterans Affairs

(VA). It proposes to place deadlines for submitting the certifications

needed for both periodic payments and lump-sum deferred-incentive

payments under the Service Members Occupational Conversion and Training

Act (SMOCTA). Since the Act has a sunset provision, all work for which

payments are due has been completed. This proposal would allow VA to

close the administration of SMOCTA.

DATES: Comments must be received on or before January 9, 1998.

ADDRESSES: Mail or hand deliver written comments to: Director, Office

of Regulations Management (02D), Department of Veterans Affairs, 810

Vermont Ave., NW, Room 1154, Washington, DC 20420. Comments should

indicate that they are submitted in response to ``RIN 2900-AI85''. All

written comments received will be available for public inspection at

the above address in the Office of Regulations Management, Room 1158,

between the hours of 8:00 a.m. and 4:30 p.m., Monday through Friday

(except holidays).

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

for Policy and Program Administration,

[[Page 60465]]

Education Service, Veterans Benefits Administration, 202-273-7187.

SUPPLEMENTARY INFORMATION: This document proposes to amend 38 CFR Part

21, Subpart F-3. It proposes to place two-year deadlines for submitting

the certifications required for both periodic payments and lump-sum

deferred-incentive payments under the Service Members Occupational

Conversion and Training Act (SMOCTA), 10 U.S.C. 1143, note.

Under SMOCTA, VA has made periodic payments to employers while they

trained veterans who were forced or induced to leave military service

by reason of the drawdown of the Armed Forces. SMOCTA provides that the

maximum period of training for which assistance may be provided on

behalf of a veteran is 18 months. Under SMOCTA VA also provides for

lump-sum deferred-incentive payments to employers if the veterans

remained employed in the occupation for which they were trained for at

least four continuous months after they completed training. Although

the National Defense Authorization Act for Fiscal Year 1994 (Pub. L.

103-160) extended the date by which a veteran could enter a SMOCTA

training program to March 31, 1997, Pub. L. 103-335 only extended the

availability of SMOCTA funds for obligation until September 30, 1995.

The effect of these provisions is that the last period of training for

which VA may provide assistance will end on September 30, 1997, and the

last period of continuous employment for which lump-sum deferred-

incentive payments are due will end on January 31, 1998.

VA has provided by regulation (38 CFR 21.4832(a)(3)) that periodic

payments will be made only after the employer certifies that the

veteran's progress during the period was satisfactory and further

certifies the number of hours the veteran worked during the period. VA

also has provided by regulation (38 CFR 21.4832(b)(1)) that lump-sum

deferred-incentive payments will be made only after the employer and

the veteran certify that the veteran has been employed in the

occupation for which the veteran trained for at least four continuous

months after the last date of training.

This document proposes to amend the regulations to state that the

periodic payments will be made only if the employer certifies training

on or before September 30, 1999. This document also proposes to amend

the regulations to state that the lump-sum deferred-incentive payments

will be made only if the employee's certification (there are provisions

for waiver of the employee's certification; 38 CFR 21.4382) and the

employer's certification required for that payment are submitted on or

before January 31, 2000. These provisions appear to be warranted. They

provide more than a reasonable amount of time for submission of claims

after the programs have ended and also will eliminate the need for the

VA to provide administrative personnel available to service such

claims.

The Secretary of Veterans Affairs hereby certifies that this

proposed rule, if promulgated, 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. The adoption of the

proposed rule would affect some small entities. However, the effect of

the proposed rule, requiring employers to submit certifications within

two years of the end of SMOCTA training, would not impose any

additional costs on the employer. Pursuant to 5 U.S.C. 605(b), this

proposed rule, therefore, is exempt from the initial and final

regulatory flexibility analyses requirements of Secs. 603 and 604.

No Catalog of Federal Domestic Assistance number has been assigned

to the program affected by this proposed rule.

List of Subjects in 38 CFR Part 21

Administrative practice and procedure, Armed forces, Civil rights,

Claims, Colleges and universities, Conflict of interests, Defense

Department, Education, Educational institutions, Employment, Grant

programs--education, Grant programs--veterans, Health care, Loan

programs--education, Loan programs--veterans, Manpower training

programs, Reporting and recordkeeping requirements, Travel and

transportation expenses, Veterans, Vocational education, Vocational

rehabilitation.

Approved: October 27, 1997.

Hershel W. Gober,

Acting Secretary of Veterans Affairs.

For the reasons set forth in the preamble, 38 CFR part 21 (subpart

F-3) is proposed to be amended as set forth below.

PART 21--VOCATIONAL REHABILITATION AND EDUCATION

Subpart D--Administration of Educational Assistance Programs

1. The authority for part 21, subpart F-3 continues to read as

follows:

Authority: 10 U.S.C. 1143 note; sec. 4481-4487, Pub. L. 102-484,

106 Stat. 2757-2769; sec. 610, Pub. L. 103-446, 108 Stat. 4673-4674,

unless otherwise noted.

2. In Sec. 21.4832, paragraphs (e)(3) and (e)(4) are added to read

as follows:

Sec. 21.4832 Payments to employers.

* * * * *

(e) Restrictions on payments. * * *

(3) VA will not release any periodic payments for training provided

by an employer if VA receives the employer's certification for that

training after September 30, 1999.

(4) VA will not release any lump sum deferred incentive payment if

VA receives either the veteran's or employer's certification required

for that payment after January 31, 2000.

(Authority: 106 Stat. 2762, Pub. L. 102-484, sec. 4487(b); 10 U.S.C.

1143, note)

[FR Doc. 97-29633 Filed 11-7-97; 8:45 am]

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