article: SECTION 1. SHORT TITLE. This Act may be cited as the ``Montgomery GI Bill Improvements Act of 2001''. SEC. 2. REPEAL OF PAY REDUCTION AND ELECTION NOT TO ENROLL IN BASIC EDUCATIONAL ASSISTANCE. (a) Pay Reduction.--(1) Section 3011 of title 38, United States Code, is amended by striking subsection (b). (2) Section 3012 of that title is amended by striking subsection (c). (b) Authority To Elect Not To Enroll.--(1) Section 3011(c) of that title is amended-- (A) by striking paragraph (1); and (B) by redesignating paragraphs (2) and (3) as paragraphs (1) and (2), respectively. (2) Section 3012(d) of that title is amended-- (A) by striking paragraph (1); and (B) by redesignating paragraphs (2) and (3) as paragraphs (1) and (2), respectively. (c) Opportunities To Withdraw Election Not To Enroll.--(1) Section 3016(a)(1) of that title is amended by striking ``, and does not make an election under section 3011(c)(1) or section 3012(d)(1)''. (2) Sections 3018A and 3018B of that title are each amended by adding at the end the following new subsection: ``(e) Notwithstanding subsection (b), no reduction in the pay of an individual under this section shall be made for months beginning on or after the date that is six months after the date of the enactment of the Montgomery GI Bill Improvements Act of 2001. Any obligation of an individual under subsection (b) as of the commencement of such month shall be deemed to be fully satisfied as of the date of the commencement of such month.''. (3)(A) Section 3018C(e) of that title is amended-- (i) by striking paragraphs (3) and (4); and (ii) by redesignating paragraph (5) as paragraph (3). (B) Section 3018C of that title is amended by adding at the end the following new subsection: ``(f) Notwithstanding subsection (b), no reduction in the pay of an individual under this section shall be made for months beginning on or after the date that is six months after the date of the enactment of the Montgomery GI Bill Improvements Act of 2001. Any obligation of an individual under subsection (b) as of the commencement of such month shall be deemed to be fully satisfied as of the date of the commencement of such month.''. (d) Effective Date.--The amendments made by subsections (a) and (b) shall take effect six months after the date of the enactment of this Act, and apply to individuals whose initial obligated period of active duty under section 3011 or 3012 of title 38, United States Code, as the case may be, begins on or after such date. (e) Termination of Pay Reductions in Progress.--Any reduction in the basic pay of an individual referred to in subsection (b) of section 3011 of title 38, United States Code, by reason of such subsection, or of any individual referred to in subsection (c) of section 3012 of such title by reason of such subsection, shall cease commencing with months beginning on or after the date that is six months after the date of the enactment of this Act, and any obligation of such individual under such subsection (b) or (c), as the case may be, as of that date shall be deemed to be fully satisfied as of the date of the commencement of the first such month. SEC. 3. TRANSFER OF ENTITLEMENT TO EDUCATIONAL ASSISTANCE BY MEMBERS WITH 15 YEARS OF ACTIVE DUTY SERVICE. (a) Transfer of Entitlement.--Subchapter II of chapter 30 of title 38, United States Code, is amended by adding at the end the following new section: ``Sec. 3020. Transfer of entitlement to basic educational assistance: individuals with 15 years of active duty service ``(a) An individual described in subsection (b) who is entitled to basic educational assistance under this subchapter may transfer, in whole or in part, such individual's entitlement to such assistance to the dependents specified in subsection (c). ``(b) An individual described in this subsection is any individual entitled to basic educational assistance under this subchapter who has completed not less than 15 years of service on active duty as a member of the Armed Forces. ``(c) An individual may transfer entitlement under this section as follows: ``(1) To the individual's spouse. ``(2) To one or more of the individual's children. ``(3) To a combination of the individuals referred to in paragraphs (1) and (2). ``(d) An individual transferring entitlement to basic educational assistance under this section shall-- ``(1) designate the dependent or dependents to whom such entitlement is being transferred and the percentage of such entitlement to be transferred to each such dependent; and ``(2) specify the period for which the transfer shall be effective for each dependent designated under paragraph (1). ``(e)(1) Subject to the time limitation for use of entitlement under section 3031 of this title, an individual may transfer entitlement under this section at any time without regard to whether the individual is a member of the Armed Forces when the transfer is executed. ``(2)(A) An individual transferring entitlement under this section may modify or revoke at any time the transfer of any unused portion of the entitlement so transferred. ``(B) The modification or revocation of the transfer of entitlement under this paragraph shall be made by the submittal of written notice of the action to the Secretary. ``(f)(1) The use of any entitlement to basic educational assistance transferred under this section shall be charged against the entitlement of the individual making the transfer at the rate of one month for each month of transferred entitlement that is used. ``(2) Except as provided under subsection (d)(2) and subject to paragraph (4), a dependent to whom entitlement is transferred under this section is entitled to basic educational assistance under this subchapter in the same manner and at the same rate as the individual from whom the entitlement was transferred. ``(3) The death of an individual transferring an entitlement under this section shall not affect the use of the entitlement by the individual to whom the entitlement is transferred. ``(4) The administrative provisions of this chapter (including the provisions set forth in section 3034(a)(1) of this title) shall apply to the use of entitlement transferred under this section, except that the dependent to whom the entitlement is transferred shall be treated as the eligible veteran for purposes of such provisions. ``(5) The purposes for which a dependent to whom entitlement is transferred under this section may use such entitlement shall include the pursuit and completion of the requirements of a secondary school diploma (or equivalency certificate). ``(f) In the event of an overpayment of basic educational assistance with respect to a dependent to whom entitlement is transferred under this section, the dependent and the individual making the transfer shall be jointly and severally liable to the United States for the amount of the overpayment for purposes of section 3685 of this title. ``(g) The Secretary shall prescribe regulations for purposes of this section. Such regulations shall specify the manner and effect of an election to modify or revoke a transfer of entitlement under subsection (e)(2), and shall specify the manner of the applicability of the administrative provisions referred to in subsection (e)(4) to a dependent to whom entitlement is transferred under this section.''. (b) Clerical Amendment.--The table of sections at the beginning of such chapter is amended by inserting after the item relating to section 3019 the following new item: ``3020. Transfer of entitlement to basic educational assistance: individuals with 15 years of active duty service.''. (c) Effective Date.--The amendments made by this section shall take effect six months after the date of the enactment of this Act. SEC. 4. EXTENSION OF TIME LIMITATION FOR USE OF ELIGIBILITY AND ENTITLEMENT. (a) All Volunteer Force Program.--Section 3031 of title 38, United States Code, is amended-- (1) by striking ``10-year period'' each place it appears (other than subsection (g)) and inserting ``20-year period''; and (2) in subsection (g), by striking ``the last day'' and all that follows through ``Act'' and inserting ``November 30, 2019,''. (b) Educational Assistance for Selected Reserve.--Section 16133(a) of title 10, United States Code, is amended by striking ``10-year period'' and inserting ``20-year period''. SEC. 5. BENEFIT FOR MEMBERS OF SELECTED RESERVE CALLED TO ACTIVE DUTY FOR MORE THAN ONE YEAR FOR CONTINGENCY OPERATION. (a) Increased Benefit Under Educational Assistance for Selected Reserve.--Section 16131 of title 10, United States Code, is amended by adding at the end the following: ``(j) In the case of a member of the Selected Reserve entitled to educational assistance under this chapter who, during the period referred to in subsection (a) with respect to the member, is called or ordered to, or retained on, active duty for or in support of a contingency operation, the rate of the educational assistance allowance applicable to the member is as follows: ``(1) If the member's aggregate period on active duty for or in support of a contingency operation is more than one year but less than two years-- ``(A) for each month of full-time pursuit of a program of education, an amount equal to the average of the amount otherwise applicable to the person under subsection (b)(1)(A) and the amount applicable to an individual under section 3015(b)(1) of title 38; ``(B) for each month of three-quarter-time pursuit of a program of education, an amount equal to three- quarters of the amount determined under subparagraph (A); ``(C) for each month of half-time pursuit of a program of education, an amount equal to three-quarters of the amount determined under subparagraph (A); and ``(D) for each month of less than half-time pursuit of a program of education, an appropriately reduced amount, as determined under regulations prescribed under subsection (b)(1)(D), subject to the limitation specified in that subsection. ``(2) If the member's aggregate period on active duty for or in support of a contingency operation is more than two years but less than three years, the amount that would be applicable to the member under section 3015(b) of title 38 were the member an individual described by that section. ``(3) If the member's aggregate period on active duty for or in support of a contingency operation is more than three years, the amount that would be applicable to the member under section 3015(a) of title 38 were the member an individual described by that section.''. (b) Effect of Active Duty on Entitlement for Basic Assistance for Service in Selected Reserve.--(1) Clause (ii) of section 3012(a)(1)(A) of title 38, United States Code, is amended to read as follows: ``(ii) subject to subsection (b) of this section and beginning within one year after completion of the service on active duty described in clause (i) of this clause-- ``(I) serves at least four years of continuous duty in the Selected Reserve during which the individual participates satisfactorily in training as required by the Secretary concerned; or ``(II) during continuous duty in the Selected Reserve during which the individual participates satisfactorily in training as required by the Secretary concerned, serves on active duty for or in support of a contingency operation (as that term is defined in section 101(a) of title 10) for an aggregate period of not less than one year; or''. (2) Section 3015(c) of that title is amended-- (A) in paragraph (1), by striking ``paragraph (1)'' and inserting ``paragraph (1) or (2)''; and (B) by adding at the end the following new paragraph: ``(3) Paragraph (1) of this subsection also applies to an individual entitled to an educational assistance allowance under section 3012 of this title who is described in subsection (a)(1)(A)(ii)(II) of that section.''.
summary: Montgomery GI Bill Improvements Act of 2001 - Amends Federal basic educational assistance provisions (the Montgomery GI Bill) to eliminate the pay reduction currently required of service members as a precondition to eligibility for benefits Permits certain service members to transfer their entitlement to benefits to their spouses or dependent children.Extends the period after discharge during which former service members may utilize their benefits.Increases benefits available to members of the Selected Reserve called to active duty as part of a contingency operation.