S.Amdt. 4800

1. Adds SEC. __. PILOT PROGRAM ON TRANSFERABILITY OF POST-9/11 VETERANS EDUCATIONAL ASSISTANCE BY CERTAIN MEMBERS OF THE ARMED FORCES wherever appropriate

   Adds a section

   Inserted: SEC. __. PILOT PROGRAM ON TRANSFERABILITY OF POST-9/11 VETERANS EDUCATIONAL ASSISTANCE BY CERTAIN MEMBERS OF THE ARMED FORCES.

   Inserted: (a) Pilot Program Required.--The Secretary of Defense may carry out a pilot program to assess the feasability and advisability, for purposes of enhancing the recruitment and retention of members of the Armed Forces, of authorizing the Secretaries of the military departments to permit an individual described in subsection (c) who is entitled to educational assistance under chapter 33 of title 38, United States Code (as added by section ___ of this Act), to elect to transfer to one or more of the dependents specified in subsection (d) a portion of such individual's entitlement to such assistance, subject to the limitation in subsection (e).

   Inserted: (b) Duration of Pilot Program.--An individual may not be approved to transfer educational assistance under the pilot program under this section after the end of the two-year period beginning on the date of the commencement of the pilot program.

   Inserted: (c) Eligible Individuals.--An individual described in this subsection is a member of the Armed Forces who, at the time of the approval by the Secretary of the military department concerned of the individual's request to transfer entitlement to educational assistance under the pilot program under this section--

   Inserted: (1) has completed at least four years of service in the Armed Forces;

   Inserted: (2) meets such other requirements as the Secretary of Defense may prescribe for purposes of this section; and

   Inserted: (3) enters into an agreement to serve at least six more years as a member of the Armed Forces.

   Inserted: (d) Eligible Dependents.--An individual approved to transfer an entitlement to educational assistance under the pilot program under this section may transfer the individual's entitlement as follows:

   Inserted: (1) To the individual's spouse.

   Inserted: (2) To one or more of the individual's children.

   Inserted: (3) To a combination of the individuals referred to in paragraphs (1) and (2).

   Inserted: (e) Limitation on Months of Transfer.--

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   Inserted: (1) In general.--Except as provided in paragraph (2), the total number of months of entitlement transferrable by an individual under the pilot program under this section may not exceed 18 months.

   Inserted: (2) Additional months transferrable after certain service.--The total number of months of entitlement transferrable under the pilot program by an individual who serves at least 10 years of service in the Armed Forces may not exceed 36 months.

   Inserted: (f) Designation of Transferee.--An individual transferring entitlement to educational assistance under the pilot program under this section shall--

   Inserted: (1) designate the dependent or dependents to whom such entitlement is being transferred;

   Inserted: (2) designate the number of months of such entitlement to be transferred to each such dependent; and

   Inserted: (3) specify the period for which the transfer shall be effective for each dependent designated under paragraph (1).

   Inserted: (g) Time for Transfer; Revocation and Modification.--

   Inserted: (1) Time for transfer.--Subject to the time limitation for use of entitlement under section 3321 of title 38, United State Code (as so added), an individual approved to transfer entitlement to educational assistance under the pilot program under this section may transfer such entitlement at any time after the approval of the individual's request to transfer such entitlement without regard to whether the individual is a member of the Armed Forces when the transfer is executed or the authority for approvals of transfers of entitlement has ceased under subsection (b).

   Inserted: (2) Modification or revocation.--

   Inserted: (A) In general.--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.

   Inserted: (B) Notice.--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 both the Secretary of the military department concerned and the Secretary of Veterans Affairs.

   Inserted: (3) Prohibition on treatment of transferred entitlement as marital property.--Entitlement transferred under this section may not be treated as marital property, or the asset of a marital estate, subject to division in a divorce or other civil proceeding.

   Inserted: (h) Commencement of Use.--A dependent to whom entitlement to educational assistance is transferred under the pilot program under this section may not commence the use of the transferred entitlement until--

   Inserted: (1) in the case of entitlement transferred to either a spouse or a child, the completion by the individual making the transfer of four years of service in the Armed Forces; and

   Inserted: (2) in the case of entitlement transferred to a child--

   Inserted: (A) the completion by the child of the requirements of a secondary school diploma (or equivalency certificate); or

   Inserted: (B) the attainment by the child of 18 years of age.

   Inserted: (i) Additional Administrative Matters.--

   Inserted: (1) Nature of transferred entitlement.--Except as provided under subsection (f)(2) and subject to the provisions of this subsection, a dependent to whom entitlement is transferred under the pilot program this section is entitled to educational assistance under chapter 33 of title 38, United States Code (as so added), in the same manner as the individual from whom the entitlement was transferred.

   Inserted: (2) Rate of payment.--Educational assistance payable to a dependent to whom entitlement is transferred under this section shall be payable at the same rate as such entitlement would otherwise be payable under chapter 33 of title 38, United States Code (as so added), to the individual making the transfer.

   Inserted: (3) Use.--The use of any entitlement to 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 (as determined pursuant to regulations prescribed by the Secretary of Veterans Affairs for purposes of this section) by the dependent concerned.

   Inserted: (4) Death of transferror.--The death of an individual transferring entitlement under this section shall not affect the use of the entitlement by the dependent to whom the entitlement is transferred.

   Inserted: (5) Limitation on age of use by child transferees.--A child to whom entitlement is transferred under this section may not use any entitlement so transferred after attaining the age of 26 years.

   Inserted: (6) Scope of use by transferees.--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).

   Inserted: (7) Additional administrative provisions.--The administrative provisions of chapter 33 of title 38, United States Code (as so added), 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 individual for purposes of such provisions.

   Inserted: (j) Overpayment.--

   Inserted: (1) Joint and several liability.--In the event of an overpayment of educational assistance with respect to a dependent to whom entitlement is transferred under the pilot program 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 title 38, United States Code.

   Inserted: (2) Failure to complete service agreement.--

   Inserted: (A) In general.--Except as provided in subparagraph (B), if an individual transferring entitlement under this section fails to complete the service agreed to by the individual under subsection (c)(3) in accordance with the terms of the agreement of the individual under that subsection, the amount of any transferred entitlement under this section that is used by a dependent of the individual as of the date of such failure shall be treated as an overpayment of educational assistance under paragraph (1).

   Inserted: (B) Exception.--Subparagraph (A) shall not apply in the case of an individual who fails to complete service agreed to by the individual--

   Inserted: (i) by reason of the death of the individual; or

   Inserted: (ii) for a reason referred to in section 3311(c)(4) of this title (as so added).

   Inserted: (k) Regulations.--The Secretary of Veterans Affairs shall prescribe regulations for purposes of the pilot program under this section. Such regulations shall specify the following:

   Inserted: (1) The manner and effect of an election to modify or revoke a transfer of entitlement under subsection (g)(2).

   Inserted: (2) The manner of determining the rates of educational assistance payable to dependents for purposes of subsection (i)(2) and of determining the charge against entitlement of transferring individuals for educational assistance utilized by dependents for purposes of subsection (i)(3).

   Inserted: (3) The manner of the applicability of the administrative provisions referred to in subsection (i)(7) to a dependent to whom entitlement is transferred under this section.

   Inserted: (l) Report.--

   Inserted: (1) In general.--Not later than 180 days after the cessation under subsection (b)(2) of approvals for transfer of entitlement under the pilot program under this section, the Secretary of Defense shall submit to Congress a report on the pilot program.

   Inserted: (2) Elements.--The report required by paragraph (1) shall include the following:

   Inserted: (A) A description of the use of the authorities under the pilot program by the Secretaries of the military departments.

   Inserted: (B) An assessment of the utility of the authorities under the pilot program in enhancing recruitment and retention of members of the Armed Forces.

   Inserted: (C) Such recommendations for legislative or administrative action as the Secretary considers appropriate in light of the pilot program.

   Inserted: (m) Secretary of a Military Department Defined.--In this section, the term "Secretary of a military department", with respect to the Coast Guard, means the Secretary of Defense or the Secretary of Homeland Security when the Coast Guard is not operating as a service in the Navy.

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As printed