38 U.S.C. § 3018C — Opportunity for certain VEAP partici-

Page 670 TITLE 38—VETERANS’ BENEFITS § 3018C vidual referred to in paragraph (1) of this sub- section shall remain in such account to make payments of benefits to such individual under section 3015(f) of this title. (Added Pub. L. 102–484, div. D, title XLIV, § 4404(a), Oct. 23, 1992, 106 Stat. 2704; amended Pub. L. 103–446, title XII, § 1201(d)(5), (e)(11), (f)(3), Nov. 2, 1994, 108 Stat. 4684, 4685, 4687; Pub. L. 105–368, title II, § 203(a), title X, § 1005(b)(6), Nov. 11, 1998, 112 Stat. 3326, 3365; Pub. L. 107–296, title XVII, § 1704(d), Nov. 25, 2002, 116 Stat. 2315; Pub. L. 116–283, div. A, title IX, § 926(a)(40), Jan. 1, 2021, 134 Stat. 3830.) Editorial Notes AMENDMENTS 2021—Subsec. (a)(1)(A), (2)(A). Pub. L. 116–283 sub- stituted ‘‘air, or space service’’ for ‘‘or air service’’. 2002—Subsec. (a)(1)(C), (2)(C). Pub. L. 107–296 sub- stituted ‘‘of Homeland Security’’ for ‘‘of Transpor- tation’’. 1998—Subsec. (a)(1)(B), (2)(B). Pub. L. 105–368, § 203(a), substituted ‘‘successfully completed (or otherwise re- ceived academic credit for)’’ for ‘‘successfully com- pleted’’. Subsec. (a)(2)(E). Pub. L. 105–368, § 1005(b)(6), which di- rected the substitution of ‘‘before October 23, 1993,’’ for ‘‘before the one-year period beginning on the date of the enactment of this section,’’, was executed by mak- ing the substitution for text which did not include the word ‘‘the’’ before the word ‘‘enactment’’, to reflect the probable intent of Congress. 1994—Subsec. (a)(2)(A). Pub. L. 103–446, § 1201(f)(3), sub- stituted ‘‘October 23, 1992,’’ for ‘‘the date of enactment of this section’’. Subsec. (d)(1). Pub. L. 103–446, § 1201(e)(11)(A), sub- stituted ‘‘(a)(2)(D) of this section’’ for ‘‘(a)(2)(D) of this subsection’’. Subsec. (d)(3). Pub. L. 103–446, § 1201(d)(5), (e)(11)(B), substituted ‘‘such account’’ for ‘‘such Account’’ and ‘‘section 3015(f) of this title’’ for ‘‘section 3015(e) of this chapter’’. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2002 AMENDMENT Amendment by Pub. L. 107–296 effective on the date of transfer of the Coast Guard to the Department of Homeland Security, see section 1704(g) of Pub. L. 107–296, set out as a note under section 101 of Title 10, Armed Forces. EFFECTIVE DATE OF 1998 AMENDMENT Amendment by section 203(a) of Pub. L. 105–368 effec- tive Oct. 1, 1998, see section 203(b) of Pub. L. 105–368, set out as a note under section 3011 of this title. § 3018C. Opportunity for certain VEAP partici- pants to enroll (a) Notwithstanding any other provision of law, an individual who— (1) is a participant on October 9, 1996, in the educational benefits program provided by chapter 32 of this title; (2) is serving on active duty (excluding the periods referred to in section 3202(1)(C) of this title) on such date; (3) before applying for benefits under this section, has completed the requirements of a secondary school diploma (or equivalency cer- tificate) or has successfully completed (or oth- erwise received academic credit for) the equiv- alent of 12 semester hours in a program of edu- cation leading to a standard college degree; (4) if discharged or released from active duty after the date on which the individual makes the election described in paragraph (5), is dis- charged or released therefrom with an honor- able discharge; and (5) during the one-year period beginning on October 9, 1996, makes an irrevocable election to receive benefits under this section in lieu of benefits under chapter 32 of this title, pursu- ant to procedures which the Secretary of each military department shall provide in accord- ance with regulations prescribed by the Sec- retary of Defense for the purpose of carrying out this section or which the Secretary of Homeland Security shall provide for such pur- pose with respect to the Coast Guard when it is not operating as a service in the Navy; may elect to become entitled to basic edu- cational assistance under this chapter. (b) With respect to an individual who makes an election under subsection (a) to become enti- tled to basic education assistance under this chapter— (1) the basic pay of the individual shall be reduced (in a manner determined by the Sec- retary of Defense) until the total amount by which such basic pay is reduced is $1,200; or (2) to the extent that basic pay is not so re- duced before the individual’s discharge or re- lease from active duty as specified in sub- section (a)(4), the Secretary shall collect from the individual an amount equal to the dif- ference between $1,200 and the total amount of reductions under paragraph (1), which shall be paid into the Treasury of the United States as miscellaneous receipts. (c)(1) Except as provided in paragraph (3), an individual who is enrolled in the educational benefits program provided by chapter 32 of this title and who makes the election described in subsection (a)(5) shall be disenrolled from such chapter 32 program as of the date of such elec- tion. (2) For each individual who is disenrolled from such program, the Secretary shall refund— (A) to the individual, as provided in section 3223(b) of this title and subject to subsection (b)(2) of this section, the unused contributions made by the individual to the Post-Vietnam Era Veterans Education Account established pursuant to section 3222(a) of this title; and (B) to the Secretary of Defense the unused contributions (other than contributions made under section 3222(c) of this title) made by such Secretary to the Account on behalf of such individual. (3) Any contribution made by the Secretary of Defense to the Post-Vietnam Era Veterans Edu- cation Account pursuant to subsection (c) of section 3222 of this title on behalf of any indi- vidual referred to in paragraph (1) shall remain in such account to make payments of benefits to such individual under section 3015(f) of this title. (d) The procedures provided in regulations re- ferred to in subsection (a) shall provide for no- tice of the requirements of subparagraphs (B), (C), and (D) of section 3011(a)(3) and of subpara- graph (A) of section 3012(a)(3) of this title. Re- ceipt of such notice shall be acknowledged in writing. Page 671 TITLE 38—VETERANS’ BENEFITS § 3018C (e)(1) A qualified individual (described in para- graph (2)) may make an irrevocable election under this subsection, during the one-year pe- riod beginning on the date of the enactment of this subsection, to become entitled to basic edu- cational assistance under this chapter. Such an election shall be made in the same manner as elections made under subsection (a)(5). (2) A qualified individual referred to in para- graph (1) is an individual who meets each of the following requirements: (A) The individual was a participant in the educational benefits program under chapter 32 of this title on or before October 9, 1996. (B) The individual has continuously served on active duty since October 9, 1996 (excluding the periods referred to in section 3202(1)(C) of this title), through at least April 1, 2000. (C) The individual meets the requirements of subsection (a)(3). (D) The individual, when discharged or re- leased from active duty, is discharged or re- leased therefrom with an honorable discharge. (3)(A) Subject to the succeeding provisions of this paragraph, with respect to a qualified indi- vidual who makes an election under paragraph (1) to become entitled to basic education assist- ance under this chapter— (i) the basic pay of the qualified individual shall be reduced (in a manner determined by the Secretary concerned) until the total amount by which such basic pay is reduced is $2,700; and (ii) to the extent that basic pay is not so re- duced before the qualified individual’s dis- charge or release from active duty as specified in subsection (a)(4), at the election of the qualified individual— (I) the Secretary concerned shall collect from the qualified individual; or (II) the Secretary concerned shall reduce the retired or retainer pay of the qualified individual by, an amount equal to the difference between $2,700 and the total amount of reductions under clause (i), which shall be paid into the Treasury of the United States as miscella- neous receipts. (B)(i) The Secretary concerned shall provide for an 18-month period, beginning on the date the qualified individual makes an election under paragraph (1), for the qualified individual to pay that Secretary the amount due under subpara- graph (A). (ii) Nothing in clause (i) shall be construed as modifying the period of eligibility for and enti- tlement to basic education assistance under this chapter applicable under section 3031 of this title. (C) The provisions of subsection (c) shall apply to qualified individuals making elections under this subsection in the same manner as they ap- plied to individuals making elections under sub- section (a)(5). (4) With respect to qualified individuals re- ferred to in paragraph (3)(A)(ii), no amount of educational assistance allowance under this chapter shall be paid to the qualified individual until the earlier of the date on which— (A) the Secretary concerned collects the ap- plicable amount under subclause (I) of such paragraph; or (B) the retired or retainer pay of the quali- fied individual is first reduced under subclause (II) of such paragraph. (5) The Secretary, in conjunction with the Secretary of Defense, shall provide for notice to participants in the educational benefits program under chapter 32 of this title of the opportunity under this subsection to elect to become enti- tled to basic educational assistance under this chapter. (Added Pub. L. 104–275, title I, § 106(a), Oct. 9, 1996, 110 Stat. 3327; amended Pub. L. 105–114, title IV, § 401(c), Nov. 21, 1997, 111 Stat. 2293; Pub. L. 105–368, title II, § 203(a), Nov. 11, 1998, 112 Stat. 3326; Pub. L. 106–398, § 1 [[div. A], title XVI, § 1601], Oct. 30, 2000, 114 Stat. 1654, 1654A–357; Pub. L. 106–419, title I, § 104(a)–(c)(1), Nov. 1, 2000, 114 Stat. 1827, 1828; Pub. L. 107–14, § 7(e)(1), June 5, 2001, 115 Stat. 33; Pub. L. 107–296, title XVII, § 1704(d), Nov. 25, 2002, 116 Stat. 2315; Pub. L. 107–330, title III, § 308(g)(9), Dec. 6, 2002, 116 Stat. 2829.) Editorial Notes REFERENCES IN TEXT The date of the enactment of this subsection, referred to in subsec. (e)(1), is the date of enactment of Pub. L. 106–419, which was approved Nov. 1, 2000. AMENDMENTS 2002—Subsec. (a)(5). Pub. L. 107–296 substituted ‘‘of Homeland Security’’ for ‘‘of Transportation’’. Subsec. (e)(2)(B). Pub. L. 107–330 struck out comma after ‘‘April’’. 2001—Subsec. (b). Pub. L. 107–14 struck out ‘‘or (e)’’ after ‘‘subsection (a)’’ in introductory provisions. 2000—Pub. L. 106–419, § 104(c)(1), provided that as of the enactment of Pub. L. 106–419, the amendments made by Pub. L. 106–398, § 1 [[div. A], title XVI, § 1601], were deemed for all purposes not to have taken effect and that Pub. L. 106–398, § 1 [[div. A], title XVI, § 1601], ceased to be in effect. See Amendment notes below. Subsec. (b). Pub. L. 106–419, § 104(b), substituted ‘‘sub- section (a) or (e)’’ for ‘‘subsection (a)’’ in introductory provisions. Pub. L. 106–398, § 1 [[div. A], title XVI, § 1601(b)], which substituted ‘‘subsection (a) or (e)’’ for ‘‘subsection (a)’’ in introductory provisions, was terminated by Pub. L. 106–419, § 104(c)(1). See Amendment note above. Subsec. (e). Pub. L. 106–419, § 104(a), added subsec. (e). Pub. L. 106–398, § 1 [[div. A], title XVI, § 1601(a)], which added a subsec. (e) substantially identical to the sub- sec. (e) added by Pub. L. 106–419, § 104(a), was termi- nated by Pub. L. 106–419, § 104(c)(1). See Amendment notes above. 1998—Subsec. (a)(3). Pub. L. 105–368 substituted ‘‘suc- cessfully completed (or otherwise received academic credit for)’’ for ‘‘successfully completed’’. 1997—Subsec. (a)(1). Pub. L. 105–114, § 401(c)(1), sub- stituted ‘‘October 9, 1996,’’ for ‘‘the date of the enact- ment of the Veterans’ Benefits Improvements Act of 1996’’. Subsec. (a)(4). Pub. L. 105–114, § 401(c)(2), substituted ‘‘after the date on which the individual makes the elec- tion described’’ for ‘‘during the one-year period speci- fied’’. Subsec. (a)(5). Pub. L. 105–114, § 401(c)(3), substituted ‘‘October 9, 1996’’ for ‘‘the date of the enactment of the Veterans’ Benefits Improvements Act of 1996’’. Page 672 TITLE 38—VETERANS’ BENEFITS § 3019 Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2002 AMENDMENT Amendment by Pub. L. 107–296 effective on the date of transfer of the Coast Guard to the Department of Homeland Security, see section 1704(g) of Pub. L. 107–296, set out as a note under section 101 of Title 10, Armed Forces. EFFECTIVE DATE OF 1998 AMENDMENT Amendment by Pub. L. 105–368 effective Oct. 1, 1998, see section 203(b) of Pub. L. 105–368, set out as a note under section 3011 of this title. TREATMENT OF CERTAIN CONTRIBUTIONS Pub. L. 107–14, § 7(e)(2), June 5, 2001, 115 Stat. 33, pro- vided that: ‘‘Any amount collected under section 3018C(b) of title 38, United States Code (whether by re- duction in basic pay under paragraph (1) of that sec- tion, collection under paragraph (2) of that section, or both), with respect to an individual who enrolled in basic educational assistance under section 3018C(e) of that title, during the period beginning on November 1, 2000, and ending on the date of the enactment of this Act [June 5, 2001], shall be treated as an amount col- lected with respect to the individual under section 3018C(e)(3)(A) of that title (whether as a reduction in basic pay under clause (i) of that section, a collection under clause (ii) of that section, or both) for basic edu- cational assistance under section 3018C of that title.’’ § 3019. Tutorial assistance (a) An individual entitled to an educational assistance allowance under this chapter shall also be entitled to benefits provided an eligible veteran under section 3492 of this title, subject to the conditions applicable to an eligible vet- eran under such section. (b) The amount of such benefits payable under this section may not exceed $100 per month, for a maximum of twelve months, or until a max- imum of $1,200 is utilized. This amount is in ad- dition to the amount of educational assistance allowance payable to the individual under this chapter. (c)(1) An individual’s period of entitlement to educational assistance under this chapter shall be charged only with respect to the amount of tutorial assistance paid to the individual under this section in excess of $600. (2) An individual’s period of entitlement to educational assistance under this chapter shall be charged at the rate of one month for each amount of assistance paid to the individual under this section in excess of $600 that is equal to the amount of the monthly educational as- sistance allowance which the individual is oth- erwise eligible to receive for full-time pursuit of an institutional course under this chapter. (Added Pub. L. 100–689, title I, § 107(a)(1), Nov. 18, 1988, 102 Stat. 4167, § 1419; renumbered § 3019 and amended Pub. L. 102–83, § 5(a), (c)(1), Aug. 6, 1991, 105 Stat. 406.) Editorial Notes AMENDMENTS 1991—Pub. L. 102–83, § 5(a), renumbered section 1419 of this title as this section. Subsec. (a). Pub. L. 102–83, § 5(c)(1), substituted ‘‘3492’’ for ‘‘1692’’. § 3020. Authority to transfer unused education benefits to family members for career service members (a) IN GENERAL.—Subject to the provisions of this section, the Secretary of Defense may au- thorize the Secretary concerned, to promote re- cruitment and retention of members of the Armed Forces, to permit an individual described in subsection (b) who is entitled to basic edu- cational assistance under this subchapter to elect to transfer to one or more of the depend- ents specified in subsection (c) the unused por- tion of entitlement to such assistance, subject to the limitation under subsection (d). (b) ELIGIBLE INDIVIDUALS.—An individual re- ferred to in subsection (a) is any member of the Armed Forces— (1) who, while serving on active duty or as a member of the Selected Reserve at the time of the approval by the Secretary concerned of the member’s request to transfer entitlement to basic educational assistance under this sec- tion, has completed six years of service in the Armed Forces and enters into an agreement to serve at least four more years as a member of the Armed Forces; or (2) as determined in regulations pursuant to subsection (k). (c) ELIGIBLE DEPENDENTS.—An individual ap- proved to transfer an entitlement to basic edu- cational assistance under this section may transfer the individual’s entitlement as follows: (1) To the individual’s spouse. (2) To one or more of the individual’s chil- dren. (3) To a combination of the individuals re- ferred to in paragraphs (1) and (2). (d) LIMITATION ON MONTHS OF TRANSFER.—(1) An individual approved to transfer an entitle- ment to basic educational assistance under this section may transfer any unused entitlement to one or more of the dependents specified in sub- section (c). (2) The total number of months of entitlement transferred by an individual under this section may not exceed 36 months. The Secretary of De- fense may prescribe regulations that would limit the months of entitlement that may be transferred under this section to no less than 18 months. (e) DESIGNATION OF TRANSFEREE.—An indi- vidual transferring an entitlement to basic edu- cational assistance under this section shall— (1) designate the dependent or dependents to whom such entitlement is being transferred; (2) designate the number of months of such entitlement to be transferred to each such de- pendent; and (3) specify the period for which the transfer shall be effective for each dependent des- ignated under paragraph (1). (f) TIME FOR TRANSFER; REVOCATION AND MODI- FICATION.—(1) Subject to the time limitation for use of entitlement under section 3031 of this title, an individual approved to transfer entitle- ment to basic educational assistance under this section may transfer such entitlement at any time after the approval of the individual’s re- quest to transfer such entitlement only while