text: 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.''.
target: 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.
feat_title: A bill to amend titles 10 and 38, United States Code, to enhance the Montgomery GI Bill, and for other purposes.