SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Servicemembers Educational 
Opportunity Act of 1999''.

SEC. 2. ENHANCED BENEFITS UNDER MONTGOMERY GI BILL FOR FOUR YEARS OF 
              ACTIVE-DUTY SERVICE.

    (a) In General.--Chapter 30 of title 38, United States Code, is 
amended by adding at the end the following new subchapter:

            ``SUBCHAPTER V--ENHANCED EDUCATIONAL ASSISTANCE

``Sec. 3041. Enhanced educational assistance entitlement
    ``(a) Entitlement.--An eligible individual is entitled to enhanced 
educational assistance under this subchapter.
    ``(b) Eligible Individual Defined.--For purposes of this 
subchapter, the term `eligible individual' means an individual who 
meets the service requirement described in subsection (c), who meets 
the education completion requirements described in subsection (d), and 
whose status after completion of such service is described in section 
3011(a)(3) of this title. Such term does not include an individual 
described in paragraph (1) or (2) of section 3011(c) of this title.
    ``(c) Service Requirement.--(1) The service requirement referred to 
in subsection (b) is as follows:
            ``(A) After September 30, 1999, the individual--
                    ``(i) first enters on active duty;
                    ``(ii) reenlists or extends an enlistment on active 
                duty as a member of the Armed Forces; or
                    ``(iii) in the case of an officer, continues to 
                serve on active duty after that date.
            ``(B) From the date of such entry, reenlistment, extension, 
        or continuation, as the case may be, the individual--
                    ``(i) serves a continuous period of active duty of 
                at least four years in the Armed Forces; or
                    ``(ii) serves on active duty in the Armed Forces 
                and is discharged or released from active duty--
                            ``(I) as provided in subclause (I) of 
                        section 3011(a)(1)(A)(ii) of this title;
                            ``(II) for the convenience of the 
                        Government, after having completed not less 
                        that 42 months of continuous active duty; or
                            ``(III) as provided in subclause (III) of 
                        section 3011(a)(1)(A)(ii) of this title.
    ``(2) In determining service under paragraph (1), the following 
rules apply:
            ``(A) Any period of service described in paragraph (2) or 
        (3) of section 3011(d) of this title that applies to an 
        eligible individual under this section shall not be considered 
        a part of the individual's period of active duty.
            ``(B) A member described in paragraph (2) of section 
        3011(f) of this title who serves the periods of active duty 
        referred to in such paragraph shall be deemed to have served a 
        continuous period of active duty the length of which is the 
        aggregate length of the periods of active duty referred to in 
        such paragraph.
            ``(C) Subsections (g) and (h) of section 3011 of this title 
        apply with respect to an eligible individual under this section 
        in the same manner as they apply to an individual under section 
        3011 of this title.
    ``(d) Education Completion Requirements.--The education completion 
requirement referred to in subsection (b) is that the individual shall 
have completed the requirements of a secondary school diploma (or 
equivalency certificate) by not later than the original ending date of 
the individual's period of active duty described in subsection (c)(1) 
regardless of whether the individual is discharged or released from 
active duty on such date. An individual may meet the requirement of 
this subsection by having been granted credit for the equivalent of 12 
semester hours in a program of education leading to a standard college 
degree before the end of the individual's period of active duty 
described in subsection (c)(1).
    ``(e) Election of Basic Educational Assistance.--(1) An eligible 
individual entitled to enhanced educational assistance under this 
subchapter may elect (in a form and manner prescribed by the Secretary) 
to receive basic educational assistance under subchapter II in lieu of 
such enhanced educational assistance for an enrollment period. Such an 
election shall be made by not later than 30 days before the beginning 
of the enrollment period.
    ``(2) An eligible individual may revoke an election made pursuant 
to paragraph (1), but in no case may such revocation be made later than 
30 days before the beginning of the enrollment period.
``Sec. 3042. Duration of enhanced educational assistance
    ``(a) In General.--Subject to section 3695 of this title and except 
provided in subsection (b), each individual entitled to enhanced 
educational assistance under section 3041 of this title is entitled to 
a monthly enhanced educational assistance allowance under this 
subchapter for a period or periods not to exceed a total of 36 months 
(or the equivalent thereof in part-time enhanced educational 
assistance).
    ``(b) Special Rule for Certain Early Separations.--Subject to 
section 3695 of this title, in the case of an individual described in 
subclause (I) or (III) of section 3041(c)(1)(B)(ii) who does not serve 
a continuous period of active duty of at least four years in the Armed 
Forces (as described in section 3041(c)(1)(B)(i) of this title), the 
individual is entitled to one month of enhanced educational assistance 
benefits under this subchapter (not to exceed a total of 36 months (or 
the equivalent thereof in part-time enhanced educational assistance)) 
for each month of continuous active duty served by the individual 
beginning with the date on which the entry on active duty, 
reenlistment, enlistment extension, or continuation applicable to that 
individual under section 3041(c)(1)(A) of this title begins.
``Sec. 3043. Payment of educational expenses
    ``(a) In General.--(1) Subject to paragraph (2), the Secretary 
shall pay to the educational institution providing a course under an 
approved program of education to an eligible individual under this 
subchapter who is enrolled in the course an amount equal to 90 percent 
of the actual cost of tuition and fees otherwise payable by the 
individual.
    ``(2) Such cost may not exceed the amount charged to similarly 
circumstanced nonveterans.
    ``(b) Stipend; Costs of Books and Supplies.--The Secretary shall 
pay to each eligible individual under this subchapter who is pursuing 
an approved program of education--
            ``(1) a stipend as provided in section 3044 of this title; 
        and
            ``(2) in accordance with regulations prescribed by the 
        Secretary, a sum equal to the reasonable cost of books and 
        supplies determined to be required by similarly circumstanced 
        nonveterans.
    ``(c) Inclusion in Income for Eligibility Determinations for 
Federal Educational Loans.--For purposes of determining untaxed income 
and benefits for eligibility for student assistance under the 
provisions of title IV of the Higher Education Act of 1965 (20 U.S.C. 
1070 et seq.), amounts payable with respect to an eligible individual 
under subsections (a) and (b)(2) shall not be considered veterans 
education benefits for purposes of section 480(vv) of such Act (20 
U.S.C. 1087(vv)).
``Sec. 3044. Amount of stipend
    ``(a) In General.--Except as provided in section 3042 of this 
title, the stipend under this subchapter shall be paid at a monthly 
rate (as that rate may be increased pursuant to subsection (b)) as 
follows:
            ``(1) At the monthly rate of $600 for an approved program 
        of education pursued on a full-time basis.
            ``(2) At the monthly rate of $450 for an approved program 
        of education pursued on a three-quarter-time basis.
            ``(3) At the monthly rate of $300 for an approved program 
        of education pursued on a half-time basis.
            ``(4) At the monthly rate of $150 for an approved program 
        of education pursued on less than a half-time basis.
    ``(b) Adjustment for Inflation.--With respect to any fiscal year 
beginning after fiscal year 2000, the Secretary shall increase the rate 
paid under subsection (a)(1) for the previous fiscal year by the 
percentage applicable under section 3015(g) of this title.
``Sec. 3045. Tutorial assistance
    ``An individual entitled to an enhanced educational assistance 
allowance under this subchapter shall be entitled to benefits provided 
an individual under section 3019 of this title, subject to the 
conditions provided in such section.''.
    (b) Conforming Amendments.--(1) Section 3002 of such title is 
amended by inserting at the end the following new paragraph:
    ``(9) The term `enhanced educational assistance' means educational 
assistance provided under subchapter V.''.
    (2) Section 3011 of such title is amended in subsections (f)(1) and 
(g) by striking ``chapter'' each place it appears and inserting 
``subchapter''.
    (3) Section 3018 of such title is amended by striking ``educational 
assistance under this chapter'' each place it appears and inserting 
``educational assistance under this subchapter''.
    (4) Section 3018A(a) of such title is amended by striking 
``education assistance under this chapter'' and inserting ``educational 
assistance under this subchapter''.
    (5) Section 3018B of such title is amended by striking ``education 
assistance under this chapter'' each place it appears and inserting 
``educational assistance under this subchapter''.
    (6) Section 3018C of such title is amended--
            (A) in subsection (a), by striking ``educational assistance 
        under this chapter'' and inserting ``educational assistance 
        under this subchapter''; and
            (B) in subsection (b), by striking ``education assistance 
        under this chapter'' and inserting ``educational assistance 
        under this subchapter''.
    (7) Section 3019 of such title is amended by striking out 
``chapter'' each place it appears and inserting in lieu thereof 
``subchapter''.
    (8) Section 3031 of such title is amended--
            (A) in subsection (f), by inserting ``or 3042 of this 
        title'' after ``section 3013'' each place it appears; and
            (B) in subsection (g), by inserting ``or 
        3031(c)(1)(B)(ii)(III)'' after ``section 
        3011(a)(1)(A)(ii)(III)''.
    (9) Section 3032(e)(3) of such title is amended by inserting ``, or 
section 3044(a)(1)'' after ``section 3015''.
    (c) Clerical Amendment.--The table of sections at the beginning of 
chapter 30 of title 38, United States Code, is amended by adding at the 
end the following new items:

            ``SUBCHAPTER V--ENHANCED EDUCATIONAL ASSISTANCE

``3041. Enhanced educational assistance entitlement.
``3042. Duration of enhanced educational assistance.
``3043. Payment of educational expenses.
``3044. Amount of stipend.
``3045. Tutorial assistance.''.

SEC. 3. REPEALS OF PAY REDUCTION AND ELECTION OF BENEFITS.

    (a) Repeals.--
            (1) Active duty program.--(A) Section 3011 of title 38, 
        United States Code, is amended--
                    (i) by striking subsection (b); and
                    (ii) in subsection (c), by striking out paragraph 
                (1) and redesignating paragraphs (2) and (3) as 
                paragraphs (1) and (2), respectively.
            (B) Section 3012 of such title is amended--
                    (i) by striking subsection (c); and
                    (ii) in subsection (d), by striking out paragraph 
                (1) and redesignating paragraphs (2) and (3) as 
                paragraphs (1) and (2), respectively.
            (2) Opportunities to withdraw election not to enroll.--(A) 
        Section 3016(a)(1) of such title is amended by striking ``, and 
        does not make an election under section 3011(c)(1) or section 
        3012(d)(1)''.
            (B) Sections 3018A, 3018B, and 3018C of such 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 after 
September 30, 1999. Any obligation of such individual under subsection 
(b), as of September 30, 1999, shall be deemed to be fully satisfied as 
of such date.''.
            (3) Termination of 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 after September 
        30, 1999, and any obligation of such individual under such 
        subsections, as the case may be, as of September 30, 1999, 
        shall be deemed to be fully satisfied as of such date.
    (b) Education Outreach Services to Members of the Armed Forces.--
Section 3034(e)(1) of title 38, United States Code, is amended to read 
as follows:
    ``(e)(1) Not later than one year after an individual initially 
enters on active duty as a member of the Armed Forces, and at such 
additional times as the Secretary determines appropriate, the Secretary 
shall furnish the individual the information described in paragraph 
(2).''.
    (c) Effective Date.--The amendments made by this section shall take 
effect on October 1, 1999, 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.
Servicemembers Educational Opportunity Act of 1999 - Amends Federal basic educational assistance provisions (the Montgomery GI Bill) to authorize enhanced educational assistance to a member of the armed forces who, after September 30, 1999:  (1) first enters on active duty; (2) reenlists or continues to serve on active duty; (3) serves a continuous period of active duty of four years; or (4) serves and is discharged or released for a service-connected disability, at the convenience of the Government (after serving at least 42 months of such duty), or due to a reduction in force.  Requires each such member to also have completed the requirements of a secondary school diploma or its equivalent by no later than the original ending date before such extension of duty.  Limits to 36 months the period for such enhanced assistance, with a special rule for certain early separations. Requires the payment of educational expenses under such program, including 90 percent of the costs of tuition and fees, and reasonable costs of books, and other supplies.  Requires such amounts to be considered income for purposes of eligibility for Federal educational loans or grants under the Higher Education Act of 1965. Provides:  (1) a monthly stipend for approved programs of education, with different rates for programs pursued on a full-time, three quarter-time, or half-time basis; and (2) tutorial assistance. 
(Sec. 3) Repeals, with respect to such assistance:  (1) a required monthly reduction in pay for individuals who do not elect to participate in such assistance program; and (2) a provision authorizing individuals to elect not to receive such assistance.
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