(a) In General.—
Subject to the provisions of this section, each Secretary concerned may, for the purpose of enhancing recruitment and retention of members of the Armed Forces with critical military skills and at such Secretarys sole discretion, permit an individual described in subsection (b) who is entitled to basic educational assistance under this subchapter to elect to transfer to one or more of the dependents specified in subsection (c) a portion of such individuals entitlement to such assistance, subject to the limitation under subsection (d).
(b) Eligible Individuals.— An individual referred to in subsection (a) is any member of the Armed Forces who, at the time of the approval by the Secretary concerned of the members request to transfer entitlement to basic educational assistance under this section
(1) has completed six years of service in the Armed Forces;
(2) either
(A) has a critical military skill designated by the Secretary concerned for purposes of this section; or
(B) is in a military specialty designated by the Secretary concerned for purposes of this section as requiring critical military skills; and
(3) enters into an agreement to serve at least four more years as a member of the Armed Forces.
(c) Eligible Dependents.— An individual approved to transfer an entitlement to basic educational assistance under this section may transfer the individuals entitlement as follows:
(1) To the individuals spouse.
(2) To one or more of the individuals children.
(3) To a combination of the individuals referred to in paragraphs (1) and (2).
(d) Limitation on Months of Transfer.—
The total number of months of entitlement transferred by an individual under this section may not exceed 18 months.
(e) Designation of Transferee.— An individual transferring an entitlement to basic educational 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 dependent; and
(3) specify the period for which the transfer shall be effective for each dependent designated under paragraph (1).
(f) Time for Transfer; Revocation and Modification.—
(1) Subject to the time limitation for use of entitlement under section
3031 of this title, an individual approved to transfer entitlement to basic educational assistance under this section may transfer such entitlement at any time after the approval of the individuals request to transfer such entitlement 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 both the Secretary concerned and the Secretary of Veterans Affairs.
(g) Commencement of Use.— A dependent to whom entitlement to basic educational assistance is transferred under this section may not commence the use of the transferred entitlement until
(1) in the case of entitlement transferred to a spouse, the completion by the individual making the transfer of six years of service in the Armed Forces; or
(2) in the case of entitlement transferred to a child, both
(A) the completion by the individual making the transfer of 10 years of service in the Armed Forces; and
(B) either
(i) the completion by the child of the requirements of a secondary
school diploma (or equivalency certificate); or
(ii) the attainment by the child of 18 years of age.
(h) Additional Administrative Matters.—
(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 (e)(2) and subject to paragraphs (5) and (6), a dependent to whom entitlement is transferred under this section is entitled to basic educational assistance under this subchapter in the same manner as the individual from whom the entitlement was transferred.
(3)
(A) Subject to subparagraph (B), the monthly rate of educational assistance payable to a dependent to whom entitlement is transferred under this section shall be the monthly amount payable under sections
3015 and
3022 of this title to the individual making the transfer.
(B) The monthly rate of assistance payable to a dependent under subparagraph (A) shall be subject to the provisions of section
3032 of this title, except that the provisions of subsection (a)(1) of that section shall not apply even if the individual making the transfer to the dependent under this section is on active duty during all or any part of enrollment period of the dependent in which such entitlement is used.
(4) The death of an individual transferring an entitlement under this section shall not affect the use of the entitlement by the dependent to whom the entitlement is transferred.
(5) Notwithstanding section
3031 of this title, a child to whom entitlement is transferred under this section may not use any entitlement so transferred after attaining the age of 26 years.
(6) 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.
(7) 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).
(i) Overpayment.—
(1) 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.
(2) Except as provided in paragraph (3), if an individual transferring entitlement under this section fails to complete the service agreed to by the individual under subsection (b)(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 basic educational assistance under paragraph (1).
(3) Paragraph (2) shall not apply in the case of an individual who fails to complete service agreed to by the individual
(A) by reason of the death of the individual; or
(j) Approvals of Transfer Subject to Availability of Appropriations.— The Secretary concerned may approve transfers of entitlement to basic educational assistance under this section in a fiscal year only to the extent that appropriations for military personnel are available in that fiscal year for purposes of making deposits in the Department of Defense Education Benefits Fund under section
2006 of title
10 in that fiscal year to cover the present value of future benefits payable from the Fund for the Department of Defense portion of payments of basic educational assistance attributable to increased usage of benefits as a result of such transfers of entitlement in that fiscal year.
(k) Regulations.—
The Secretary of Defense 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 (f)(2) and shall specify the manner of the applicability of the administrative provisions referred to in subsection (h)(5) to a dependent to whom entitlement is transferred under this section.
(l) Annual Report.—
(1) Not later than January 31 each year (beginning in 2003), the Secretary of Defense shall submit to the Committees on Armed Services and the Committees on Veterans Affairs of the Senate and House of Representatives a report on the transfers of entitlement to basic educational assistance under this section that were approved by each Secretary concerned during the preceding fiscal year.
(2) Each report shall set forth
(A) the number of transfers of entitlement under this section that were approved by such Secretary during the preceding fiscal year; or
(B) if no transfers of entitlement under this section were approved by such Secretary during that fiscal year, a justification for such Secretarys decision not to approve any such transfers of entitlement during that fiscal year.
(m) Secretary Concerned Defined.— Notwithstanding section
101 (25) of this title, in this section, the term Secretary concerned means
(1) the Secretary of the Army with respect to matters concerning the Army;
(2) the Secretary of the Navy with respect to matters concerning the Navy or the Marine Corps;
(3) the Secretary of the Air Force with respect to matters concerning the Air Force; and
(4) the Secretary of Defense with respect to matters concerning the Coast Guard, or the Secretary of Homeland Security when it is not operating as a service in the Navy.
