(a) Before an application of any veteran for benefits under this chapter can be approved, such veteran shall submit proof, satisfactory to the State Department of Veterans' Affairs, of all of the following:

(1) Identification.

(2) Having been a permanent resident of the State of Alabama for at least one year immediately prior to his or her entrance into service.

(3) An honorable discharge or other proof of honorable termination of at least 24 months of service in the armed forces, or if such veteran was discharged or released by reason of service-connected disability then proof of honorable termination of less than 24 months of service is acceptable.

(b) Before the application of a wife, widow, or child of a disabled veteran or a deceased veteran or serviceman for educational benefits under this chapter is approved, proof, satisfactory to the State Department of Veterans' Affairs, must be submitted of all of the following:

(1) Establishing the identification of such wife, widow, or child as the wife, widow, or child of the veteran or serviceman, as the case may be.

(2) Of the veteran or serviceman having been a permanent resident of the State of Alabama for at least one year immediately prior, to his or her entrance into service, or if the applicant is the wife, widow, or child of a totally and permanently disabled veteran, then proof either of the veteran's having been a permanent resident of the State of Alabama for at least one year prior to his or her entrance into service or proof that the veteran has been a bona fide resident of this state for at least five years immediately prior to the filing of the application for benefits under this chapter or immediately prior to his or her death if the veteran is deceased.

(3) Of the veteran or serviceman having been a permanent resident of the State of Alabama for at least two years immediately prior to the filing of the application for benefits under this chapter or has filed an Alabama income tax return as a resident individual for the previous ten years or is a current resident and was discharged from active duty within the prior 12 months. If the veteran or serviceman is deceased, his or her dependent may still qualify if the veteran or serviceman met this residency requirement at the time of his or her death. Alabama income tax return information, including but not limited to the type of return filed, necessary to show the residency requirements under this chapter have been met is hereby exempted from the confidentiality provisions of Section 40-2A-10, and shall be provided by the Department of Revenue to the Department of Veterans Affairs upon request. Such requests and the significance of the information provided shall be requested by the Department of Veterans Affairs as necessary when other residency information is not available, and the department shall promulgate rules and procedures to effect the provisions of this section as needed.

(4) Of the wife, widow, or child being a current resident of the State of Alabama.

(5) An honorable discharge or other proof of honorable termination of service of the veteran or serviceman in the armed forces for a period of at least 90 days between the dates mentioned in this chapter, or service of less than 90 days if the veteran or serviceman was discharged or released by reason of service-connected disability.

(c) The service upon which any benefits are awarded under this chapter shall have been rendered during wartime or under extrahazardous conditions, except as provided otherwise in this section; and this condition of eligibility shall be established by the State Department of Veterans' Affairs.

(d) The service requirements provided for in subsection (c) shall not apply to any person making application for benefits under this chapter beginning with the fall term of the 2014-2015 academic year, and thereafter.

(e) Notwithstanding any other provision of this chapter to the contrary, any person denied educational benefits provided by this chapter based solely upon the service requirements provided for in subsection (c) shall be eligible to receive the benefits the person would otherwise have been entitled to had their application been approved at the time of initial application, except as provided otherwise in this subsection. Any age limitation on the benefits provided by this chapter shall be extended in like manner for any such previously denied person to ensure that the person has the opportunity to receive all benefits they would otherwise have been entitled. In order to receive any educational benefits, such previously denied person must reapply for educational benefits with the State Department of Veterans' Affairs and begin use of the educational benefits no later than the fall term of the 2015-2016 academic year. The value of tuition paid for any such previously denied person shall be limited to the in-state tuition rate of the Alabama state institution of higher learning, college, or university attended.

(f) For those first filing for benefits under this chapter on or after July 31, 2017, the educational benefit shall be for tuition reimbursement and books and fees reimbursement. The value of tuition paid per semester hour (or equivalent) shall be limited to the rate of the Department of Defense Tuition Assistance Cap. The value of the books and fees paid per semester shall be limited to $1,000 per student.