[DOCID: f:hr592.109]
From the House Reports Online via GPO Access
[wais.access.gpo.gov]
109th Congress Report
HOUSE OF REPRESENTATIVES
2d Session 109-592
======================================================================
VETERANS SMALL BUSINESS AND MEMORIAL AFFAIRS ACT OF 2006
_______
July 24, 2006.--Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
_______
Mr. Buyer, from the Committee on Veterans' Affairs, submitted the
following
R E P O R T
[To accompany H.R. 3082]
[Including cost estimate of the Congressional Budget Office]
The Committee on Veterans' Affairs, to whom was referred
the bill (H.R. 3082) to amend title 38, United States Code, to
require that 9 percent of procurement contracts entered into by
the Department of Veterans Affairs be awarded to small business
concerns owned by veterans, and for other purposes, having
considered the same, report favorably thereon with amendments
and recommend that the bill as amended do pass.
The amendments are as follows:
Strike all after the enacting clause and insert the
following:
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Veterans Small
Business and Memorial Affairs Act of 2006''.
(b) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title; table of contents.
TITLE I--SMALL BUSINESS
Sec. 101. Department of Veterans Affairs goals for participation by
small businesses owned and controlled by veterans in procurement
contracts.
Sec. 102. Department of Veterans Affairs contracting priority for
veteran-owned small businesses.
Sec. 103. Effective date.
TITLE II--MEMORIAL AFFAIRS
Sec. 201. Eligibility of Indian tribal organizations for grants for the
establishment of veterans cemeteries on trust lands.
Sec. 202. Repeal of expiration and expanded application of Department
of Veterans Affairs benefit for Government markers or headstones for
marked graves of veterans buried in private cemeteries.
Sec. 203. Provision of Government memorial headstones or markers and
memorial inscriptions for deceased dependent children of veterans whose
remains are unavailable for burial.
TITLE III--VETERANS' EMPLOYMENT AND TRAINING
Sec. 301. Professional qualifications for disabled veterans' outreach
program specialists and local veterans' employment representatives.
Sec. 302. Rules for part-time employment for disabled veterans'
outreach program specialists and local veterans' employment
representatives.
Sec. 303. State licensing and certification programs for veterans.
Sec. 304. Training of new disabled veterans' outreach program
specialists and local veterans' employment representatives by NVTI
required.
Sec. 305. Matters for inclusion in annual report on VETS program.
Sec. 306. Demonstration project on contracting for placement of certain
disabled veterans.
Sec. 307. Performance incentive awards for employment service offices.
Sec. 308. Department of Labor implementation of priority of service for
veterans requirement.
Sec. 309. Demonstration project on credentialing and licensure of
veterans.
TITLE IV--EDUCATION
Sec. 401. Exception for institutions offering Government-sponsored
nonaccredited courses to requirement of refunding unused tuition.
Sec. 402. Extension of work-study allowance.
Sec. 403. Report on improvement in administration of educational
assistance benefits.
Sec. 404. Restoration of lost entitlement for individuals who had to
discontinue a course of education because of being ordered to full-time
National Guard duty.
Sec. 405. Technical amendments.
TITLE I--SMALL BUSINESS
SEC. 101. DEPARTMENT OF VETERANS AFFAIRS GOALS FOR PARTICIPATION BY
SMALL BUSINESSES OWNED AND CONTROLLED BY VETERANS
IN PROCUREMENT CONTRACTS.
(a) In General.--Subchapter II of chapter 81 of title 38, United
States Code, is amended by adding at the end the following new section:
``Sec. 8127. Small business concerns owned and controlled by veterans;
Department contracting goals and preferences
``(a) Contracting Goals.--(1) In order to increase contracting
opportunities for small business concerns owned and controlled by
veterans and small business concerns owned and controlled by veterans
with service-connected disabilities, the Secretary shall--
``(A) establish a goal for each fiscal year for participation
in Department contracts (including subcontracts) by small
business concerns owned and controlled by veterans who are not
veterans with service-connected disabilities in accordance with
paragraph (2); and
``(B) establish a goal for each fiscal year for participation
in Department contracts (including subcontracts) by small
business concerns owned and controlled by veterans with
service-connected disabilities in accordance with paragraph
(3).
``(2) The goal for a fiscal year for participation under paragraph
(1)(A) shall be determined by the Secretary.
``(3) The goal for a fiscal year for participation under paragraph
(1)(B) shall be not less than the Government-wide goal for that fiscal
year for participation by small business concerns owned and controlled
by veterans with service-connected disabilities under section 15(g)(1)
of the Small Business Act (15 U.S.C. 644(g)(1)).
``(4) The annual performance review of the senior official of each
Administration of the Department and each Assistant Secretary of the
Department with procurement authority shall include an assessment of
whether or not that official or Assistant Secretary met the contracting
goals established pursuant to this subsection during the year for which
the performance review is conducted with respect to contracts awarded
during that year for which that official or Assistant Secretary had
responsibility. If the official or Assistant Secretary is found not to
have met such contracting goals, the official or Assistant Secretary
shall not receive an award known as a performance award or an award
known as a presidential rank award for that year.
``(5) In the case of a subcontract of a Department contract that is
counted for purposes of meeting a goal established pursuant to this
section, the Secretary shall conduct a review of the contract and
subcontract to verify that the subcontract was actually awarded to a
business concern that may be counted for purposes of meeting that goal.
``(6) The Secretary shall maintain a list based on the reviews
conducted under paragraph (5) that contains the name of the contractor
associated with each contract reviewed under that paragraph and whether
each subcontract awarded by the contractor that is counted for purposes
of meeting a goal established pursuant to this section was actually
awarded to and performed by a business concern that may be counted for
purposes of meeting that goal. The Secretary shall make such list
publicly available.
``(b) Use of Noncompetitive Procedures for Certain Small Contracts.--
For purposes of meeting the goals under subsection (a), and in
accordance with this section, in entering into a contract with a small
business concern owned and controlled by veterans for an amount less
than the simplified acquisition threshold (as defined in section 4 of
the Office of Federal Procurement Policy Act (41 U.S.C. 403)), a
contracting officer of the Department may use procedures other than
competitive procedures.
``(c) Sole Source Contracts for Contracts Above Simplified
Acquisition Threshold.--For purposes of meeting the goals under
subsection (a), and in accordance with this section, a contracting
officer of the Department may award a contract to a small business
concern owned and controlled by veterans using procedures other than
competitive procedures if--
``(1) such concern is determined to be a responsible source
with respect to performance of such contract opportunity;
``(2) the anticipated award price of the contract (including
options) will exceed the simplified acquisition threshold (as
defined in section 4 of the Office of Federal Procurement
Policy Act (41 U.S.C. 403)) but will not exceed $5,000,000; and
``(3) in the estimation of the contracting officer, the
contract award can be made at a fair and reasonable price that
offers best value to the United States.
``(d) Use of Restricted Competition.--Except as provided in
subsections (b) and (c), for purposes of meeting the goals under
subsection (a), and in accordance with this section, a contracting
officer of the Department shall award contracts on the basis of
competition restricted to small business concerns owned and controlled
by veterans if the contracting officer has a reasonable expectation
that two or more small business concerns owned and controlled by
veterans will submit offers and that the award can be made at a fair
and reasonable price that offers best value to the United States.
``(e) Eligibility of Small Business Concerns.--A small business
concern may be awarded a contract under this section only if the small
business concern and the veteran owner of the small business concern
are listed in the database of veteran-owned businesses maintained by
the Secretary under subsection (f).
``(f) Database of Veteran-Owned Businesses.--(1) Subject to
paragraphs (2) through (6), the Secretary shall maintain a database of
small business concerns owned and controlled by veterans and the
veteran owners of such business concerns.
``(2) To be eligible for inclusion in the database, such a veteran
shall submit to the Secretary such information as the Secretary may
require with respect to the small business concern or the veteran.
``(3) Information maintained in the database shall be submitted on a
voluntary basis by such veterans.
``(4) In maintaining the database, the Secretary shall carry out at
least the following two verification functions:
``(A) Verification that each small business concern listed in
the database is owned and controlled by veterans.
``(B) In the case of a veteran who indicates a service-
connected disability, verification of the service-disabled
status of such veteran.
``(5) The Secretary shall make the database available to all Federal
departments and agencies and notify each such department and agency of
the availability of the database.
``(6) If the Secretary determines that the public dissemination of
certain types of information maintained in the database is
inappropriate, the Secretary shall take such steps as are necessary to
maintain such types of information in a secure and confidential manner.
``(g) Enforcement Penalties for Misrepresentation.--Any small
business concern that is determined by the Secretary to have
misrepresented the status of that concern as a small business concern
owned and controlled by veterans or as a small business concern owned
and controlled by service-disabled veterans for purposes of this
subsection shall be debarred from contracting with the Department for a
period of five years.
``(h) Treatment of Businesses After Death of Veteran-Owner.--(1) If
the death of a veteran causes a small business concern to be less than
51 percent owned by one or more veterans, the surviving spouse of such
veteran who acquires ownership rights in such small business concern
shall, for the period described in paragraph (2), be treated as if the
surviving spouse were that veteran for the purpose of maintaining the
status of the small business concern as a small business concern owned
and controlled by veterans.
``(2) The period referred to in paragraph (1) is the period beginning
on the date on which the veteran dies and ending on the earliest of the
following dates:
``(A) The date on which the surviving spouse remarries.
``(B) The date on which the surviving spouse relinquishes an
ownership interest in the small business concern.
``(C) The date that is ten years after the date of the
veteran's death.
``(3) The death of a veteran-owner of a small business concern or a
surviving spouse of such a veteran-owner who acquires ownership rights
in such concern shall not be cause for termination of a contract
awarded under this section that is in effect at the time of death of
such owner or surviving spouse.
``(i) Change in Ownership or Control.--(1) Except as provided in
subsection (h), if a small business concern that is awarded a contract
under this section undergoes a change in management or control during
the period for which the contract is in effect such that it is no
longer a small business concern owned and controlled by veterans, the
Secretary shall end the contract on the date on which the performance
of the term of the contract is complete.
``(2) Such a contract that contains an option or options to extend
the contract may be extended for a total of not more than 1 year
pursuant to any such option.
``(j) Priority for Contracting Preferences.--Preferences for awarding
contracts to small business concerns shall be applied in the following
order of priority:
``(1) Contracts awarded pursuant to subsection (b), (c), or
(d) to small business concerns owned and controlled by veterans
with service-connected disabilities.
``(2) Contracts awarded pursuant to subsection (b), (c), or
(d) to small business concerns owned and controlled by veterans
that are not covered by subparagraph (A).
``(3) Contracts awarded pursuant to--
``(A) section 8(a) of the Small Business Act (15
U.S.C. 637(a)); or
``(B) section 31 of such Act (15 U.S.C. 657a).
``(4) Contracts awarded pursuant to any other small business
contracting preference.
``(k) Quarterly Reports.--Not later than 60 days after the last day
of a fiscal quarter, the Secretary shall submit to Congress a report on
small business contracting during that fiscal quarter, which shall
include the following:
``(1) The percentage of the total amount of all contracts
awarded by the Department during that fiscal quarter that were
awarded to small business concerns owned and controlled by
veterans.
``(2) The percentage of the total amount of all such
contracts awarded to small business concerns owned and
controlled by veterans with service-connected disabilities.
``(3) The percentage of the total amount of all contracts
awarded by each Administration of the Department during that
fiscal quarter that were awarded to small business concerns
owned and controlled by veterans.
``(4) The percentage of the total amount of all contracts
awarded by each such Administration during that fiscal quarter
that were awarded to small business concerns owned and
controlled by veterans.
``(l) Definitions.--In this section:
``(1) The term `small business concern' has the meaning given
that term under section 3 of the Small Business Act (15 U.S.C.
632).
``(2) The term `small business concern owned and controlled
by veterans' means a small business concern--
``(A)(i) not less than 51 percent of which is owned
by one or more veterans or, in the case of a publicly
owned business, not less than 51 percent of the stock
of which is owned by one or more veterans; and
``(ii) the management and daily business operations
of which are controlled by one or more veterans; or
``(B) not less than 51 percent of which is owned by
one or more veterans with service-connected
disabilities that are permanent and total who are
unable to manage the daily business operations of such
concern or, in the case of a publicly owned business,
not less than 51 percent of the stock of which is owned
by one or more such veterans.''.
(b) Transition Rule.--A small business concern that is listed in any
small business database maintained by the Secretary of Veterans Affairs
on the date of the enactment of this Act shall be presumed to be
eligible for inclusion in the database under subsection (f) of section
8127 of title 38, United States Code, as added by subsection (a),
during the period beginning on the date of the enactment of this Act
and ending one year after the date of the enactment of this Act. Such a
small business concern may be removed from the database during that
period if it is found not to be a small business concern owned and
controlled by veterans (as defined in subsection (l) of such section).
(c) Comptroller General Report and Study.--(1) During the first three
fiscal years for which this section is in effect, the Comptroller
General shall conduct a study on the efforts made by the Secretary of
Veterans Affairs to meet the contracting goals established pursuant to
section 8127 of title 38, United States Code, as added by subsection
(a).
(2) On January 31 of each year during which the Comptroller General
conducts the study under paragraph (1), the Comptroller General shall
submit to Congress an interim report on such study, placing special
emphasis on any structural or organizational issues within the
Department of Veterans Affairs that might act as an impediment to
reaching such contracting goals.
(3) Not later than 90 days after the end of the three-year period
during which the Comptroller General conducts the study under paragraph
(1), the Comptroller General shall submit to Congress a report on the
findings of such study.
(d) Clerical Amendment.--The table of sections at the beginning of
such chapter is amended by inserting after the item relating to section
8126 the following new item:
``8127. Small business concerns owned and controlled by veterans;
Department contracting goals and preferences.''.
SEC. 102. DEPARTMENT OF VETERANS AFFAIRS CONTRACTING PRIORITY FOR
VETERAN-OWNED SMALL BUSINESSES.
(a) Priority for Veteran-Owned Small Businesses.--Subchapter II of
chapter 81 of title 38, United States Code, as amended by section
101(a), is further amended by adding at the end the following new
section:
``Sec. 8128. Contracting priority for small business concerns owned and
controlled by veterans
``(a) In General.--In procuring goods and services pursuant to a
contracting preference under this title or any other provision of law,
the Secretary shall give priority to a small business concern owned and
controlled by veterans, if such business concern also meets the
requirements of that contracting preference.
``(b) Definition.--The term `small business concern owned and
controlled by veterans' means a small business concern that is on the
list maintained by the Secretary under section 8127(f) of this
title.''.
(b) Clerical Amendment.--The table of sections at the beginning of
such chapter, as amended by section 101, is further amended by
inserting after the item relating to section 8127 the following new
item:
``8128. Contracting priority for small business concerns owned and
controlled by veterans.''.
SEC. 103. EFFECTIVE DATE.
This title and the amendments made by this title shall take effect on
the date that is 180 days after the date of the enactment of this Act.
TITLE II--MEMORIAL AFFAIRS
SEC. 201. ELIGIBILITY OF INDIAN TRIBAL ORGANIZATIONS FOR GRANTS FOR THE
ESTABLISHMENT OF VETERANS CEMETERIES ON TRUST
LANDS.
Section 2408 of title 38, United States Code, is amended by adding at
the end the following new subsection:
``(f)(1) The Secretary may make grants under this subsection to any
tribal organization to assist the tribal organization in establishing,
expanding, or improving veterans' cemeteries on trust land owned by, or
held in trust for, the tribal organization.
``(2) Grants under this subsection shall be made in the same manner,
and under the same conditions, as grants to States are made under the
preceding provisions of this section.
``(3) In this subsection:
``(A) The term `tribal organization' has the meaning given
that term in section 3765(4) of this title.
``(B) The term `trust land' has the meaning given that term
in section 3765(1) of this title.''.
SEC. 202. REPEAL OF EXPIRATION AND EXPANDED APPLICATION OF DEPARTMENT
OF VETERANS AFFAIRS BENEFIT FOR GOVERNMENT MARKERS
OR HEADSTONES FOR MARKED GRAVES OF VETERANS BURIED
IN PRIVATE CEMETERIES.
(a) Repeal of Expiration of Government Marker Benefit and Obsolete
Provision.--Section 2306(d) of title 38, United States Code, is amended
by striking paragraphs (3) and (4).
(b) Application of Government Marker Benefit to Veterans Dying on or
After November 1, 1990.--Subsection (d) of section 502 of the Veterans
Education and Benefits Expansion Act of 2001 (Public Law 107-103; 38
U.S.C. 2306 note) is amended by striking ``September 11, 2001'' and
inserting ``November 1, 1990''.
(c) Provision of Government Headstones.--
(1) Provision of headstones.--Subsection (d) of section 2306
of title 38, United States Code, is amended--
(A) in paragraph (1)--
(i) in the first sentence, by inserting
``headstone or'' after ``Government''; and
(ii) in the second sentence, by inserting
``headstone or'' before ``marker'' each place
it appears; and
(B) in paragraph (2), by inserting ``headstone or''
before ``marker''.
(2) Conforming amendment.--Subsection (g)(3) of such section
is amended by inserting ``headstone or'' before ``marker''.
(d) Placement of Government Headstones or Markers.--Subsection (d)(1)
of such section, as amended by subsection (c), is further amended by
adding at the end the following new sentence: ``If placing the
Government headstone or marker on the grave for which it is requested
is impossible or impracticable, a headstone or marker may be furnished
if the individual making the request for the headstone or marker
certifies to the Secretary that the headstone or marker will be placed
within the grounds of the cemetery in which the grave for which the
headstone or marker is requested and as close as possible or
practicable to that grave.''.
(e) Delivery of Government Headstones or Markers.--Subsection (d)(2)
of such section, as amended by subsection (c), is further amended by
inserting before the period at the end the following: ``or to a
receiving agent of that cemetery''.
(f) Selection of Government Headstones and Markers.--Subsection (d)
of such section, as amended by subsections (a), (c), (d), and (e), is
further amended by adding at the end the following new paragraph (3):
``(3) The headstone or marker furnished under this subsection shall
be the headstone or marker selected by the individual making the
request for the headstone or marker from among all the headstones and
markers made available by the Government and certified as acceptable
for placement.''.
(g) Retroactive Effective Date.--The amendments made by this section
shall apply as if enacted in section 502 of the Veterans Education and
Benefits Expansion Act of 2001 (Public Law 107-103; 38 U.S.C. 2306
note).
SEC. 203. PROVISION OF GOVERNMENT MEMORIAL HEADSTONES OR MARKERS AND
MEMORIAL INSCRIPTIONS FOR DECEASED DEPENDENT
CHILDREN OF VETERANS WHOSE REMAINS ARE UNAVAILABLE
FOR BURIAL.
(a) Provision of Memorial Headstones or Markers.--Subsection (b) of
section 2306 of title 38, United States Code, is amended--
(1) by adding at the end of paragraph (2) the following new
subparagraph:
``(C) An eligible dependent child of a veteran.''; and
(2) by adding at the end of paragraph (4) the following new
subparagraph:
``(C) For purposes of this section, the term `eligible
dependent child' means a child--
``(i) who is under 21 years of age, or under 23 years
of age if pursuing a course of instruction at an
approved educational institution; or
``(ii) who is unmarried and became permanently
physically or mentally disabled and incapable of self-
support before reaching 21 years of age, or before
reaching 23 years of age if pursuing a course of
instruction at an approved educational institution.''.
(b) Addition of Memorial Inscription to Headstone or Marker of
Veteran.--Subsection (f) of such section is amended by inserting ``or
eligible dependent child'' after ``surviving spouse'' both places it
appears.
(c) Effective Date.--The amendments made by subsections (a) and (b)
shall apply with respect to individuals dying after the date of the
enactment of this Act.
TITLE III--VETERANS' EMPLOYMENT AND TRAINING
SEC. 301. PROFESSIONAL QUALIFICATIONS FOR DISABLED VETERANS' OUTREACH
PROGRAM SPECIALISTS AND LOCAL VETERANS' EMPLOYMENT
REPRESENTATIVES.
(a) Establishment of Guidelines by Secretary.--Section 4107 of title
38, United States Code, is amended by adding at the end the following
new subsection:
``(d) The Secretary shall maintain guidelines for use by States in
establishing the professional qualifications required under subclause
(IV) of section 4102A(c)(2)(A)(i) of this title for determining the
eligibility for employment, and eligibility for the continued
employment, of State employees who are designated as disabled veterans'
outreach program specialists and local veterans' employment
representatives under this chapter.''.
(b) Submission of Annual Professional Qualifications as a Condition
of State Receipt of Funds Under VETS Program.--Clause (i) of section
4102A(c)(2)(A) of such title is amended--
(1) in subclause (II), by striking ``and'' at the end;
(2) in subclause (III), by striking the period at the end and
inserting a semicolon; and
(3) by adding at the end the following new subclauses:
``(IV) the professional qualifications used by the
State for determining the eligibility for employment,
and eligibility for continued employment, of State
employees who are designated as disabled veterans'
outreach program specialists and local veterans'
employment representatives under this chapter; and
``(V) the training required or provided by the State
for State employees who are designated as disabled
veterans' outreach program specialists and local
veterans' employment representatives under this
chapter.''.
(c) Deadline for Establishment of Qualifications.--The Secretary of
Labor shall establish the guidelines for professional qualifications
required by sections 4107(d) of title 38, United States Code, as added
by subsection (a), not later than the date that is 180 days after the
date of the enactment of this Act.
(d) Technical Amendments.--
(1) Amendments.--Section 4102A of such title, as amended by
subsection (b), is further amended--
(A) in subsection (c)--
(i) by striking clause (ii) of paragraph
(2)(B) and redesignating clause (iii) as clause
(ii); and
(ii) in paragraph (6)--
(I) by inserting ``(29 U.S.C. 2801 et
seq.)'' after ``the Workforce
Investment Act of 1998''; and
(II) by inserting ``(29 U.S.C. 49 et
seq.)'' after ``the Wagner-Peyser
Act''; and
(B) in subsection (f)--
(i) in paragraph (1), by striking ``establish
and''; and
(ii) by striking the heading and inserting
the following: ``Performance Standards and
Outcomes Measures.--''.
(2) Effective date.--The amendment made by clause (i) of
paragraph (1)(A) shall take effect on October 1, 2006.
SEC. 302. RULES FOR PART-TIME EMPLOYMENT FOR DISABLED VETERANS'
OUTREACH PROGRAM SPECIALISTS AND LOCAL VETERANS'
EMPLOYMENT REPRESENTATIVES.
(a) Disabled Veterans' Outreach Program Specialists.--Section 4103A
of title 38, United States Code, is amended by adding at the end the
following new subsection:
``(c) Part-Time Employees.--A part-time disabled veterans' outreach
program specialist shall perform the functions of a disabled veterans'
outreach program specialist under this section on a half-time basis.''.
(b) Local Veterans' Employment Representatives.--Section 4104 of such
title is amended by adding at the end the following new subsection:
``(e) Part-Time Employees.--A part-time local veterans' employment
representative shall perform the functions of a local veterans'
employment representative under this section on a half-time basis.''.
(c) Effective Date.--Sections 4103A(c) and 4104(e) of title 38,
United States Code, as added by subsections (a) and (b), shall apply
with respect to pay periods beginning after the date that is 180 days
after the date of the enactment of this Act.
SEC. 303. STATE LICENSING AND CERTIFICATION PROGRAMS FOR VETERANS.
(a) Requirement as a Condition of VETS Funding.--Section 4102A(c) of
title 38, United States Code, as amended by section 301, is further
amended by adding at the end the following new paragraph:
``(8) As a condition of a grant or contract under which funds are
made available to a State in order to carry out section 4103A or 4104
of this title, the Secretary shall require the State to provide a
licensing and certification program under which a veteran may receive
credit toward a license or certification based on training or
experience the veteran acquired while serving in the Armed Forces.''.
(b) Effective Date.--Section 4102A(c)(8) of title 38, United States
Code, as added by subsection (a), shall apply to a grant or contract
under which funds are made available to a State in order to carry out
section 4103A or 4104 of such title beginning with the second program
year beginning after the date of the enactment of this Act.
SEC. 304. TRAINING OF NEW DISABLED VETERANS' OUTREACH PROGRAM
SPECIALISTS AND LOCAL VETERANS' EMPLOYMENT
REPRESENTATIVES BY NVTI REQUIRED.
(a) Training Required.--Section 4102A(c) of title 38, United States
Code, is further amended by adding after paragraph (8), as added by
section 303, the following new paragraph:
``(9)(A) As a condition of a grant or contract under which funds are
made available to a State in order to carry out section 4103A or 4104
of this title, the Secretary shall require the State to require each
employee hired by the State who is designated as disabled veterans'
outreach program specialist or a local veterans' employment
representative under this chapter to satisfactorily complete training
provided by the National Veterans' Employment and Training Services
Institute during the three-year period that begins on the date on which
the employee is so designated.
``(B) For any employee described in subparagraph (A) who does not
complete such training during such period, the Secretary may reduce by
an appropriate amount the amount made available to the State employing
that employee.''.
(b) Submission of Employee Training Information Required.--Section
4102A(c)(2)(A) of such title is amended--
(1) by redesignating clause (iii) as clause (iv); and
(2) by inserting after clause (ii) the following new clause
(iii):
``(iii) For each employee of the State who is designated as
disabled veterans' outreach program specialist or a local
veterans' employment representative under this chapter--
``(I) the date on which the employee is so
designated; and
``(II) whether the employee has satisfactorily
completed training provided by the National Veterans'
Employment and Training Services Institute.''.
(c) Applicability.--
(1) Applicability to new employees.--Paragraph (9) of section
4102A(c) of such title, as added by subsection (a), and clause
(iii) of section 4102A(c)(2)(A) of such title, as added by
subsection (b), shall apply with respect to a State employee
designated as a disabled veterans' outreach program specialist
or a local veterans' employment representative under chapter 41
of such title who is so designated after the date of the
enactment of this Act.
(2) Applicability to certain employees hired before date of
enactment.--The Secretary of Labor shall apply such paragraph
to a State employee designated as a disabled veterans' outreach
program specialist or a local veterans' employment
representative under chapter 41 of such title who was so
designated during the five-year period before the date of the
enactment of this Act by substituting ``during the period
beginning on the date on which the employee is so designated
and ending on the date that is five years after the date of the
enactment of the Veterans Small Business and Memorial Affairs
Act of 2006'' for ``during the three-year period that begins on
the date on which the employee is so designated''.
SEC. 305. MATTERS FOR INCLUSION IN ANNUAL REPORT ON VETS PROGRAM.
Section 4107(c) of title 38, United States Code, is amended--
(1) by redesignating paragraphs (3) through (6) as paragraphs
(10) through (13), respectively; and
(2) by inserting after paragraph (2) the following new
paragraphs:
``(3) the number of veterans, disabled veterans, and special
disabled veterans who requested training from the public
employment service system;
``(4) the total number of eligible veterans participating in
each program for the provision of employment and training
services designed to meet the needs of eligible veterans and
eligible persons and the number of such veterans as a
percentage of the total number of participants in each such
program;
``(5) for each State, the percentage of persons seeking
employment in the State who are veterans;
``(6) for each State, the number of veterans referred to a
small business development center in that State and the number
of veterans referred to the National Veterans Business
Development Corporation established under section 33 of the
Small Business Act (15 U.S.C. 657c);
``(7) the total number of such veterans and disabled veterans
who remain employed for at least 90 days in such jobs;
``(8) the number of such veterans and disabled veterans who
remain employed for at least 180 days in such jobs;
``(9) the average starting wage or salary paid to such
veterans and disabled veterans and, if applicable, the average
wage or salary paid to such veterans and disabled veterans as
of the 180th day of employment;''.
SEC. 306. DEMONSTRATION PROJECT ON CONTRACTING FOR PLACEMENT OF CERTAIN
DISABLED VETERANS.
(a) Demonstration Project.--Section 4102A of title 38, United States
Code, as amended by sections 301, 303, and 304, is further amended by
adding at the end the following new subsection:
``(h) Demonstration Project on Contracting for Placement of Veterans
in High-Unemployment Areas.--(1) From unobligated funds made available
for a fiscal year to carry out sections 4103A and 4104 of this title,
the Secretary of Labor, acting through the Assistant Secretary of Labor
for Veterans' Employment and Training, may enter into a contract with a
nongovernmental entity to carry out job placement services for veterans
during that fiscal year in a locality where the unemployment rate for
veterans exceeds the national average unemployment rate.
``(2) In entering into a contract under paragraph (1), the Secretary
of Labor may use procedures other than competitive procedures.
``(3) In entering into a contract under paragraph (1), the Secretary
of Labor shall give priority to a small business concern owned and
controlled by veterans that is listed in any small business database
maintained by the Secretary of Veterans Affairs.
``(4) The total amount obligated under contracts entered into under
paragraph (1) for any fiscal year may not exceed $3,000,000.
``(5) The authority to enter into a contract under this subsection
shall terminate on the date that is five years after the date of the
enactment of the Veterans Small Business and Memorial Affairs Act of
2006.''.
(b) GAO Report.--Not later than four years after the date of the
enactment of this Act, the Comptroller General shall submit to the
Committees on Veterans' Affairs of the Senate and House of
Representatives a report on the demonstration project under subsection
(h) of section 4102A of title 38, United States Code, as added by
subsection (a).
SEC. 307. PERFORMANCE INCENTIVE AWARDS FOR EMPLOYMENT SERVICE OFFICES.
(a) Provision of Incentives to Employment Service Offices.--Section
4112 of title 38, United States Code, is amended--
(1) in subsection (a)(1)(B), by inserting ``and employment
service offices'' after ``recognize eligible employees'';
(2) in subsection (c)--
(A) in paragraph (1), by striking ``and'' at the end;
(B) in paragraph (2)--
(i) by striking ``is'' and inserting ``in the
case of such an award made to an eligible
employee, shall be''; and
(ii) by striking the period at the end and
inserting the following: ``; and''; and
(C) by adding at the end the following new paragraph:
``(3) in the case of such an award made to an employment
service office, may be used by that employment service office
for any purpose.''.
(b) Conforming Amendment.--The heading for subsection (c) of such
section is amended to read as follows: ``Administration and Use of
Awards.--''.
SEC. 308. DEPARTMENT OF LABOR IMPLEMENTATION OF PRIORITY OF SERVICE FOR
VETERANS REQUIREMENT.
Not later than one year after the date of the enactment of this Act,
the Secretary of Labor shall prescribe regulations to implement section
4215 of title 38, United States Code.
SEC. 309. DEMONSTRATION PROJECT ON CREDENTIALING AND LICENSURE OF
VETERANS.
(a) Establishment of Demonstration Project.--Chapter 41 of title 38,
United States Code, is amended by adding at the end the following new
section:
``Sec. 4114. Demonstration project on credentialing and licensure of
veterans
``(a) Establishment and Purpose of Demonstration Project.--The
Assistant Secretary for Veterans' Employment and Training shall carry
out a demonstration project on credentialing in accordance with this
section for the purpose of facilitating the seamless transition of
members of the Armed Forces from service on active duty to civilian
employment.
``(b) Credentialing and Licensure of Veterans.--(1) The Assistant
Secretary shall select not less than ten military occupational
specialties for purposes of the demonstration project. Each such
speciality selected by the Assistant Secretary shall require a skill or
set of skills that is required for civilian employment in an industry
with high growth or high worker demand.
``(2) The Assistant Secretary shall consult with appropriate Federal,
State, and industry officials to identify requirements for credentials,
certifications, and licenses that require a skill or set of skills
required by a military occupational specialty identified under
paragraph (1).
``(3) The Assistant Secretary shall analyze the requirements
identified under paragraph (2) to determine which requirements may be
satisfied by the skills, training, or experience acquired by members of
the Armed Forces with the military occupational specialties selected
under paragraph (1).
``(c) Elimination of Barriers to Credentialing and Licensure.--The
Assistant Secretary shall cooperate with appropriate Federal, State,
and industry officials to reduce or eliminate any barriers to providing
a credential, certification, or license to a veteran who acquired any
skill, training, or experience while serving as a member of the Armed
Forces with a military occupational specialty selected under subsection
(b)(1) that satisfies the Federal and State requirements for the
credential, certification, or license.
``(d) Task Force.--The Assistant Secretary may establish a task force
of individuals with appropriate expertise to provide assistance to the
Assistant Secretary in carrying out this section.
``(e) Consultation.--In carrying out this section, the Assistant
Secretary shall consult with the Secretary of Defense, the Secretary of
Veterans Affairs, appropriate Federal and State officials, private-
sector employers, labor organizations, and industry trade associations.
``(f) Contract Authority.--For purposes of carrying out any part of
the demonstration project under this section, the Assistant Secretary
may enter into a contract with a public or private entity with
appropriate expertise.
``(g) Period of Project.--The Assistant Secretary shall carry out the
demonstration project under this section during the period beginning on
the date that is 60 days after the date of the enactment of this
section and ending on September 30, 2009.
``(h) Authorization of Appropriations.--There are authorized to be
appropriated to the Assistant Secretary to carry out this section
$1,000,000 for each of fiscal years 2007 through 2009.''.
(b) Membership of Advisory Committee on Veterans Employment,
Training, and Employer Outreach.--Section 4110(c)(1)(A) of such title
is amended----
(1) by striking ``Six'' and inserting ``Seven''; and
(2) by adding at the end the following new clause:
``(vii) The National Governors Association.''.
(c) Clerical Amendment.--The table of sections at the beginning of
chapter 41 of such title is amended by adding at the end the following
new item:
``4114. Demonstration project on credentialing and licensure of
veterans.''.
TITLE IV--EDUCATION
SEC. 401. EXCEPTION FOR INSTITUTIONS OFFERING GOVERNMENT-SPONSORED
NONACCREDITED COURSES TO REQUIREMENT OF REFUNDING
UNUSED TUITION.
Section 3676(c)(13) of title 38, United States Code, is amended by
striking ``prior to completion'' and all that follows and inserting the
following: ``before completion and----
``(A) in the case of an institution other than (i) a
Federal, State, or local Government institution or (ii)
an institution described in subparagraph (B), such
policy provides that the amount charged to the eligible
person for tuition, fees, and other charges for a
portion of the course shall not exceed the approximate
pro rata portion of the total charges for tuition,
fees, and other charges that the length of the
completed portion of the course bears to its total
length; and
``(B) in the case of an institution that is a
nonaccredited public educational institution, the
institution has and maintains a refund policy regarding
the unused portion of tuition, fees, and other charges
that is substantially the same as the refund policy
followed by accredited public educational institutions
located within the same State as such institution.''.
SEC. 402. EXTENSION OF WORK-STUDY ALLOWANCE.
Section 3485(a)(4) of title 38, United States Code, is amended by
striking ``December 27, 2006'' each place it appears and inserting
``June 30, 2007''.
SEC. 403. REPORT ON IMPROVEMENT IN ADMINISTRATION OF EDUCATIONAL
ASSISTANCE BENEFITS.
Not later than 180 days after the date of the enactment of this Act,
the Secretary of Veterans Affairs shall submit to Congress a report on
the administration of education benefits under chapters 30, 31, 32, 34,
35, and 36 of title 38, United States Code, and chapters 1606 and 1607
of title 10, United States Code, that proposes methods to streamline
the processes and procedures of administering such benefits.
SEC. 404. RESTORATION OF LOST ENTITLEMENT FOR INDIVIDUALS WHO HAD TO
DISCONTINUE A COURSE OF EDUCATION BECAUSE OF BEING
ORDERED TO FULL-TIME NATIONAL GUARD DUTY.
(a) Restoration of Entitlement.--Section 3511(a)(2)(B)(i) of title
38, United States Code, is amended by inserting after ``title 10'' the
following: ``or of being involuntarily ordered to full-time National
Guard duty under section 502(f) of title 32''.
(b) Effective Date.--The amendment made by subsection (a) shall apply
with respect to a payment of educational assistance allowance made
after September 11, 2001.
SEC. 405. TECHNICAL AMENDMENTS.
Section 3485 of title 38, United States Code, is amended----
(1) in subsection (a)(4)(E), by inserting ``or 1607'' after
``chapter 1606'';
(2) in subsection (b), by striking ``chapter 106'' and
inserting ``chapter 1606 or 1607''; and
(3) in subsection (e)(1)----
(A) by striking ``services of the kind described in
clauses (A) through (E) of subsection (a)(1) of this
section'' and inserting ``a qualifying work-study
activity described in subsection (a)(4)''; and
(B) by striking ``chapter 106'' and inserting
``chapter 1606 or 1607''.
Amend the title so as to read:
A bill to amend title 38, United States Code, to make
improvements to small business, memorial affairs, education,
and employment programs for veterans, and for other purposes.
Introduction
The reported bill reflects the Committee's consideration of
H.R. 601; H.R. 3082, as amended; H.R. 5038, as amended; and
H.R. 5220, as amended.
On February 2, 2005, Honorable Tom Udall introduced H.R.
601, the Native American Veterans Cemetery Act of 2005, which
would authorize the Secretary of Veterans Affairs to make
grants to tribal organizations to assist them in establishing,
expanding, or improving veterans' cemeteries on trust lands.
On June 28, 2005, the Chairman and Ranking Member of the
Subcommittee on Economic Opportunity, Honorable John Boozman
and Honorable Stephanie Herseth, respectively, Honorable
Michael Bilirakis, Honorable Terry Everett, and Honorable Dan
Burton introduced H.R. 3082, the Veteran-Owned Small Business
Promotion Act of 2005, which would improve the competitive
status of small businesses owned by veterans and service-
disabled veterans when competing for VA small business set-
aside contracts.
On March 29, 2006, the Chairman and Ranking Member of the
Subcommittee on Disability Assistance and Memorial Affairs,
Honorable Jeff Miller and Honorable Shelley Berkley,
respectively, introduced H.R. 5038, the Veterans' Memorial
Marker Act of 2006, which would extend, through December 31,
2007, the authority of the Secretary of Veterans Affairs to
provide government markers for veterans interred in a marked
grave at a private cemetery. The bill would also extend the
program to veterans interred in a private cemetery and who died
between November 1, 1990 and September 10, 2001. The bill would
also authorize the Secretary of Veterans Affairs to provide a
memorial marker in a national cemetery for dependent children
who would be eligible for burial but whose remains are
unavailable.
On April 6, 2006, the Subcommittee on Disability Assistance
and Memorial Affairs held a hearing on seven bills, including
H.R. 601 and H.R. 5038.
On April 27, 2006, the Subcommittee on Economic Opportunity
held a hearing on five bills, including H.R. 3082, and draft
legislation that would improve the competitive status of small
businesses owned by veterans and service-disabled veterans when
competing for VA contracts. The draft bill included provisions
which would set procurement goals, establish incentive
provisions, and continue veteran or service-disabled veteran
status in cases where the veteran or service-disabled veteran-
owner dies.
On April 27, 2006, Honorable Ginny Brown-Waite introduced
H.R. 5220, the Veterans Licensing and Credentialing Act of
2006. H.R. 5220 would establish a program to promote licensing
and certification of veterans pursuing occupations related to
their military training and experience.
On May 10, 2006, the Subcommittee on Economic Opportunity
met and ordered H.R. 3082, as amended, and H.R. 5220, as
amended, reported favorably to the full Committee by unanimous
voice vote.
On June 8, 2006, the Subcommittee on Disability Assistance
and Memorial Affairs met and ordered H.R. 601 reported
favorably to the full Committee by unanimous voice vote.
On July 12, 2006, the Subcommittee on Disability Assistance
and Memorial Affairs met and ordered H.R. 5038, as amended,
reported favorably to the full Committee by unanimous voice
vote.
On July 13, 2006, the full Committee met and ordered H.R.
3082, as amended, reported favorably to the House by unanimous
voice vote.
Summary of the Reported Bill
H.R. 3082, as amended, would:
TITLE I--SMALL BUSINESS
1. Require the Secretary of Veterans Affairs (the
Secretary) to establish annual contracting goals for the
Department of Veterans Affairs (VA) to enter into with small
businesses owned and controlled by veterans and service-
disabled veterans. The goal for service-disabled, veteran-owned
small businesses would not be less than three percent.
2. Require VA to maintain a database of small businesses
owned by veterans and service-disabled veterans and require
listing in this database as a condition of participation in VA
procurement program.
3. Require VA to validate the veteran's disability status
and ownership interest in any business listed in the database.
4. Provide veteran and service-disabled, veteran-owned
small businesses priority in VA contracting as well as priority
among other ``set-aside'' groups eligible for preferential
treatment under the Small Business Act.
5. Clarify veteran small business competition rules for
contracts worth less than $5 million.
6. Authorize continued status as a veteran or service-
disabled veteran-owned small business by a surviving spouse for
a period of 10 years following the death of the veteran or
service-disabled veteran owner.
7. Require annual performance reviews of senior VA
procurement officials to include assessment of efforts to meet
veteran contracting goals and prohibit award of performance
bonuses to those senior officials whose organizations within VA
do not meet veteran or service-disabled veteran-owned business
contracting goals.
8. Require VA to provide quarterly reports on small
business contracting.
9. Require the Comptroller General to study, during the
first 3 fiscal years, the efforts made by the Secretary to meet
contracting goals.
TITLE II--MEMORIAL AFFAIRS
1. Authorize the Secretary to make grants to tribal
governments under the State Cemetery Grants Program to assist
them in establishing, expanding, or improving veterans'
cemeteries on trust lands.
2. Make permanent the Secretary's authority to furnish a
government headstone or marker for veterans interred in a
marked grave at a private cemetery. The current authorization
expires on December 31, 2006.
3. Expand the Secretary's authority to furnish a government
headstone or marker for veterans who died between November 1,
1990, and September 10, 2001, and who are interred in a marked
grave at a private cemetery.
4. Authorize the placement of a memorial marker in a
national cemetery for dependent children who would be eligible
for burial but whose remains are unavailable.
TITLE III--VETERANS' EMPLOYMENT AND TRAINING
1. Require the U.S. Department of Labor's Veterans'
Employment and Training Service (VETS) to establish non-
mandatory professional qualification guidelines for Disabled
Veterans Outreach Program Specialists (DVOPS) and Local
Veterans Employment Representatives (LVERs).
2. Require states to describe the qualifications and
training for DVOPS and LVERs as part of the application for a
state grant.
3. Clarify that part-time employment of DVOPS and LVERs is
half-time employment.
4. Require states to develop a licensing and certification
program within 2 years after date of enactment for veterans as
a condition of receiving a grant from VETS.
5. Require that all DVOPS/LVERs hired after date of
enactment successfully complete training by the National
Veterans' Training Institute within three years of appointment.
6. Modify VETS' annual report to include additional and
more specific data concerning veterans' employment.
7. Authorize a 5-year demonstration project to allow the
Assistant Secretary of Labor for VETS to enter into contracts
with non-governmental entities to carry out placement services
in high unemployment areas using unobligated funds, and require
the Government Accountability Office to report on this
demonstration project.
8. Modify the incentive award program to recognize high-
performing employment service offices in addition to high
performing employees.
9. Require DOL to prescribe regulations with regard to
priority of service established under the Jobs for Veterans
Act, Public Law 107-288, no later than 1 year after date of
enactment.
10. Establish a demonstration project that would:
a. authorize the Secretary of Labor to identify not fewer
than 10 military occupational specialties that would lead to
civilian credentialing within an industry that has a critical
shortage of employees or that is a high-growth industry;
b. require the Secretary of Labor to work with states and
industries to identify the civilian credentialing requirements
within each state and industry to reduce the barriers for
servicemembers seeking civilian employment;
c. require an annual report to Congress describing the
efforts and results of the previous year toward credentialing
services;
d. terminate authorization of the demonstration project on
September 30, 2009; and
e. authorize appropriations of $1,000,000 for each of the
fiscal years 2007 through 2009.
11. Include a representative from the National Governors
Association on the Secretary's Advisory Committee on Veterans
Employment, Training, and Employer Outreach of the Department
of Labor.
TITLE IV--EDUCATION
1. Clarify that the pro-rata refund policy for non-
accredited educational institutions does not apply to Federal,
state or local government courses.
2. Extend authorization for work-study positions located at
VA cemeteries, state veterans homes, and State Approving
Agencies through June 30, 2007.
3. Require VA to report on methods to improve and
streamline the administrative processes and procedures of
education programs in chapters 30 through 36 of title 38,
United States Code.
4. Restore lost entitlement for certain chapter 35
education beneficiaries who are survivors and dependents of
veterans who are forced to discontinue a course of education
due to being called to full-time National Guard duty.
Background and Discussion
TITLE I--SMALL BUSINESS
Department of Veterans Affairs goals for participation by
small businesses owned and controlled by veterans in
procurement contracts.--Section 101 of the bill would improve
the competitive status of small businesses owned by veterans
and service-disabled veterans when competing for VA contracts.
The Committee believes that qualified small businesses owned
and operated by veterans and service-disabled veterans have
earned the opportunity to compete for VA contracts, including
small business set-aside contracts. Indeed, the Committee
believes that small businesses owned and controlled by veterans
and service-disabled veterans should routinely be granted the
primary opportunity to enter into VA procurement contracts, and
would encourage other federal agencies to provide such
preferences to veteran and service-disabled veteran owned small
businesses. The Committee expects that VA will implement
section 101 in an effective and expeditious manner, and
accordingly, demonstrate improvement in meeting the contracting
goals established by Public Law 106-50.
Public Law 106-50 established a federal contracting goal of
three percent for service-disabled veteran-owned small business
concerns and improved access to capital and government
procurement information for veterans and service-disabled
veterans. To date, most federal agencies, including VA, have
not met the three-percent contracting goal. While VA has
demonstrated improvement in contracting with service-disabled
veteran owned small businesses, the Committee believes the
provisions of H.R. 3082 will provide the VA with the necessary
procurement tools to meet, if not exceed, its contracting
goals. Of course, strong leadership will also be needed from
senior VA officials to effectively implement the provisions and
continue to improve on VA's contracting efforts.
During a hearing held by the Committee on Veterans' Affairs
on February 5, 2003, witnesses provided testimony concerning
the federal government's failure to meet contracting goals. The
reasons stated by the witnesses included the lack of emphasis
on the goal by federal contracting officers and top managers;
the discretionary, not mandatory, nature of the goals; the lack
of real enforcement authority on the part of the Small Business
Administration (SBA) and the lack of real contracting tools
(such as set-asides or restricted contracts) to use in meeting
the three-percent goal for service-disabled veteran-owned small
businesses.
As a result of the hearing, Congress ultimately enacted
certain provisions of H.R. 2297, the Veterans Benefits Act of
2003, which became Public Law 108-183, this enhanced the
ability of federal agencies to contract with veterans and
service-disabled veterans. Among other provisions, the law
established contract set-aside ``tools'' for use by contracting
officers to reach the three-percent goal. These tools included:
1. furnishing federal agencies discretionary authority to
create sole-source contracts for service-disabled, veteran-
owned small businesses--up to $5 million for manufacturing
contract awards and up to $3 million for non-manufacturing
contract awards; and
2. furnishing federal agencies discretionary authority to
restrict certain contracts to service-disabled, veteran-owned
small businesses if at least two such concerns are qualified to
bid on the contract.
Following the enactment of Public Law 108-183, the
Subcommittee on Economic Opportunity held several hearings,
both on its own, and jointly with the Committee on Small
Business, to review service-disabled veteran-owned small
business procurement policies within the federal government.
The Committee, while noticing improvement by certain federal
agencies, remains frustrated with respect to the efforts of the
majority of federal agencies to enter into contracts with
service-disabled veteran-owned small businesses. Moreover, the
Committee has received testimony from numerous witnesses
describing what they perceive as a culture of indifference or
ignorance by many procurement officials with respect to the
service-disabled veteran-owned small business provisions of
Public Law 108-183. For example, total federal agency
contracting with service-disabled small businesses amounted to
only 0.605 percent in 2005.
The Committee expects VA to set the example among
government agencies for procurement with veteran and service-
disabled veteran-owned small businesses. The bill would provide
new tools and procedures for VA contracting officers to enable
them to do more business with veteran and service-disabled
veteran entrepreneurs. Given this new set of acquisition tools,
there should be no reason for VA not to meet the veteran and
service-disabled veteran small business contracting goals. The
Committee also expects the Department to make a significant
effort to ensure that its contracting officers understand the
new tools and utilize these tools effectively. Should the
Department continue to fall short despite these additional
tools, the Committee will consider further steps in order to
achieve improvement in this area. The Committee believes that
credit for subcontracts awarded by prime contractors to veteran
and service-disabled veteran-owned businesses should qualify
for meeting the goals established by the Secretary. However,
contracts awarded to service-disabled veteran-owned businesses
may not be counted towards meeting the goal set by the
Secretary for non-service disabled veteran-owned businesses.
The Committee expects senior VA management to take a strong
leadership role in the implementation and administration of the
provision within H.R. 3082, as amended. The Committee believes
that failure to meet current contracting goals is a failure of
senior VA management. Therefore, this section includes
provisions prohibiting the award of bonuses to senior
Administration officials such as the several Under Secretaries
and Assistant Secretaries whose Administration or organization
fails to meet the goals established by the Secretary. The
Committee believes that there is sufficient opportunity within
all Administrations and organizations with procurement
authority to meet the goals and expects the Secretary to
aggressively monitor the Department's performance.
The Committee believes that the long-term interests of
veteran and service-disabled veteran-owned small businesses are
best served by maintaining competition whenever possible. This
section provides contracting officers with the authority to
issue sole-source contracts when appropriate under the limits
set by the legislation. While the Committee encourages VA to
use the sole-source option to the advantage of the Department,
the Committee also believes that excessive use of sole-source
contracts as a convenience to the contracting officer is not
conducive to expanding the number of veteran-owned small
businesses receiving contracts, may stifle competition, and may
result in questionable awards. The Committee believes that
veteran and service-disabled small business owners would have
greater opportunities to obtain VA contracts in an environment
that promotes, rather than stifles, competition while
maintaining the integrity of the process.
The Center for Veterans Enterprise at VA currently
maintains a database exclusively for veteran and service-
disabled veteran-owned small businesses. However, at the
present time, the veteran status of those businesses' owners
and their ownership is not verified. The Committee strongly
encourages the Department to maintain such a database and to
ensure that businesses listed within the database are verified
veteran-owned small businesses. The bill would require VA to
validate veteran and ownership status; however, the Committee
is concerned that the process not create another backlog and
directs the VA to use the most efficient and cost-effective
method to accomplish the validations including contracting with
an appropriate entity.
Department of Veterans Affairs contracting priority for
veteran-owned small businesses.--Section 102 of the bill would
establish priority of veteran and service-disabled veteran
small businesses relative to other set-aside groups. In
addition to providing veteran and service-disabled veteran-
owned small businesses priority over all other set-aside groups
such as, section 8(a), HUBZONE, and Women-owned small
businesses as defined by the Small Business Act, the Committee
intends that any veteran or service-disabled veteran-owned
small business that also qualifies under another category be
given priority within that category in VA procurement.
TITLE II--MEMORIAL AFFAIRS
Eligibility of Indian tribal organizations for grants for
the establishment of veterans cemeteries on trust lands.--
Section 201 of the bill would authorize the Secretary of
Veterans Affairs to make grants to tribal organizations to
assist them in establishing, expanding, or improving veterans'
cemeteries on trust lands.
The Department of Veterans Affairs' State Cemetery Grants
Program (SCGP) was established in 1978 to complement VA's
National Cemetery Administration. The program assists states
with building or improving state veterans cemeteries. VA will
pay for the construction costs; states are responsible for
providing the land and ongoing operating and maintenance
expenses of the cemeteries. There are currently 60 state
cemeteries and two under construction; states are planning to
open 18 new state veterans' cemeteries between 2007 and 2010.
Due to the success of the State Cemetery Grants Program,
Congress made the program permanent in Public Law 108-183.
However, tribal governments are not considered eligible for
state cemetery grants. Section 201 would provide Native
American veterans the opportunity to be buried in a veterans
cemetery located on trust land. As a condition of being awarded
a grant under the SCGP, the tribal organization would be
required to submit the necessary grant application and meet
related requirements similar to any other state jurisdiction.
Repeal of expiration and expanded application of Department
of Veterans Affairs benefit for government markers or
headstones for marked graves of veterans buried in private
cemeteries.--Section 202 of the bill would make permanent the
authority of the Secretary of Veterans Affairs to furnish a
marker or headstone for already-marked graves of veterans
interred in private cemeteries. The current authorization
expires on December 31, 2006. This section would also extend
the program to include veterans who died between November 1,
1990 and September 10, 2001, and who are interred in a marked
grave at a private cemetery.
Between November 1, 1990 and September 10, 2001, the
authority to provide a headstone or marker at a private
cemetery was limited to the unmarked graves of veterans, or to
commemorate the grave of an eligible veteran whose remains were
unavailable. If a veteran's family had purchased a private
marker, VA did not have the authority to furnish one from the
government. Public Law 107-103 established a 5-year program
requiring the Secretary to furnish a marker to those families
who request a government marker for the marked grave of a
veteran at a private cemetery who died on or after the date of
the law's enactment, December 27, 2001. With Public Law 107-
330, Congress made the provision retroactive to September 11,
2001. Based upon VA's review there was no significant increase
in requests for additional grave markers with the passage of
Public Law 107-330. VA supports extending the authority in
order to contribute to its ability to provide veterans and
their families with symbolic expressions of remembrance.
Provision of government memorial headstones or markers for
deceased dependent children of veterans whose remains are
unavailable for burial.--Section 203 of the bill would
authorize the Secretary of Veterans Affairs to permit the
placement of a memorial headstone or marker in a national
cemetery when a child's remains are unavailable for burial. If
feasible, VA would beauthorized to add a memorial inscription
to a veteran's headstone rather than providing a separate marker for
the minor child.
Currently, VA may provide a memorial headstone or marker
for a veteran, spouse, or surviving spouse when remains are
unavailable. However, if a spouse and child die at the same
time and in the same manner, and the remains for neither are
available, a veteran cannot receive a memorial headstone
honoring the child. This section would correct an inequity in
current law. Since 2002, VA has received three such requests.
TITLE III--VETERANS' EMPLOYMENT AND TRAINING
Professional qualifications for Service-Disabled Veterans'
Outreach Program Specialists and Local Veterans' Employment
Representatives.--Section 301 of the bill would set non-
mandatory standards for hiring of Disabled Veterans Outreach
Program Specialists (DVOPS) and Local Veterans Employment
Representatives (LVERs), as well as training requirement and
related veterans employment issues. The Department of Labor's
Veterans' Employment and Training Service (VETS) annually
provides over $160 million in staffing grants to states to
furnish employment services to veterans, usually through state
workforce centers. These federal grants provided to states fund
DVOPS and LVERs.
DVOPS and LVERs are usually employees of the state
employment services and have qualifications and pay scales that
can vary significantly. While data indicates no obvious
correlation between salaries and performance in placing
veterans in jobs, the Committee believes that as part of the
overall goal of improving DVOPS and LVER performance
nationally, it is time for VETS to provide states with
recommended qualifications for employees who hold those
positions.
Public Law 107-288 created greater flexibility for states
in administering employment services to veterans. The
Committee, however, is concerned with some states' performance
and slow progress with respect to fully implementing the
provisions of Public Law 107-288. Moreover, through site
visits, Government Accountability Office reports, and oversight
hearings the Committee has received compelling testimony
describing numerous challenges to the veterans' state grant
program, including lack of data gathering and reporting
systems, inability to provide incentive awards in certain
states and high staff turnover with declining resources to
provide training.
The Committee intends that this section will improve the
state grant program for DVOPS and LVERs by setting suggested
hiring and retention guidelines as requirements for grants,
implementing a demonstration contract program in areas of high
veteran unemployment, and revising the current incentive award
program.
This section would require the Department of Labor, through
VETS, to set guidelines for states for standards of initial
hires as well as training requirements for those currently on
the job. While the Committee considered requiring VETS to set
mandatory qualifications, the Committee determined that doing
so might be counter-productive at this time. However, the
Committee expects VETS to strongly encourage and if needed
assist the states to implement such workforce development
modifications and upgrade their respective staff training and
qualification standards.
Rules for part-time employment for Disabled Veterans'
Outreach Program Specialists and Local Veterans' Employment
Representatives.--Section 302 of the bill would clarify the
hiring of part-time DVOPS and LVERs. Certain provisions of
Public Law 107-288 allowed states to create part-time positions
for DVOPS and LVERs. The intent of this provision was to create
half-time employees to provide greater geographic distribution
throughout states. However, some states have created positions
that are less than half-time. The Committee believes that half-
time employees are needed to effectively fulfill the objectives
of the programs.
State licensing and certification programs for veterans.--
Section 303 of the bill would require states to establish
licensing and certification programs for veterans as a
condition of receiving a grant under the VETS program. Many
veterans receive extensive training and experience during their
military service. The Committee believes that veterans who have
received such training should be able to receive credit for
such training when applying for a state license or
certification after leaving military service.
Training of new Disabled Veterans' Outreach Program
Specialists and Local Veterans' Employment Representatives by
National Veterans' Training Institute required.--Section 304 of
the bill would require states to ensure DVOPS and LVERs are
properly trained to provide job placement services. The
Committee believes that initial and refresher training is
critical to providing quality job training services, especially
for those performing as DVOPS. While it is less challenging to
place job seekers, including veterans, in low skill/low wage
jobs, understanding veterans' unique experiences and
qualifications obtained during military service and matching
veterans with training and job opportunities that provide
upward mobility is more demanding. Such service requires a more
sophisticated approach that can be facilitated by appropriate
training at the National Veterans' Training Institute (NVTI).
The Committee realizes that the provisions of this section will
likely increase the training services provided by NVTI and the
Committee expects the Department of Labor to request additional
funding for NVTI in the Administration's budget. Section 304
would also allow VETS to withhold funding to states for any
employee who has not completed training at NVTI. The Committee
expects that any funding withheld would be withheld in future
grants, not recaptured from current year funding.
Matters for inclusion in annual report on VETS program.--
Section 305 of the bill would add several detailed reporting
requirements to measure the effectiveness of the DVOP and LVER
program. This section requires VETS to provide additional data
in its annual reports. Such data shall include information
concerning employment status in 90 and 180 day increments, the
percentage of veterans who are seeking employment in each
state, and the number of veterans referred to small business
assistance. This will enable VETS and Congress to measure the
success of the DVOPS and LVER programs in meeting employment
goals.
Demonstration project on contracting for placement of
certain service-disabled veterans.--Section 306 of the bill
would authorize VETS to contract with private entities for
placement services using unobligated funds. One persistent
complaint regarding the inconsistent performance of the DVOP
and LVER programs is that the lack of competition does not
encourage high quality performance. Authorizing VETS to
contract with nongovernmental entities will create not only
additional placement resources, but also incentives for state
employment services to improve their operations.
Performance incentive awards for employment service
offices.--Section 307 of the bill would expand the types of
performance incentive awards available to state employment
services. The Jobs for Veterans Act passed in 2002 (Public Law
107-288 enacted in 2002) authorized states to use up to one
percent of the state grant to reward high-performing employees.
The Committee has become aware that some state constitutions
and collective bargaining agreements prohibit such awards. The
Committee has long held that providing incentives awards are
appropriate techniques to promote improved performance.
Therefore, this section would authorize states to use the
incentive money to reward not just individuals, but also
offices whose performance exceeds the norm. In the case of
awards to offices, the funds are not restricted in the type of
use, but the Committee believes such use should reflect the
performance of the entire office, not benefit one specific
individual.
Department of Labor implementation of priority of service
for veterans requirement.--Section 308 of the bill would
require the Department of Labor to establish regulations
governing the Jobs for Veterans Act (Public Law 107-288). Since
its enactment in 2002, the Secretary of Labor has not
promulgated regulations concerning priority of service for
veterans within Department of Labor training programs. The
Committee expects the Department of Labor to promulgate
regulations no later than 1 year after the date of enactment to
ensure veterans priority in all applicable Department of Labor
programs.
Demonstration project on credentialing and licensure of
veterans.--Section 309 of the bill would require the VETS to
begin a program to promote credentialing and licensing of
veterans in occupations related to their military training and
experience. VETS would be required to identify a minimum of 10
military occupational specialties (MOS) to begin the program.
Over 400 MOS have civilian counterparts; however, often former
servicemembers are not able to obtain licenses or certification
for the civilian equivalents based on their military experience
and training. This lack of recognition and credit for military
service is not only frustrating and expensive for veterans
seeking civilian employment, but it costs the nation in terms
of duplicative training and lost time on-the-job. For example,
the Army spends several thousand dollars to train the
equivalent of a long-haul truck driver. The Navy spends over
$50,000 to train a medical corpsman roughly equivalent to an
emergency medical technician. To require these individuals to
repeat training already completed and ignore several years of
experience is simply unwise. While states may require training
and education beyond what is gained in military service to
qualify for state licenses, servicemembers should be given
appropriate credit for education, training, and experience
gained in military service.
The Committee has found that many servicemembers who
separate from the military and enter civilian life would prefer
to seek employment in the civilian workforce that reflects
generally the skills and experience they gained during their
military service rather than seek a degree at a traditional
post-secondary institution. To assist with the transition
process toward civilian employment, this section would
authorize VETS to conduct a pilot project to identify MOS-
equivalent industries facing a critical shortage and high-
growth industries. Once VETS identifies the MOS's, it must work
with states and private industries to credit former
servicemembers in certain MOS's for education, training, and
experience to receive licensing and credentialing in those
industries. At the conclusion of this study the Committee
expects that states would have programs established that assist
veterans in their efforts to receive proper civilian licenses
and certifications based on their military service.
TITLE IV--EDUCATION
Exception for institutions offering Government-sponsored
nonaccredited courses to requirement of refunding unused
tuition.--Section 401 of the bill would clarify the rules
regarding refunds by educational institutions. The Committee is
concerned about the complex and time-consuming claims process
that has developed within the VA's Education Service due in
part to legislation, certain administrative decisions, and
outdated regulations. One issue in particular brought to the
Committee's attention by the National Association of State
Approving Agencies, is that valid education programs offered by
government or quasi-government entities are denied approval
based on the requirement that the institution have a pro-rata
refund policy. A change in this policy would allow greater
flexibility in approving programs that a veteran may obtain the
skills and knowledge to enter into a profession or occupation.
Extension of work-study allowance.--Section 402 of the bill
would extend several existing work-study options that expire on
December 27, 2006. VA hires veteran-students under the work-
study program in certain VA programs. Under Public Law 107-103,
the Veterans Education and Benefits Expansion Act of 2001,
opportunities for veteran-students to use their work-study
funding were expanded to include positions at State Approving
Agencies, state and national cemeteries, and state veterans
homes. These options expire on December 27, 2006. Although the
program has been successful, the Committee does not have
funding available to continue this program on a permanent
basis. So as not to cut off a work-study program for these
veterans during a school year, section 402 would extend work-
study options through June 30, 2007.
Report on improvement in administration of educational
assistance benefits.--Section 403 of the bill would require VA
to submit a report to Congress on ways to streamline the
administration of VA education benefits. The Committee has
concerns with regard to how VA administers its education
programs. In testimony at a field hearing held in Rogers,
Arkansas, Dr. Steve Kime, Vice President (retired) of the
American Association of State Colleges and Universities, noted
that VA regulations often treat veterans and education
institutions as potential criminals. He also noted that these
regulations reflected VA's experience following World War II
when large numbers of veterans were thrust into an education
system that had little oversight. Dr. Kime testified that
today's education system is much more regulated and policed in
terms of accreditation and accountability and it is time to
revise VA regulations and processes to reflect that change.
Therefore, section 403 would require the VA to review all
administrative and policy procedures within the education
programs to streamline the process and offer veterans more
opportunities.
Restoration of lost entitlement for individuals who had to
discontinue a course of education because of being ordered to
full-time National Guard duty.--Section 404 of the bill would
authorize VA to restore Chapter 35 education entitlements lost
by surviving spouses and dependents due to being called to
active duty. Reservists and National Guardsmen who are
attending courses of study and using Chapter 30 benefits are
able to have their entitlement restored if the course was
involuntarily interrupted due to activation. Currently,
reservists arenot eligible to have their entitlement restored
if they are receiving education benefits under Chapter 35 of title 38,
United States Code, as the survivors or dependents of veterans. This
section would extend restoration of entitlement to these National Guard
and Reserve members as well.
Section-by-Section Analysis
Section 1 of the bill would provide that this Act may be
cited as the ``Veterans Small Business and Employment Promotion
Act of 2006.''
Section 101(a) of the bill would add a new subchapter 8127,
``Small business concerns owned and controlled by veterans;
Department contracting goals and preferences,'' to title 38,
United States Code. The following sections would be added to
chapter 81 of title 38, United States Code:
New subsection 8127(a) would require the Secretary to
establish contracting and subcontracting goals for each fiscal
year for small business contracts with small businesses owned
and controlled by veterans and service-disabled veterans. This
subsection would also require the performance appraisal of
senior officials and Assistant Secretaries with procurement
authority to include whether the annual contracting goals of
their Administrations or organizations were met. Finally, this
subsection would require VA to conduct reviews of contracts and
subcontracts to verify that contracts and subcontracts were
actually awarded to veterans' businesses as outlined in their
contract or subcontract. This information would be maintained
in a list that the Secretary would make publicly available.
New subsection 8127(b) would allow VA to award non-
competitive contracts to small businesses owned and controlled
by veterans when the amount of the contract is below the
simplified acquisition threshold as defined in section 4 of the
Office of Federal Procurement Policy Act (41 U.S.C. Sec. 403).
New subsection 8127(c) would allow contracting officers to
award sole source contracts to small businesses owned and
controlled by veterans to meet the annual goal set by the
Secretary for contracts above the simplified acquisition
threshold but below $5,000,000.
New subsection 8127(d) would allow contracting officers to
restrict competition to small businesses owned and controlled
by veterans if the contracting officer has an expectation that
two or more businesses owned by veterans will submit offers for
the contract.
New subsection 8127(e) would require small businesses owned
and controlled by veterans to be listed in the database
maintained by the Secretary in order to be awarded a contract
under this new section.
New subsection 8127(f) would require the Secretary to
maintain a database of small businesses owned and controlled by
veterans. The Secretary would verify that each small business
is owned and controlled by a veteran and in the case of a
service-disabled veteran; the Secretary would verify the
veteran's service-disabled status. The database would be made
available to all Federal departments and agencies and certain
types of information would also be available to the public.
New subsection 8127(g) would bar any small business that
misrepresented itself to the Department as a small business
owned and controlled by a veteran from contracting with the
Department for a period of 5 years.
New subsection 8127(h) would continue to recognize a small
business owned and controlled by a veteran as such after the
death of the veteran if the surviving spouse of the veteran
acquires ownership. This small business would be recognized as
a veteran-owned or service-disabled veteran-owned small
business until the earliest of the following: (a) the date on
which the surviving spouse remarries; (b) the date the
surviving spouse relinquishes ownership; or (c) 10 years after
the date of the veteran's death.
New subsection 8127(i) would require the Secretary to end
any contract on the date on which the performance of the term
of the contract is complete if the ownership or control of the
veteran-owned small business changes during the period of the
contract. If the contract contains an option or options to
extend the contract, such contract may not be extended for more
than 1 year.
New subsection 8127(j) would give preference to small
businesses owned and controlled by veterans relative to other
set aside groups and within other set aside groups when another
contracting preference category is being used.
New subsection 8127(k) would require the Secretary to
provide quarterly reports to the Committees on Veterans Affairs
that would include percentage of contracts awarded by the whole
Department and each Administration of the Department to small
businesses owned and controlled by veterans and service-
disabled veterans.
New subsection 8127(l) would provide definitions for
``small business concern'' and ``small business owned and
controlled by veterans.''
Section 101(b) of the bill would provide a transition rule
that would allow one year after date of enactment for the small
businesses currently listed on the current database to be
removed if found not to be a small business owned and
controlled by a veteran.
Section 101(c) of the bill would require the Comptroller
General to conduct a study on the efforts of the Secretary to
meet the goals established in section 8127 for the first 3
fiscal years after date of enactment and report to Congress on
January 31 of each of such year. Not later than 90 days after
the end of the study the Comptroller General shall submit a
report to Congress on the findings of the study.
Section 101(d) of the bill would amend the chapter heading
to include the new section 8127.
Section 102 of the bill would create a new section 8128,
``Contracting priority for small business concerns owned and
controlled by veterans,'' in title 38, United States Code. The
new Subchapter would give priority to small businesses owned
and controlled by veterans.
Section 103 of the bill would make sections 101 and 102
effective 180 days after the date of enactment of this act.
Section 201 of the bill would amend section 2408 of title
38, United States Code, by adding a new subsection (f), which
would authorize the Secretary to make grants to any tribal
organization to assist the tribal organization in establishing,
expanding, or improving under the same manner and under the
same conditions as grants to states are made.
Section 202(a) of the bill would amend section 2306(d) of
title 38, United States Code, by striking paragraphs (3) and
(4).
Section 202(b) of the bill would amend subsection (d) of
section 502 of the Veterans Education and Benefits Expansion
Act of 2001 (Public Law 107-103; 38 U.S.C. 2306 note) by
striking ``September 11, 2001'' and inserting ``November 1,
1990''.
Section 202(c) of the bill would amend section 2306(d) of
title 38, United States Code, by permitting a headstone or a
marker on the veteran's grave.
Section 202(d) of the bill would require that a headstone
or marker provided under subsection 2306(c) of title 38, United
States Code, be placed as close as possible or practicable to
the grave.
Section 202(e) of the bill would permit delivery of
headstones or markers to a receiving agent for the cemetery.
Section 202(f) of the bill would require that the headstone
or marker furnished would be selected by the individual making
the request.
Section 202(g) of the bill would make the effective date of
these provisions as if enacted in section 502 of the Veterans
Education and Benefits Expansion Act of 2001 (Public Law 107-
103; 38 U.S.C. 2306 note).
Section 203(a)(1) of the bill would amend subsection (b) of
section 2306 of title 38, United States Code, by adding a new
subparagraph (C) to paragraph (2), ``eligible dependent child
of a veteran.''
Section 203(a)(2) of the bill would add at the end of
paragraph (4) a new subparagraph (C) defining `eligible
dependent child' as a child who (1) is under 21 years of age,
or under 23 years of age if pursuing a course of instruction at
an approved educational institution; or (2) became permanently
physically or mentally disabled and incapable of self-support
before reaching 21 years of age, or before reaching 23 years of
age if pursuing a full-time course of instruction at an
approved educational institution''.
Section 203(b) of the bill would amend subsection (f) of
such section by adding ``or eligible dependent child'' after
``surviving spouse'' both places it appears.
Section 203(c) of the bill would provide that subsections
(a) and (b) apply with respect to individuals dying after the
date of enactment of this Act.
Section 301(a) of the bill would require the Secretary of
Labor to establish suggested guidelines for the professional
qualifications of Disabled Veterans' Outreach Program
Specialists (DVOPS) and Local Veterans' Employment
Representatives (LVERs) in the States.
Section 301(b) of the bill would require states to submit
the professional qualifications and training for DVOPS and
LVERs as a condition for receipt of a grant or contract from
the Veterans' Employment and Training Service (VETS).
Section 301(c) of the bill would require the Secretary of
Labor to establish the guidelines for qualifications for DVOPS
and LVERs 180 days after the enactment of this act.
Section 302 of the bill would clarify that part-time
employment of DVOPS and LVERs is half-time.
Section 303 of the bill would require states to provide
licensing and certification programs for veterans as a
condition of a grant or contract from VETS not later than the
second program year after the enactment of this Act.
Section 304(a) of the bill, as a condition of a grant or
contract from VETS, would require all new DVOPS or LVERs hired
after enactment to complete training provided by the National
Veterans Training Institute (NVTI). New hires would have three
years to complete training. If the Secretary of Labor did not
provide an exception to a state, the Secretary may reduce the
amount of the grant or contract for the state for non-
compliance.
Section 304(b) of the bill would require the states to
submit information of employee training at NVTI to VETS.
Section 304(c) of the bill would require all DVOPS and
LVERs who are hired or designated after enactment of this Act
to receive NVTI training. DVOPS and LVERs with 5 years of
service would be exempt from the requirement and those with
less than 5 years would be required to complete training within
5 years of enactment.
Section 305 of the bill would make additions to the annual
VETS program report which would include: the number of veterans
and service-disabled veterans who have requestedtraining; the
number and percentage of veterans participating in services; the
percentage of people and veterans seeking employment in each state; the
number of veterans referred to small business services; the number of
veterans and service-disabled veterans who remained employed after 90
and 180 days; and the average starting wages of veterans and service-
disabled veterans and the wage after 180 days.
Section 306(a) of the bill would authorize a 3-year
demonstration project to allow the Assistant Secretary of VETS
to enter into contracts with non-governmental entities to carry
out placement services in high-unemployment areas. The
Secretary would be able to use procedures other than
competitive to enter into such contracts. The bill would give
priority to veteran-owned small businesses in the small
business data base maintained by the Secretary of Veterans
Affairs. The Secretary would be authorized to use up to
$3,000,000 annually of unobligated funds appropriated for the
State grant program.
Section 306(b) of the bill would direct the Comptroller
General to report on the demonstration project not later than
four years after the date of enactment of this Act.
Section 307 of the bill would allow the Assistant Secretary
of VETS to give incentive awards to employment service offices
instead of only to eligible employees.
Section 308 of the bill would require the Secretary of
Labor to promulgate regulations on the implementation of
priority of service for veterans in Department of Labor
programs.
Section 309(a) of the bill would establish a new section
4114, ``Demonstration project on credentialing and licensure of
veterans,'' in title 38, United States Code. The following
section would be added to chapter 41 of title 38, United States
Code:
New subsection 4114(a) would require the Assistant
Secretary for VETS to establish and carry out a demonstration
project on credentialing to facilitate the seamless transition
of servicemembers into civilian employment.
New subsection 4114(b) would require the Assistant
Secretary for VETS to select not fewer than ten military
occupations that require a skill or set of skills that would
lead to civilian employment with a high growth or high worker
demand industry for the demonstration project. The Assistant
Secretary would be required to consult with Federal, State and
industry officials to identify requirements for credentials,
certifications and licenses that would be required in both the
civilian and military occupation when identifying occupations
for the demonstration project.
New subsection 4114(c) would require the Assistant
Secretary for VETS to cooperate with Federal, State and
industry officials to reduce or eliminate barriers veterans may
face when seeking to obtain a credential, certification or
license within an occupation that the veteran gained experience
and training in while serving in the Armed Forces.
New subsection 4114(d) would allow the Assistant Secretary
for VETS to establish a task force to assist with the
demonstration project.
New subsection 4114(e) would require the Assistant
Secretary for VETS to consult with appropriate Federal
departments and agencies, State officials, private-sector
employers, labor organizations and industry trade associations.
New subsection 4114(f) would allow the Assistant Secretary
for VETS to enter into a contract to carry out the
demonstration project.
New subsection 4114(g) would require the demonstration
project to begin 60 days after date of enactment and end on
September 30, 2009.
New subsection 4114(h) would authorize $1,000,000 for each
of the fiscal years 2007 through 2009 of appropriated funds for
the demonstration project.
Section 309(b) of the bill would add a representative of
the National Governors Association to the Advisory Committee on
Veterans Employment, Training, and Employer Outreach of the
Department of Labor.
Section 309(c) of the bill would add ``4114. Demonstration
project of credentialing and licensure of veterans.'' to the
table of contents at the beginning of chapter 41 of title 38,
United States Code.
Section 401 of the bill would exempt Federal, state or
local government institutions or institutions primarily
supported by funding from a Federal, state of local government
entity from the rule that requires a non-accredited education
program to have a pro-rata refund policy.
Section 402 of the bill would extend workstudy benefits for
jobs at VA cemeteries, state veterans homes, and State
Approving Agencies until June 30, 2007.
Section 403 of the bill would require the Secretary to
report to Congress 180 days after enactment of this Act on ways
to streamline the administrative processes and procedures of
the veterans' education benefits.
Section 404 of the bill would restore lost entitlement to
individuals receiving education benefits under chapter 35 of
title 38, United States Code who were called to active duty
under title 32, United States Code, after September 11, 2001.
Performance Goals and Objectives
The reported bill would authorize benefits and program
enhancements under laws administered by the Secretary of
Veterans Affairs and the Secretary of Labor. The Department of
Veterans Affairs' performance goals and objectives are
established in annual performance plans and are subject to the
Committee's regular oversight and evaluation by the U.S.
Government Accountability Office. VA also publishes a
performance and accountability report for each fiscal year. The
Committee conducts regular oversight and evaluation of the
Department of Veterans Affairs and the Veterans' Employment and
Training Service under the Department of Labor.
Statements of the Views of the Administration
----------
Statement of William F. Tuerk, Under Secretary for Memorial Affairs,
Department of Veterans Affairs
h.r. 601
H.R. 601, the ``Native American Veterans Cemetery Act of
2005,'' would authorize the Secretary of Veterans Affairs to
make grants to Native American tribal organizations to assist
them in establishing, expanding, or improving veterans'
cemeteries on trust lands in the same manner and under the same
conditions as grants to states are made under 38 U.S.C.
Sec. 2408. We strongly support enactment of this bill.
The cemetery grants program has proven to be an effective
way of making the option of veterans cemetery burial available
in locations not conveniently served by our national
cemeteries. H.R. 601 would create another means of
accommodating the burial needs of Native American veterans who
wish to be buried in tribal lands.
While we are unsure of the number of grant applications
that may be prompted by the bill's enactment, we do not assume
its passage would result in the appropriation of additional
funds for the cemetery grants program. Hence, we estimate its
enactment would be budget neutral.
h.r. 5038
Section 2(b) of H.R. 5038, the ``Veterans' Memorial Marker
Act of 2006,'' would change the applicability date of VA's
current authority to provide a Government headstone or marker
for the private cemetery grave of a veteran regardless of
whether the grave has been marked at private expense. Under
current law, this authority extends only to veterans whose
deaths occurred on or after September 11, 2001. This provision
of the bill would authorize VA to furnish such markers for the
graves of veterans who died on or after November 1, 1990. We
support enactment of this provision of the bill.
Under current law, if a veteran died before September 11,
2001, VA is authorized to furnish a Government headstone or
marker only if the veteran's grave is unmarked. Although this
law has allowed VA to begin to meet the needs of families who
view the Government-furnished marker as a means of honoring and
publicly recognizing a veteran's military service, VA is now in
the difficult position of having to deny a benefit based solely
on when a veteran died.
Moreover, the law has never precluded the addition of a
privately purchased headstone to a grave after placement of a
Government-furnished marker, resulting in double marking.
However, when a private marker had been placed in the first
instance, a Government marker may not be provided if the
veteran died before September 11, 2001. We believe this creates
an arbitrary distinction disadvantaging families who promptly
obtain a private marker.
From October 18, 1979, until November 1, 1990, with the
enactment of the Omnibus Budget and Reconciliation Act of 1990,
VA paid a headstone or marker allowance to those families who
purchased a private headstone or marker in lieu of a Government
headstone or marker. Those families all had the opportunity to
benefit from the VA-marker program. This provision of the bill
would benefit families of those veterans who died between
November 1, 1990, and September 11, 2001. The extension of the
authority to cover deaths since November 1, 1990, will assist
VA in providing uniform benefits to veterans, regardless of the
date of their death, and will meet public expectations for
honoring veterans and their service to the Nation.
We estimate that enactment of this provision of the bill
would cost $113,000 during FY 2007, $286,000 over the 5-year
period FY 2007 through FY 2011, and $286,000 over the 10-year
period FY 2007 through 2016. VA pays for headstones and markers
with funds from the Compensation and Pension appropriation
account.
VA's authority to provide a Government headstone or marker
for the graves of eligible veterans buried in private
cemeteries, regardless of whether the grave is already marked
with a privately purchased marker, will expire on December 31,
2006. Section 2(a) of this bill would extend VA's authority to
furnish the second marker benefit by one year. We support
enactment of this provision of the bill. We would also
recommend that VA be provided permanent authority to furnish
the second marker benefit.
Although the headstone and marker benefit was originally
intended to ensure that no veteran's grave remains unmarked, it
has evolved into one that recognizes in death the service and
sacrifices of those who served our Nation. Since the headstone
and marker program's transfer to VA from the Department of the
Army in 1973, VA has furnished more than 8.7 million headstones
and markers.
The expanded second headstone or marker benefit has not
resulted in a significant increase in demand for headstones and
markers or appreciable costs for the headstone and marker
program. Based on actual data from FY 2005, it is estimated
that about 5,000 headstones or markers would be provided in
2007 at an average cost of $100 per marker as a result of the
one-year reauthorization. The fiscal and administrative costs
to provide this benefit to families are nominal. The percentage
of eligible veterans receiving a Government-furnished marker at
private cemeteries has remained fairly constant in the years
prior to and during the expanded authority for this benefit.
We would also like to suggest a revision to the statutory
language in 38 U.S.C. Sec. 2306, to accommodate the practical
needs of a veteran's family in obtaining a Government-furnished
marker. VA promulgated 38 CFR Sec. 38.631 to notify the public
of the second-marker-benefit authority and to advise how VA
would administer the benefit. The regulation states that VA
will furnish its full product line of Government markers, which
includes all available types of headstones and markers, in
fulfilling requests for a ``marker'' as described in section
2306(d)(1). This clarification ensures that no otherwise
eligible veteran is denied a second headstone or marker due to
limitations of the size and type of headstone or marker that
the grave can accommodate and that families are able to select
the headstone or marker type preferred for the previously-
marked grave of their loved one in the same manner as for an
unmarked grave. Furthermore, the VA regulation clarified that,
in cases where it was not feasible to place the marker ``on the
grave'' as stated in section 2306(d)(1), a Government-furnished
marker would be provided for those graves without adequate
space for a second marker if the individual making the request
certified on the application that the marker will be placed
``as close to the grave as possible within the grounds of the
private cemetery.'' Additionally, the regulation notified the
public that VA would deliver a marker to the cemetery where the
grave is located or, if necessary, ``to a receiving agent for
delivery to the cemetery'' to accommodate the needs of the
veteran's family. We recommend that Congress ratify VA's
authority in this regard by incorporating into the statute the
regulatory language in section 38.631 that discusses delivery,
placement, and types of Government markers.
Moreover, in order to eliminate ambiguity regarding the
reference to ``marker'' in the statute, we recommend that
Congress revise section 2306 to clarify that the Government is
authorized to furnish a ``headstone or marker,'' as opposed to
only a Government ``marker,'' for privately-marked graves of
eligible veterans interred in private cemeteries.
Section 3 of this bill would authorize VA to provide an
appropriate memorial headstone or marker to honor the memory of
a deceased eligible dependent child of a veteran, when the
child's remains are unavailable for burial. This authority
would permit the placement of a memorial headstone or marker
for such an individual in a national or state veterans'
cemetery. The bill would define the term ``eligible dependent
child'' as a child under 21 years of age, or under 23 years of
age if pursuing a course of instruction at an approved
educational institution, or a child who became permanently
physically or mentally disabled and incapable of self-support
before reaching 21 years of age, or before reaching 23 years of
age if pursuing a course of instruction at an approved
educational institution.
VA currently may provide a memorial headstone or marker for
the purpose of commemorating a veteran whose remains are
unavailable for burial, for placement in a national, state,
local, or private cemetery. Section 401 of Public Law 105-368,
the ``Veterans Programs Enhancement Act of 1998,'' expanded
eligibility for memorial headstones or markers to include the
spouse or surviving spouse of a veteran, where the memorial
headstone or marker is to be placed in a national or state
veterans' cemetery.
Under current law, VA may not honor the request for a
memorial headstone or marker from a veteran who wishes to
memorialize his or her dependent child in a VA national
cemetery or state veterans' cemetery, when the child's remains
are unavailable for burial. Such a child would be eligible for
burial in a national or state veterans' cemetery were his or
her remains available. If the spouse and a child of a veteran
die at the same time and in the same manner, and the remains of
neither is available, it would, in our view, be inequitable to
provide a memorial headstone or marker to commemorate the
spouse, but not the child. Section 3 of the draft bill would
make eligibility for memorial headstones and markers for
dependent children parallel to eligibility of such persons for
burial in a national cemetery under 38 U.S.C. Sec. 2402(5). We
also note that, although the remarried spouse of a veteran is
eligible to be buried in a national cemetery, this bill would
not authorize VA to furnish a memorial marker for the remarried
spouse of a veteran when the remains are unavailable. In order
to provide consistency in eligibility requirements for burial
and headstone and marker benefits, we recommend that Congress
authorize VA to furnish a memorial marker for the remarried
spouse of a veteran when the remains are unavailable.
Also, section 3 of the bill would authorize VA to add a
memorial inscription to a veteran's headstone or marker or
memorial headstone or marker, if feasible, rather than
furnishing a separate headstone or marker for the veteran's
dependent child. Such authorization is already provided with
respect to a veteran's surviving spouse.
The cost for these additional benefits would be nominal. We
do not anticipate receiving many requests for memorial
headstones or markers for children. In 2002, VA received two
requests for memorial headstones or markers from veterans who
wanted to memorialize their children in a VA national cemetery.
In 2003, VA received one request. The average cost of a
memorial headstone or marker, including transportation, is
currently $92. Memorial headstones or markers are paid for out
of the Compensation and Pension appropriation account.
----------
Statement of Gordon H. Mansfield, Deputy Secretary of Veterans Affairs,
Department of Veterans Affairs
Good afternoon Mr. Chairman and Members of the
Subcommittee: Thank you for inviting me here today to present
the Administration's views on (1) H.R. 4791, (2) a draft
education benefits bill, and (3) a proposed amendment to H.R.
3082, each of which would affect Department of Veterans Affairs
(VA) programs of benefits and services. I understand two other
draft bills pertaining to programs administered by the
Department of Labor (DOL) also are the subject of today's
hearing. VA defers to DOL as to those draft bills.
Before I discuss the bills the Subcommittee is considering
today, I would like to note that, as you know, these measures
would affect direct spending and receipts. Accordingly, the
support VA expresses here for particular bill provisions is
contingent on accommodating the provisions within the
President's Budget request if the costs are discretionary, and
would require acceptable offsetting legislation if the costs
are mandatory.
exception for government-supported institutions administering
nonaccredited courses to requirement of refunding unused tuition
Section 3 of the draft bill would exempt Federal, State, or
local government institutions, as well as those primarily
supported by Federal. State, or local government funds, from
the requirement that public or private, profit or nonprofit,
educational institutions refund the unused portion of tuition,
fees, and other charges for nonaccredited courses to an
individual if that individual fails to enter the course or
withdraws or is discontinued therefrom any time prior to
completion of the course.
Under current law, such institutions must comply with the
refund policy requirements for nonaccredited courses pursuant
to chapter 36, United States Code.
VA cannot support this section since we are aware of no
reason why veterans should be disadvantaged by not receiving
refunds in appropriate circumstances merely because the
institution involved is a governmental entity or supported with
government funds.
extension and provision of additional qualifying work-study activities
for veterans
Section 5 of the draft bill would extend through December
26, 2011, work-study opportunities for veteran-students and
eligible dependents to include: outreach services furnished by
State approving agencies to servicemembers and veterans;
activities for veteran-students and/or dependents (who have
declared an academic major) within the department of an
academic discipline that complements and reinforces the program
of education pursued by the student; services in connection
with provision of domiciliary care and nursing home and
hospital care to veterans (including state veterans' homes)
under chapter 17 of title 38, United States Code; for those
receiving educational assistance under chapter 1606 of title
10, activities relating to the administration of that chapter
at Department of Defense (DoD), Coast Guard, or National Guard
facilities; and activities relating to the administration of
national and state veterans' cemeteries. With regard to this
provision, VA has data showing that that these work-study
activities have been consistently performed and, therefore,
believe that rather than extending the ending date for these
work-study opportunities, they should be made permanent.
Under current law, VA makes additional educational
assistance allowance payments (so-called work-study allowances)
to eligible individuals who agree to perform certain specified
services, such as assisting in outreach to service members and
veterans regarding available benefits. To participate, the
individual must be pursuing a program of rehabilitation,
education, or training under chapter 30, 31, 32, 34, or 35 of
title 38 or chapter 1606 or 1607 of title 10 United States
Code.
Section 5 of the draft bill also would expand the term
``work-study activity'' for qualifying individuals to include
(a) the provision of assistance in identifying employment and
training opportunities, as well as related information and
services under the Transition Assistance Program (TAP) and the
Disabled Transition Assistance Program (DTAP) to members of the
Armed Forces being separated from active duty and their spouses
(under the supervision of a Disabled Veterans Outreach Program
(DVOP) specialist or Local Veterans Employment Representative);
and (b) any activity approved by VA in support of a Senior
Reserve Officers' Training Corps program at an educational
institution or military installation (under the supervision of
an administrator or instructor referred to in section 2111 of
title 10).
With regard to work-study students assisting with the TAP
and DTAP programs, we agree with the intent of the provision.
However, we are concerned, on the one hand, with some of the
functions the student would be permitted to perform and, on the
other hand, with certain restrictions imposed on their
performance of other functions. We don't believe, for example,
that work-study students, in most cases, could provide the
employment assistance in identifying employment and training
opportunities provided for in this section because such
assistance requires specialized training. Accordingly, we would
suggest deleting reference to such functions. Further, this
section would unnecessarily restrict use of work-study students
in support of the TAP and DTAP programs to activities under the
supervision of DOL employees. In many cases, however, VA, DoD,
or contractor personnel would be appropriate supervisors, as
well. Therefore, we would suggest including language that would
permit work-study students to assist with the TAP and DTAP
programs in ways consistent with their abilities.
Finally, with regard to using work-study students to
support Senior ROTC programs at educational institutions and
military installations, VA has no objection to this portion of
section 5.
If enacted, VA estimates section 5 of this draft bill would
cost $1.6 million during FY 2007 and $8.3 million over the
period FYs 2007-2016.
report on improvement in administration of educational assistance
benefits
Section 6 would require VA, within 90 days from the date of
enactment of the draft bill, to submit a report to Congress
that proposes methods to streamline the processes and
procedures of administering education benefits under chapters
30, 31, 32, 34, 35, and 36 of title 38 and chapters 1606 and
1607 of title 10, United States Code.
Given the breadth of the request and the complexity of the
programs in chapters 30, 31, 32, 34, 35 and 36 of title 38 and
chapters 1606 and 1607, of title 10, United States Code, it is,
we believe, unrealistic to expect such a report to be written
in 90 days. We would have no objection to this section if VA
were given 6 months in which to submit the required the report.
restoration of lost entitlement for individuals who had to discontinue
a course of education because of being ordered to full-time national
guard duty
Section 7 would make a technical amendment to restore
entitlement under the chapter 35 education benefits program
that eligible persons lost as a result of being involuntarily
ordered to full-time National Guard duty after September 11,
2001, pursuant to 32 U.S.C. Sec. 502(f).
In enacting Public Law 107-103, Congress restored education
benefits to National Guard personnel called to active duty
under specific sections of title 10, United States Code, and
extended their delimiting period for using those benefits.
Public Law 108-183 likewise extended the delimiting date for
National Guard personnel entitled to chapter 35 benefits who
had to discontinue course pursuit as a result of being called
to full time National Guard duty under section 502(f) of title
32, United States Code, but inadvertently omitted provisions
restoring entitlement for those persons as it had for similarly
circumstanced individuals called to active duty under title 10.
Section 7 would remedy this oversight. We note that the
effective date provision is clear as to the enrollment periods
to which this section applies. It is unclear, however, as to
whether there is any limit as to how far back in time the title
32 service could occur. VA recommends the effective date be
September 11, 2001, to accommodate those ordered to full-time
National Guard duty under section 512(f) of title 32 on or
after that date.
VA supports section 7 and suggests this provision be
extended to MGIB participants under section 3013(f)(2)(A), as
well.
If enacted, VA estimates section 7 of this draft bill would
cost $3 thousand during FY 2007 and $96 thousand over the
period FYs 2007-2016.
technical amendments
Section 8 contains technical corrections to the work-study
program provisions. VA has no objection to this section.
department of veterans affairs goals for participation by small
businesses owned and controlled by veterans in procurement contracts
Section 2 of H.R. 3082 would amend subchapter II of chapter
81 of title 38, United States Code, to add a new section 8127
governing VA contracting goals and preferences for
participation by small business concerns owned and controlled
by veterans and small business concerns owned and controlled by
veterans with service-connected disabilities. Section 3 would,
in addition, add a new section 8128 to such subchapter
mandating contracting priority for certain small business
concerns owned and controlled by veterans when goods and
services are being procured pursuant to contracting preferences
under title 38 or other law. Current law establishes a 3%
government-wide prime and subcontracting goal for small
business concerns owned and controlled by veterans with
service-connected disabilities.
VA supports the Amendment to H.R. 3082. However, we request
that the following changes be made before the bill moves
forward:
In Sole Source Contracts, section 8127(c), we
recommend revising the language to read that
Contracting Officers may award a contract using other
than competitive procedures. The amendment reads
``shall'' which is inconsistent with subparagraphs (b)
and (d) of this section.
In Database of Veteran-owned Businesses, section
8127(f), we recommend that subparagraph (4)(A) be
revised to read that the Secretary shall verify that
veterans own at least 51% of the business. The current
language reads ``verification that each person listed
in the database is a veteran.'' The database does not
list all persons who own the business.
In Change In Ownership or Control, section 8127(i),
we suggest replacing word ``terminate'' with ``end.''
For Federal procurement purposes, the word
``terminate'' has a very specific meaning. When an
existing term is completed, the contract ends and is
then closed out. We would further recommend revising
the section to remove the parenthetical phrase.
Currently, it leads the reader to believe that options
may be executed after the change of ownership, which we
believe is not the intent of the section. The following
paragraph establishes that after a change in ownership,
one option may be exercised. We understand this may be
necessary to accomplish re-procurement.
In Quarterly Reports, section 8127(k), we recommend
revising subparagraphs (1) through (3) to read
``percentage of contract dollars awarded.'' This has
very different meaning than ``percentage of contracts
awarded'' and is consistent with reporting of all small
business program accomplishments.
We do have some concern about the Quarterly Reports. This
amendment will establish a single, consolidated goal which will
collect information from both prime and subcontract actions
with veterans and a separate consolidated goal for
accomplishments with service-disabled veterans. Currently, most
prime contractors report their subcontracting actions annually
or semi-annually. To obtain quarterly reports from VA's prime
contractors will require contract modifications which will cost
the Department as this quarterly reporting will be unique in
Federal government. These same contractors will continue to
report accomplishments with other small business programs
annually or semi-annually. We believe this will be both costly
and confusing for prime contractor personnel. Therefore, we
request that the amendment be revised to require annual
reporting on these contracting accomplishments, which should
not add additional reporting burdens on our prime contractors.
In section 8127(l), Definitions, we have concern with the
language where it attempts to define `small business concern
owned and controlled by veterans.' In subparagraph (2)(B, it
addresses ``the management and daily business operations of
which are controlled by one or more veterans or, in the case of
a veteran with a service-connected disability that is permanent
and severe, the spouse of such veteran.'' This implies that
when a veteran has such a disability, his/her spouse must
control daily business operations to be considered. We do not
believe that was the intent of the committee. Public Law 106-
50, ``The Veterans Entrepreneurship and Small Business
Development Act of 1999,'' and implementing regulations define
small businesses owned and controlled by service-disabled
veterans to include situations where there is a spouse or
permanent caregiver who is legally designated in writing to
undertake responsibility for managing the well-being of the
service disabled veteran. We request the language be amended to
reflect that situation.
VA has been a leader in use of the service-disabled
veteran-owned small business set-aside tool. However, for many
reasons, VA has not recently achieved the Secretary's veteran-
owned small business goal. We believe the flexibility in the
proposed amendment will give contracting officers the
opportunity to ``Choose Veterans First.'' This legislation will
offset the negative impression that some veterans have about
being left out of the Federal procurement process. The VA-
specific set-aside tool will deliver an important message of
support to these veteran-owned small businesses.
----------
Testimony of Charles Ciccolella, Assistant Secretary for Veterans'
Employment and Training, U.S. Department of Labor
the veterans state employment grant improvement act of 2006
Section 2: Requires the Secretary of Labor to ``maintain
guidelines for use by States in establishing the professional
qualifications required * * * for determining the eligibility
for employment, and eligibility for the continued employment''
for Disabled Veteran Outreach Program (DVOP) specialists and
Local Veterans Employment Representatives (LVER).
We agree with the idea that our Nation's veterans deserve
the highest quality of service provided from DVOPs and LVERs
that are highly trained and motivated. Federal guidelines would
assist the states in establishing professional qualifications
for veterans' employment representatives and still allow the
states to retain the overall flexibility to accommodate their
unique personnel rules and guidelines. However, there are
potential problems that may limit the implementation of these
guidelines. They include but are not limited to state personnel
and merit staffing requirements and union bargaining
agreements.
The states will be required to submit their professional
qualifications as a condition of the state grant. We would
offer our assistance to the states to assure compliance with
this provision and further ensure their qualifications meet the
guidelines.
Past experience leads us to believe that guidelines issued
at the federal level will vary widely in their implementation
with each individual state entity. State incentive awards, as
established in the Jobs for Veterans Act (P.L. 107-288), are a
recent example of the difficulties inherent in enforcing
federally-mandated guidelines within a disparate and
decentralized system. Key proponents of the legislative mandate
in 2002 assumed that this provision would be embraced by the
states and implemented with relative ease. In practice,
implementation has proven very difficult. States were forced to
contend with legislative, regulatory, policy or union
agreements that prohibited or limited the types of incentives
that could be provided, thus placing them at odds with federal
and state mandates.
A second expected consequence is likely to be an increased
workload burden on state staff. Most state personnel systems
have similar qualification standards for both DVOP/LVER and
comparable positions. Our concern is that federal mandates that
add qualifications for DVOP/LVERs might result in higher
salaries that cannot be absorbed in the existing budget
structure, leading to fewer positions. While the staff hired
may well be higher quality with more experience, fewer veterans
may receive services. It is our opinion that federally mandated
qualifications established outside of the grant-negotiation
process, while potentially leading to better-qualified DVOP/
LVERs, will decrease the staff to veteran ratio nationwide.
Section 3: This section defines DVOP/LVER part-time work
provision as meaning, ``not less than a half-time basis.'' The
Jobs for Veterans Act provided valuable flexibility as it
allowed DVOPs and LVERs to be employed part-time, but it did
not define part-time. To reduce uncertainty by the States about
the definition, DOL's current grant language defines part-time
as half-time. In spite of our guidance, there remains confusion
in some states over what ``half-time'' means, which makes it
more difficult to monitor state compliance with the grant
provisions. Our concern is that the language in the draft bill
would add to the States' confusion. Consequently, DOL
recommends that this provision be changed to state that part-
time means ``half-time,'' which DOL believes provides adequate
flexibility to the States.
Section 4: This section will require the states to
establish a ``local performance information system'' within
three years following enactment. The states have undergone
several reporting system changes in recent years. On July 1,
2005, states again were required to adapt their reporting to
the set of common outcome measures used by other training and
employment programs in DOL, as well as other agencies. To
improve the accuracy and reduce the costs associated with
collecting the new measures, DOL is formulating a new reporting
system. While DOL agrees with the intent of the provision, to
improve services at the local level and aid in the
determination of resource allocation, we request that the
Committee tie the timeline to the roll-out of the new reporting
system rather than to a legislative timeline. In so doing, DOL
will keep the Committee apprised of ongoing progress. In the
interim, we are exploring ways for states to provide the
requested information within their existing reporting systems.
Section 5: Establishes ``State Licensing and Certification
Programs for Veterans.'' We believe this provision would have
additional budgetary implications and may also have other
unanticipated consequences since certification, credentialing,
and licensing go well beyond a single state's jurisdiction.
Moreover, not all military training and experiences need formal
licensing or certification for veterans to find civilian jobs.
The Veterans Certification and Licensure Act of 2006, that we
comment on below, establishes the Veterans Advisory Committee
on Certification, Credentialing, and Licensing. If established,
such an advisory committee could review this issue and make
recommendations on the best approach to addressing this at the
state and sub-state levels.
Section 6: This section requires that newly hired DVOPs and
LVERs be trained at the National Veterans Training Institute
(NVTI) within three years following the date of their hiring,
and extends training requirements to additional existing
employees. Currently, NVTI provides such training, funded by
DOL, to all DVOPs and LVERS. NVTI was originally established to
provide consistent training for these staff. However, not all
staff have been able to attend.
This section has additional budgetary implications that we
are currently reviewing. We suggest amending this language to
allow NVTI to provide training at a site located in the state
or through an online distance training arrangement.
Section 7: This section establishes a ``Demonstration
Project on Contracting for Placement of Veterans in High Un-
Employment Areas.'' This demonstration has additional budgetary
implications.
We believe such legislation is unnecessary. One of the
underlying principles of the Jobs for Veterans Act was for
states to have the flexibility to determine where best to
deploy their DVOPs and LVERs. We believe enough flexibility
exists for states to focus on their high unemployment areas and
areas in greatest need.
The draft also discusses ``a locality where the
unemployment rate for veterans exceeds the national average
unemployment rate.'' Veteran's unemployment data are not
available for specific localities.
Section 8: This section modifies the incentive awards that
were established in the Jobs for Veterans Act. The Department
supports this measure as written with the exception that the
Assistant Secretary makes the final decision on the incentive
awards.
Section 9: Requires DOL to publish regulations implementing
priority of service. We do not believe regulations are needed.
After enactment of the Jobs for Veterans Act, a DOL work group
assessed the impact of establishing such regulations and
determined that policy guidance is the method that could be
adopted most quickly and still have the same impact as a
regulatory approach. Policy guidance was subsequently published
in September 2003. Nineteen DOL programs are subject to the
priority service provisions and these programs change from time
to time. As the regulatory process is time consuming, it would
be difficult to respond quickly to changes in these programs.
With policy guidance, adjustments can be made in a relative
short period of time as opposed to the more time-consuming
process of establishing or changing regulations.
the veterans certification and licensure act of 2006
We would like to bring to the Committee's attention the
existence of the Department of Veterans Affairs (VA)
Professional Certification and License Advisory Committee
(PCLAC). DOL believes that creating the proposed advisory
committee in DOL is duplicative of efforts already underway at
the VA. We recommend that just one committee address the issue
of certification and licensure for veterans.
Congressional Budget Office Cost Estimate
The following letter was received from the Congressional
Budget Office concerning the cost of the reported bill:
U.S. Congress,
Congressional Budget Office,
Washington, DC, July 19, 2006.
Hon. Steve Buyer,
Chairman, Committee on Veterans' Affairs,
House of Representatives, Washington, DC.
Dear Mr. Chairman: As you requested, the Congressional
Budget Office has prepared the enclosed cost estimate for H.R.
3082, the Veterans Small Business and Memorial Affairs Act of
2006.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contact is Dwayne M.
Wright.
Sincerely,
Donald B. Marron,
Acting Director.
Enclosure.
H.R. 3082--Veterans Small Business and Memorial Affairs Act of 2006
Summary: H.R. 3082 would make changes to several programs
for veterans, primarily for veterans' employment and training
benefits and veterans' burial benefits. CBO estimates that
implementing this bill would cost $1 million in 2007 and $22
million over the 2007-2011 period, assuming appropriation of
the necessary amounts. In addition, CBO estimates that enacting
this legislation would increase direct spending for veterans
programs by less than $500,000 in 2007 and by $2 million over
the 2007-2016 period.
H.R. 3082 contains no intergovernmental or private-sector
mandates as defined in the Unfunded Mandates Reform Act (UMRA)
and would impose no costs on state, local, or tribal
governments.
Estimated cost to the Federal Government: The estimated
budgetary impact of H.R. 3082 is summarized in the following
table. The costs of this legislation fall within budget
function 700 (veterans benefits and services).
TABLE 1.--ESTIMATED BUDGETARY IMPACT OF H.R. 3082
----------------------------------------------------------------------------------------------------------------
By fiscal year, in millions of dollars--
-------------------------------------------------
2007 2008 2009 2010 2011
----------------------------------------------------------------------------------------------------------------
CHANGES IN SPENDING SUBJECT TO APPROPRIATION
Estimated authorization level................................. 4 11 4 3 3
Estimated outlays............................................. 1 6 8 4 3
CHANGES IN DIRECT SPENDING
Estimated budget authority.................................... * * * * *
Estimated outlays............................................. * * * * *
----------------------------------------------------------------------------------------------------------------
Note: * = less than $500,000.
Basis of estimate
For this estimate, CBO assumes that the bill will be
enacted near the start of fiscal year 2007 and that the
necessary amounts will be appropriated for each year.
Spending subject to appropriation
H.R. 3082 contains provisions that would affect several
programs for veterans. CBO estimates that implementing this
bill would cost $1 million in 2007 and almost $22 million over
the 2007-2011 period, assuring appropriation of the necessary
amounts (see Table 2).
Veterans' Employment and Training. Title III would
establish two demonstration projects for veterans' employment
and training. Under section 306, which would be authorized at
$3 million annually for fiscal years 2007 through 2011, a
private contractor would be used for job placement services for
disabled veterans. Section 309, which would be authorized at $1
million for each of fiscal years 2007 through 2009, would focus
on providing credentials in high growth or high demand
occupations to veterans. Assuming appropriation of the
authorized amounts for the demonstration projects, CBO
estimates that those provisions would cost $12 million over the
2007-2011 period.
TABLE 2.--CHANGES IN SPENDING SUBJECT TO APPROPRIATION UNDER H.R. 3082
----------------------------------------------------------------------------------------------------------------
By fiscal year, in millions of dollars--
-------------------------------------------------
2007 2008 2009 2010 2011
----------------------------------------------------------------------------------------------------------------
Veterans' employment and training:
Authorization level....................................... 4 4 4 3 3
Estimated outlays......................................... 1 3 4 4 3
Cemetery grants to tribal organizations:
Estimated authorization level............................. 0 7 0 0 0
Estimated outlays......................................... 0 3 4 0 0
Total changes in spending subject to appropriation under H.R.
3082:
Estimated authorization level............................. 4 11 4 3 3
Estimated outlays......................................... 1 6 8 4 3
----------------------------------------------------------------------------------------------------------------
In addition, Title III would require the Comptroller
General to submit a report on the project dealing with private
contracting of job placement services. CBO estimates that
report would cost less than $500,000.
Cemetery Grants to Tribal Organizations. Section 201 would
allow the Department of Veterans Affairs (VA) to provide grants
to tribal organizations to establish, expand, or improve
veterans' cemeteries on trust lands owned by the tribal
organizations. Under current law, VA can only provide grant
money to States for the purposes of establishing, expanding, or
improving a veterans' cemetery. VA reports that state cemetery
grants range from $4 million to $7 million, depending on the
size of the project, and that the average time to establish a
cemetery from design to opening is 24 months. CBO expects that
one such request for a cemetery would be made over the 2007-
2011 period, and estimates that implementing section 201 would
cost $7 million over that period, subject to appropriation of
the necessary amounts.
Small Business Preferences. Section 101 would require VA to
establish certain annual goals for contracting with small
businesses owned and controlled by veterans, with preference
going to those businesses which are owned by veterans with a
service-connected disability. The bill also would allow VA to
use noncompetitive procedures for awarding contracts to ensure
that such annual goals are met.
Section 101 also would require VA to maintain a database of
small businesses that are owned and controlled by veterans and
to verify the businesses' veteran-owned status. In addition, VA
would be required to verify the disability status of those
veterans who are listed as having service-connected
disabilities. According to VA, it already maintains a database
of small businesses owned and controlled by veterans. VA plans
to obtain the verifications required under this section by
requiring veterans who wish to be included on the list to
submit affidavits of both their service-connected status as
well as their veteran-owned status. CBO estimates that this
provision would have an insignificant effect on federal
spending.
Direct spending
H.R. 3082 contains provisions that would increase direct
spending for veterans burial and readjustment benefits
programs. CBO estimates that enacting this bill would increase
direct spending for veterans programs by less than $500,000 in
2007, by $1 million over the 2007-2011 period, and by $2
million over the 2007-2016 period.
Grave Markers. Section 202 would allow VA to provide a
marker or headstone to be placed on a marked grave or other
appropriate location in a private cemetery to commemorate a
veteran's military service for those veterans who were buried
after November 11, 1990. Under current law, veterans buried in
a private cemetery are eligible for a second marker or
headstone only if they were buried after September 11, 2001.
Section 202 also would indefinitely extend the period
during which a marker or headstone could be requested. The
authority for VA to provide government headstones or markers to
veterans buried in private cemeteries currently expires on
December 31, 2006.
Based on VA projections regarding veterans' death rates and
the number of veterans who will be buried in private
cemeteries, CBO estimates that about 20,000 requests for
headstones or markers would be made over the 2007-2016 period.
The estimate also reflects information from a VA study that
showed that only 27 percent of private cemeteries allow second
markers and that less than 5 percent of those eligible would
participate in this program. According to VA, a marker or
headstone costs about $92 on average. CBO estimates that this
provision would result in an increase in spending for burial
benefits of $1 million over the 2007-2011 period and $2 million
over the 2007-2016 period.
Other provisions. The following provisions would have an
insignificant impact on direct spending:
<bullet> Section 203 would provide a VA marker or
headstone to memorialize deceased, dependent children
of veterans whose remains are unavailable for burial.
Veterans and their spouses whose remains are
unavailable for burial are eligible for memorialization
with a VA marker or headstone under current law. CBO
estimates that under this section about 30 requests
would be made over the 10-year period. With an average
cost of about $92 for each marker, CBO estimates that
direct spending for burial benefits would increase by
less than $500,000 over the 2007-2016 period.
<bullet> Under current law, the VA can compensate
certain individuals for specific work-study programs
associated with the department, although the
authorization for several of the specified programs to
hire work-study students would expire in December of
2006. Section 402 would extend the authorization for
those expiring programs for another six months, through
June 2007. Based on information from VA regarding the
numbers of participants in the expiring programs, CBO
estimates that this provision would increase direct
spending by less than $500,000 in 2007.
<bullet> Section 404 would extend the period of
eligibility for survivors' and dependents' education
benefits for those dependents who are members of the
National Guard and who are involuntarily ordered to
full-time duty under section 502(f) of title 32 of the
U.S. Code. (This expanded eligibility would be
retroactive to September 11, 2001.) Based on
information from VA concerning the number of dependents
using education benefits who have been called to active
duty with the National Guard, CBO estimates that this
provision would increase direct spending by less than
$500,000 over the 2007-2016 period.
Intergovernmental and private-sector impact: H.R. 3082
contains no intergovernmental or private-sector mandates, as
defined in UMRA, and would impose no costs on state, local, or
tribal governments. The bill would add several new requirements
for states participating in an employment program for veterans
and would make tribal governments eligible for a current
program to establish, expand, or improve veteran cemeteries.
Any costs to those governments would be incurred as a condition
of participating in a voluntary federal program.
Previous CBO estimate: On July 19, 2006, CBO transmitted a
cost estimate for S. 2694, the Veterans Small Business and
Memorial Affairs Act of 2006, as ordered reported by the Senate
Committee on Veterans Affairs on June 22, 2006. Sections 201
and 203 of S. 2694 are similar to sections 201 and 202 of H.R.
3038, and the estimated costs are identical.
Estimate prepared by: Federal costs: Burial Benefits:
Dwayne M. Wright; Readjustment Benefits: Mike Waters; Veterans'
Employment and Training: Christina Hawley Anthony.
Impact on State, local, and tribal governments: Melissa
Merrell; Impact on the private sector: Allison Percy.
Estimate approved by: Peter H. Fontaine, Deputy Assistant
Director for Budget Analysis.
Statement of Federal Mandates
The preceding Congressional Budget Office (CBO) cost
estimate states that H.R. 3082, as amended, does not contain
any intergovernmental and private-sector mandates as defined in
the Unfunded Mandates Reform Act (UMRA), Public Law 104-4.
Statement of Constitutional Authority
Pursuant to Article I, section 8 of the United States
Constitution, the reported bill is authorized by Congress'
power to ``provide for the common Defense and general Welfare
of the United States.''
Changes in Existing Law Made by the Bill, as Reported
In compliance with clause 3(e) of rule XIII of the Rules of
the House of Representatives, changes in existing law made by
the bill, as reported, are shown as follows (existing law
proposed to be omitted is enclosed in black brackets, new
matter is printed in italic, existing law in which no change is
proposed is shown in roman):
TITLE 38, UNITED STATES CODE
* * * * * * *
PART II--GENERAL BENEFITS
* * * * * * *
CHAPTER 23--BURIAL BENEFITS
* * * * * * *
Sec. 2306. Headstones, markers, and burial receptacles
(a) * * *
(b)(1) * * *
(2) For purposes of paragraph (1), an eligible individual is
any of the following:
(A) * * *
* * * * * * *
(C) An eligible dependent child of a veteran.
* * * * * * *
(4) For purposes of this subsection:
(A) * * *
* * * * * * *
(C) For purposes of this section, the term ``eligible
dependent child'' means a child--
(i) who is under 21 years of age, or under 23
years of age if pursuing a course of
instruction at an approved educational
institution; or
(ii) who is unmarried and became permanently
physically or mentally disabled and incapable
of self-support before reaching 21 years of
age, or before reaching 23 years of age if
pursuing a course of instruction at an approved
educational institution.
* * * * * * *
(d)(1) The Secretary shall furnish, when requested, an
appropriate Government headstone or marker at the expense of
the United States for the grave of an individual described in
paragraph (2) or (5) of subsection (a) who is buried in a
private cemetery, notwithstanding that the grave is marked by a
headstone or marker furnished at private expense. Such a
headstone or marker may be furnished only if the individual
making the request for the Government headstone or marker
certifies to the Secretary that the headstone or marker will be
placed on the grave for which the headstone or marker is
requested. If placing the Government headstone or marker on the
grave for which it is requested is impossible or impracticable,
a headstone or marker may be furnished if the individual making
the request for the headstone or marker certifies to the
Secretary that the headstone or marker will be placed within
the grounds of the cemetery in which the grave for which the
headstone or marker is requested and as close as possible or
practicable to that grave.
(2) Any headstone or marker furnished under this subsection
shall be delivered by the Secretary directly to the cemetery
where the grave is located or to a receiving agent of that
cemetery.
[(3) The authority to furnish a marker under this subsection
expires on December 31, 2006.
[(4) Not later than February 1, 2006, the Secretary shall
submit to the Committees on Veterans' Affairs of the Senate and
House of Representatives a report on the use of the authority
under this subsection. The report shall include the following:
[(A) The rate of use of the benefit under this
subsection, shown by fiscal year.
[(B) An assessment as to the extent to which markers
furnished under this subsection are being delivered to
cemeteries and placed on grave sites consistent with
the provisions of this subsection.
[(C) The Secretary's recommendation for extension or
repeal of the expiration date specified in paragraph
(3).]
(3) The headstone or marker furnished under this subsection
shall be the headstone or marker selected by the individual
making the request for the headstone or marker from among all
the headstones and markers made available by the Government and
certified as acceptable for placement.
* * * * * * *
(f)(1) When the Secretary has furnished a headstone or marker
under subsection (a) for the unmarked grave of an individual,
the Secretary shall, if feasible, add a memorial inscription to
that headstone or marker rather than furnishing a separate
headstone or marker under that subsection for the surviving
spouse or eligible dependent child of such individual.
(2) When the Secretary has furnished a memorial headstone or
marker under subsection (b) for purposes of commemorating a
veteran or an individual who died in the active military,
naval, or air service, the Secretary shall, if feasible, add a
memorial inscription to that headstone or marker rather than
furnishing a separate memorial headstone or marker under that
subsection for the surviving spouse or eligible dependent child
of such individual.
(g)(1) * * *
* * * * * * *
(3) A headstone or marker may not be furnished under
subsection (d) for the grave of a person described in section
2411(b) of this title.
* * * * * * *
CHAPTER 24--NATIONAL CEMETERIES AND MEMORIALS
* * * * * * *
Sec. 2408. Aid to States for establishment, expansion, and improvement
of veterans' cemeteries
(a) * * *
* * * * * * *
(f)(1) The Secretary may make grants under this subsection to
any tribal organization to assist the tribal organization in
establishing, expanding, or improving veterans' cemeteries on
trust land owned by, or held in trust for, the tribal
organization.
(2) Grants under this subsection shall be made in the same
manner, and under the same conditions, as grants to States are
made under the preceding provisions of this section.
(3) In this subsection:
(A) The term ``tribal organization'' has the meaning
given that term in section 3765(4) of this title.
(B) The term ``trust land'' has the meaning given
that term in section 3765(1) of this title.
* * * * * * *
PART III--READJUSTMENT AND RELATED BENEFITS
* * * * * * *
CHAPTER 34--VETERANS' EDUCATIONAL ASSISTANCE
* * * * * * *
SUBCHAPTER IV--PAYMENTS TO ELIGIBLE VETERANS; VETERAN-STUDENT SERVICES
* * * * * * *
Sec. 3485. Work-study allowance
(a)(1) * * *
* * * * * * *
(4) For the purposes of this section, the term ``qualifying
work-study activity'' means any of the following:
(A) The outreach services program under chapter 63 of
this title as carried out under the supervision of a
Department employee or, during the period preceding
[December 27, 2006] June 30, 2007, outreach services to
servicemembers and veterans furnished by employees of a
State approving agency.
* * * * * * *
(C) The provision of hospital and domiciliary care
and medical treatment under chapter 17 of this title,
including, during the period preceding [December 27,
2006] June 30, 2007, the provision of such care to
veterans in a State home for which payment is made
under section 1741 of this title.
* * * * * * *
(E) In the case of an individual who is receiving
educational assistance under chapter 1606 or 1607 of
title 10, an activity relating to the administration of
that chapter at Department of Defense, Coast Guard, or
National Guard facilities.
(F) During the period preceding [December 27, 2006]
June 30, 2007, an activity relating to the
administration of a national cemetery or a State
veterans' cemetery.
* * * * * * *
(b) Notwithstanding any other provision of law, the Secretary
shall, subject to the provisions of subsection (e) of this
section, utilize, in connection with the activities specified
in subsection (a)(1) of this section, the service of
individuals who are pursuing programs of rehabilitation,
education, or training under chapter 30, 31, 32, or 34 of this
title or [chapter 106] chapter 1606 or 1607 of title 10, at a
rate equal to at least three-quarters of that required of a
full-time student. In carrying out this section, the Secretary,
wherever feasible, shall give priority to veterans with
disabilities rated at 30 percent or more for purposes of
chapter 11 of this title. In the event an individual ceases to
be at least a three-quarter-time student before completing such
agreement, the individual may, with the approval of the
Secretary, be permitted to complete such agreement.
* * * * * * *
(e)(1) Subject to paragraph (2) of this subsection, the
Secretary may, notwithstanding any other provision of law,
enter into an agreement with an individual under this section,
or a modification of such an agreement, whereby the individual
agrees to perform [services of the kind described in clauses
(A) through (E) of subsection (a)(1) of this section] a
qualifying work-study activity described in subsection (a)(4)
and agrees that the Secretary shall, in lieu of paying the
work-study allowance payable for such services, as provided in
subsection (a) of this section, deduct the amount of the
allowance from the amount which the individual has been
determined to be indebted to the United States by virtue of
such individual's participation in a benefits program under
this chapter, chapter 30, 31, 32, 35, or 36 of this title, or
[chapter 106] chapter 1606 or 1607 of title 10 (other than an
indebtedness arising from a refund penalty imposed under
section 2135 of such title).
* * * * * * *
CHAPTER 35--SURVIVORS' AND DEPENDENTS' EDUCATIONAL ASSISTANCE
* * * * * * *
SUBCHAPTER II--ELIGIBILITY AND ENTITLEMENT
* * * * * * *
Sec. 3511. Duration of educational assistance
(a)(1) * * *
* * * * * * *
(2)(A) * * *
(B) The payment of the educational assistance allowance
referred to in subparagraph (A) of this paragraph is the
payment of such an allowance to an individual for pursuit of a
course or courses under this chapter if the Secretary finds
that the individual--
(i) had to discontinue such course pursuit as a
result of being ordered to serve on active duty under
section 688, 12301(a), 12301(d), 12301(g), 12302, or
12304 of title 10 or of being involuntarily ordered to
full-time National Guard duty under section 502(f) of
title 32; and
* * * * * * *
CHAPTER 36--ADMINISTRATION OF EDUCATIONAL BENEFITS
* * * * * * *
SUBCHAPTER I--STATE APPROVING AGENCIES
* * * * * * *
Sec. 3676. Approval of nonaccredited courses
(a) * * *
* * * * * * *
(c) The appropriate State approving agency may approve the
application of such institution when the institution and its
non-accredited courses are found upon investigation to have met
the following criteria:
(1) * * *
* * * * * * *
(13) The institution has and maintains a policy for
the refund of the unused portion of tuition, fees, and
other charges in the event the eligible person fails to
enter the course or withdraws or is discontinued
therefrom at any time [prior to completion and such
policy must provide that the amount charged to the
eligible person for tuition, fees, and other charges
for a portion of the course shall not exceed the
approximate pro rata portion of the total charges for
tuition, fees, and other charges that the length of the
completed portion of the course bears to its total
length.] before completion and--
(A) in the case of an institution other than
(i) a Federal, State, or local Government
institution or (ii) an institution described in
subparagraph (B), such policy provides that the
amount charged to the eligible person for
tuition, fees, and other charges for a portion
of the course shall not exceed the approximate
pro rata portion of the total charges for
tuition, fees, and other charges that the
length of the completed portion of the course
bears to its total length; and
(B) in the case of an institution that is a
nonaccredited public educational institution,
the institution has and maintains a refund
policy regarding the unused portion of tuition,
fees, and other charges that is substantially
the same as the refund policy followed by
accredited public educational institutions
located within the same State as such
institution.
* * * * * * *
CHAPTER 41--JOB COUNSELING, TRAINING, AND PLACEMENT SERVICE FOR
VETERANS
Sec.
4100. Findings.
* * * * * * *
4114. Demonstration project on credentialing and licensure of veterans.
* * * * * * *
Sec. 4102A. Assistant Secretary of Labor for Veterans' Employment and
Training; program functions; Regional
Administrators
(a) * * *
* * * * * * *
(c) Conditions for Receipt of Funds.--(1) * * *
(2)(A) A State shall submit to the Secretary an application
for a grant or contract under subsection (b)(5). The
application shall contain the following information:
(i) A plan that describes the manner in which the
State shall furnish employment, training, and placement
services required under this chapter for the program
year, including a description of--
(I) duties assigned by the State to disabled
veterans' outreach program specialists and
local veterans' employment representatives
consistent with the requirements of sections
4103A and 4104 of this title;
(II) the manner in which such specialists and
representatives are integrated in the
employment service delivery systems in the
State; [and]
(III) the program of performance incentive
awards described in section 4112 of this title
in the State for the program year[.];
(IV) the professional qualifications used by
the State for determining the eligibility for
employment, and eligibility for continued
employment, of State employees who are
designated as disabled veterans' outreach
program specialists and local veterans'
employment representatives under this chapter;
and
(V) the training required or provided by the
State for State employees who are designated as
disabled veterans' outreach program specialists
and local veterans' employment representatives
under this chapter.
(ii) The veteran population to be served.
(iii) For each employee of the State who is
designated as disabled veterans' outreach program
specialist or a local veterans' employment
representative under this chapter--
(I) the date on which the employee is so
designated; and
(II) whether the employee has satisfactorily
completed training provided by the National
Veterans' Employment and Training Services
Institute.
[(iii)] (iv) Such additional information as the
Secretary may require to make a determination with
respect to awarding a grant or contract to the State.
(B)(i) * * *
[(ii) The Secretary shall phase in over the three fiscal-year
period that begins on October 1, 2003, the manner in which
amounts are made available to States under subsection (b)(5)
and this subsection, as amended by the Jobs for Veterans Act.]
[(iii)] (ii) In carrying out this paragraph, the Secretary
may establish minimum funding levels and hold-harmless criteria
for States.
* * * * * * *
(6) Each State shall coordinate employment, training, and
placement services furnished to veterans and eligible persons
under this chapter with such services furnished with respect to
such veterans and persons under the Workforce Investment Act of
1998 (29 U.S.C. 2801 et seq.) and the Wagner-Peyser Act (29
U.S.C. 49 et seq.).
* * * * * * *
(8) As a condition of a grant or contract under which funds
are made available to a State in order to carry out section
4103A or 4104 of this title, the Secretary shall require the
State to provide a licensing and certification program under
which a veteran may receive credit toward a license or
certification based on training or experience the veteran
acquired while serving in the Armed Forces.
(9)(A) As a condition of a grant or contract under which
funds are made available to a State in order to carry out
section 4103A or 4104 of this title, the Secretary shall
require the State to require each employee hired by the State
who is designated as disabled veterans' outreach program
specialist or a local veterans' employment representative under
this chapter to satisfactorily complete training provided by
the National Veterans' Employment and Training Services
Institute during the three-year period that begins on the date
on which the employee is so designated.
(B) For any employee described in subparagraph (A) who does
not complete such training during such period, the Secretary
may reduce by an appropriate amount the amount made available
to the State employing that employee.
* * * * * * *
(f) [Establishment of Performance Standards and Outcomes
Measures.--] Performance Standards and Outcomes Measures._(1)
The Assistant Secretary of Labor for Veterans' Employment and
Training shall [establish and] implement a comprehensive
performance accountability system to measure the performance of
employment service delivery systems, including disabled
veterans' outreach program specialists and local veterans'
employment representatives providing employment, training, and
placement services under this chapter in a State to provide
accountability of that State to the Secretary for purposes of
subsection (c).
* * * * * * *
(h) Demonstration Project on Contracting for Placement of
Veterans in High-Unemployment Areas.--(1) From unobligated
funds made available for a fiscal year to carry out sections
4103A and 4104 of this title, the Secretary of Labor, acting
through the Assistant Secretary of Labor for Veterans'
Employment and Training, may enter into a contract with a
nongovernmental entity to carry out job placement services for
veterans during that fiscal year in a locality where the
unemployment rate for veterans exceeds the national average
unemployment rate.
(2) In entering into a contract under paragraph (1), the
Secretary of Labor may use procedures other than competitive
procedures.
(3) In entering into a contract under paragraph (1), the
Secretary of Labor shall give priority to a small business
concern owned and controlled by veterans that is listed in any
small business database maintained by the Secretary of Veterans
Affairs.
(4) The total amount obligated under contracts entered into
under paragraph (1) for any fiscal year may not exceed
$3,000,000.
(5) The authority to enter into a contract under this
subsection shall terminate on the date that is five years after
the date of the enactment of the Veterans Small Business and
Memorial Affairs Act of 2006.
Sec. 4103A. Disabled veterans' outreach program
(a) * * *
* * * * * * *
(c) Part-Time Employees.--A part-time disabled veterans'
outreach program specialist shall perform the functions of a
disabled veterans' outreach program specialist under this
section on a half-time basis.
Sec. 4104. Local veterans' employment representatives
(a) * * *
* * * * * * *
(e) Part-Time Employees.--A part-time local veterans'
employment representative shall perform the functions of a
local veterans' employment representative under this section on
a half-time basis.
* * * * * * *
Sec. 4107. Administrative controls; annual report
(a) * * *
* * * * * * *
(c) Not later than February 1 of each year, the Secretary
shall report to the Committees on Veterans' Affairs of the
Senate and the House of Representatives on the success during
the preceding program year of the Department of Labor and its
affiliated State employment service agencies in carrying out
the provisions of this chapter and programs for the provision
of employment and training services to meet the needs of
eligible veterans and eligible persons. The report shall
include--
(1) * * *
* * * * * * *
(3) the number of veterans, disabled veterans, and
special disabled veterans who requested training from
the public employment service system;
(4) the total number of eligible veterans
participating in each program for the provision of
employment and training services designed to meet the
needs of eligible veterans and eligible persons and the
number of such veterans as a percentage of the total
number of participants in each such program;
(5) for each State, the percentage of persons seeking
employment in the State who are veterans;
(6) for each State, the number of veterans referred
to a small business development center in that State
and the number of veterans referred to the National
Veterans Business Development Corporation established
under section 33 of the Small Business Act (15 U.S.C.
657c);
(7) the total number of such veterans and disabled
veterans who remain employed for at least 90 days in
such jobs;
(8) the number of such veterans and disabled veterans
who remain employed for at least 180 days in such jobs;
(9) the average starting wage or salary paid to such
veterans and disabled veterans and, if applicable, the
average wage or salary paid to such veterans and
disabled veterans as of the 180th day of employment;
[(3)] (10) any determination made by the Secretary
during the preceding fiscal year under section 4106 of
this title or subsection (a)(2) of this section and a
statement of the reasons for such determination;
[(4)] (11) a report on activities carried out during
the preceding program year under section 4212(d) of
this title;
[(5)] (12) a report on the operation during the
preceding program year of programs for the provision of
employment and training services designed to meet the
needs of eligible veterans and eligible persons,
including an evaluation of the effectiveness of such
programs during such program year in meeting the
requirements of section 4102A(b) of this title, the
efficiency with which services were provided through
such programs during such year, and such
recommendations for further legislative action relating
to veterans' employment and training as the Secretary
considers appropriate; and
[(6)] (13) a report on the operation during the
preceding program year of the program of performance
incentive awards for quality employment services under
section 4112 of this title.
* * * * * * *
(d) The Secretary shall maintain guidelines for use by States
in establishing the professional qualifications required under
subclause (IV) of section 4102A(c)(2)(A)(i) of this title for
determining the eligibility for employment, and eligibility for
the continued employment, of State employees who are designated
as disabled veterans' outreach program specialists and local
veterans' employment representatives under this chapter.
* * * * * * *
Sec. 4110. Advisory Committee on Veterans Employment, Training, and
Employer Outreach
(a) * * *
* * * * * * *
(c)(1) The Secretary of Labor shall appoint at least 12, but
no more than 15, individuals to serve as members of the
advisory committee as follows:
(A) [Six] Seven individuals, one each from among
representatives nominated by each of the following
organizations:
(i) * * *
* * * * * * *
(vii) The National Governors Association.
* * * * * * *
Sec. 4112. Performance incentive awards for quality employment,
training, and placement services
(a) Criteria for Performance Incentive Awards.--(1) For
purposes of carrying out a program of performance incentive
awards under section 4102A(c)(2)(A)(i)(III) of this title, the
Secretary, acting through the Assistant Secretary of Labor for
Veterans' Employment and Training, shall establish criteria for
performance incentive awards programs to be administered by
States to--
(A) * * *
(B) recognize eligible employees and employment
service offices for excellence in the provision of such
services or for having made demonstrable improvements
in the provision of such services.
* * * * * * *
(c) [Relationship of Award to Grant Program and Employee
Compensation.--] Administration and Use of Awards._Performance
incentive cash awards under this section--
(1) shall be made from amounts allocated from the
grant or contract amount for a State for a program year
under section 4102A(c)(7) of this title; [and]
(2) [is] in the case of such an award made to an
eligible employee, shall be in addition to the regular
pay of the recipient[.]; and
(3) in the case of such an award made to an
employment service office, may be used by that
employment service office for any purpose.
* * * * * * *
Sec. 4114. Demonstration project on credentialing and licensure of
veterans
(a) Establishment and Purpose of Demonstration Project.--The
Assistant Secretary for Veterans' Employment and Training shall
carry out a demonstration project on credentialing in
accordance with this section for the purpose of facilitating
the seamless transition of members of the Armed Forces from
service on active duty to civilian employment.
(b) Credentialing and Licensure of Veterans.--(1) The
Assistant Secretary shall select not less than ten military
occupational specialties for purposes of the demonstration
project. Each such specialty selected by the Assistant
Secretary shall require a skill or set of skills that is
required for civilian employment in an industry with high
growth or high worker demand.
(2) The Assistant Secretary shall consult with appropriate
Federal, State, and industry officials to identify requirements
for credentials, certifications, and licenses that require a
skill or set of skills required by a military occupational
specialty identified under paragraph (1).
(3) The Assistant Secretary shall analyze the requirements
identified under paragraph (2) to determine which requirements
may be satisfied by the skills, training, or experience
acquired by members of the Armed Forces with the military
occupational specialties selected under paragraph (1).
(c) Elimination of Barriers to Credentialing and Licensure.--
The Assistant Secretary shall cooperate with appropriate
Federal, State, and industry officials to reduce or eliminate
any barriers to providing a credential, certification, or
license to a veteran who acquired any skill, training, or
experience while serving as a member of the Armed Forces with a
military occupational specialty selected under subsection
(b)(1) that satisfies the Federal and State requirements for
the credential, certification, or license.
(d) Task Force.--The Assistant Secretary may establish a task
force of individuals with appropriate expertise to provide
assistance to the Assistant Secretary in carrying out this
section.
(e) Consultation.--In carrying out this section, the
Assistant Secretary shall consult with the Secretary of
Defense, the Secretary of Veterans Affairs, appropriate Federal
and State officials, private-sector employers, labor
organizations, and industry trade associations.
(f) Contract Authority.--For purposes of carrying out any
part of the demonstration project under this section, the
Assistant Secretary may enter into a contract with a public or
private entity with appropriate expertise.
(g) Period of Project.--The Assistant Secretary shall carry
out the demonstration project under this section during the
period beginning on the date that is 60 days after the date of
the enactment of this section and ending on September 30, 2009.
(h) Authorization of Appropriations.--There are authorized to
be appropriated to the Assistant Secretary to carry out this
section $1,000,000 for each of fiscal years 2007 through 2009.
* * * * * * *
PART VI--ACQUISITION AND DISPOSITION OF PROPERTY
* * * * * * *
CHAPTER 81--ACQUISITION AND OPERATION OF HOSPITAL AND DOMICILIARY
FACILITIES; PROCUREMENT AND SUPPLY; ENHANCED-USE LEASES OF REAL
PROPERTY
SUBCHAPTER I--ACQUISITION AND OPERATION OF MEDICAL FACILITIES
Sec.
8101. Definitions.
* * * * * * *
SUBCHAPTER II--PROCUREMENT AND SUPPLY
8121. Revolving supply fund.
* * * * * * *
8127. Small business concerns owned and controlled by veterans;
Department contracting goals and preferences.
8128. Contracting priority for small business concerns owned and
controlled by veterans.
* * * * * * *
SUBCHAPTER II--PROCUREMENT AND SUPPLY
* * * * * * *
Sec. 8127. Small business concerns owned and controlled by veterans;
Department contracting goals and preferences
(a) Contracting Goals.--(1) In order to increase contracting
opportunities for small business concerns owned and controlled
by veterans and small business concerns owned and controlled by
veterans with service-connected disabilities, the Secretary
shall--
(A) establish a goal for each fiscal year for
participation in Department contracts (including
subcontracts) by small business concerns owned and
controlled by veterans who are not veterans with
service-connected disabilities in accordance with
paragraph (2); and
(B) establish a goal for each fiscal year for
participation in Department contracts (including
subcontracts) by small business concerns owned and
controlled by veterans with service-connected
disabilities in accordance with paragraph (3).
(2) The goal for a fiscal year for participation under
paragraph (1)(A) shall be determined by the Secretary.
(3) The goal for a fiscal year for participation under
paragraph (1)(B) shall be not less than the Government-wide
goal for that fiscal year for participation by small business
concerns owned and controlled by veterans with service-
connected disabilities under section 15(g)(1) of the Small
Business Act (15 U.S.C. 644(g)(1)).
(4) The annual performance review of the senior official of
each Administration of the Department and each Assistant
Secretary of the Department with procurement authority shall
include an assessment of whether or not that official or
Assistant Secretary met the contracting goals established
pursuant to this subsection during the year for which the
performance review is conducted with respect to contracts
awarded during that year for which that official or Assistant
Secretary had responsibility. If the official or Assistant
Secretary is found not to have met such contracting goals, the
official or Assistant Secretary shall not receive an award
known as a performance award or an award known as a
presidential rank award for that year.
(5) In the case of a subcontract of a Department contract
that is counted for purposes of meeting a goal established
pursuant to this section, the Secretary shall conduct a review
of the contract and subcontract to verify that the subcontract
was actually awarded to a business concern that may be counted
for purposes of meeting that goal.
(6) The Secretary shall maintain a list based on the reviews
conducted under paragraph (5) that contains the name of the
contractor associated with each contract reviewed under that
paragraph and whether each subcontract awarded by the
contractor that is counted for purposes of meeting a goal
established pursuant to this section was actually awarded to
and performed by a business concern that may be counted for
purposes of meeting that goal. The Secretary shall make such
list publicly available.
(b) Use of Noncompetitive Procedures for Certain Small
Contracts.--For purposes of meeting the goals under subsection
(a), and in accordance with this section, in entering into a
contract with a small business concern owned and controlled by
veterans for an amount less than the simplified acquisition
threshold (as defined in section 4 of the Office of Federal
Procurement Policy Act (41 U.S.C. 403)), a contracting officer
of the Department may use procedures other than competitive
procedures.
(c) Sole Source Contracts for Contracts Above Simplified
Acquisition Threshold.--For purposes of meeting the goals under
subsection (a), and in accordance with this section, a
contracting officer of the Department may award a contract to a
small business concern owned and controlled by veterans using
procedures other than competitive procedures if--
(1) such concern is determined to be a responsible
source with respect to performance of such contract
opportunity;
(2) the anticipated award price of the contract
(including options) will exceed the simplified
acquisition threshold (as defined in section 4 of the
Office of Federal Procurement Policy Act (41 U.S.C.
403)) but will not exceed $5,000,000; and
(3) in the estimation of the contracting officer, the
contract award can be made at a fair and reasonable
price that offers best value to the United States.
(d) Use of Restricted Competition.--Except as provided in
subsections (b) and (c), for purposes of meeting the goals
under subsection (a), and in accordance with this section, a
contracting officer of the Department shall award contracts on
the basis of competition restricted to small business concerns
owned and controlled by veterans if the contracting officer has
a reasonable expectation that two or more small business
concerns owned and controlled by veterans will submit offers
and that the award can be made at a fair and reasonable price
that offers best value to the United States.
(e) Eligibility of Small Business Concerns.--A small business
concern may be awarded a contract under this section only if
the small business concern and the veteran owner of the small
business concern are listed in the database of veteran-owned
businesses maintained by the Secretary under subsection (f).
(f) Database of Veteran-Owned Businesses.--(1) Subject to
paragraphs (2) through (6), the Secretary shall maintain a
database of small business concerns owned and controlled by
veterans and the veteran owners of such business concerns.
(2) To be eligible for inclusion in the database, such a
veteran shall submit to the Secretary such information as the
Secretary may require with respect to the small business
concern or the veteran.
(3) Information maintained in the database shall be submitted
on a voluntary basis by such veterans.
(4) In maintaining the database, the Secretary shall carry
out at least the following two verification functions:
(A) Verification that each small business concern
listed in the database is owned and controlled by
veterans.
(B) In the case of a veteran who indicates a service-
connected disability, verification of the service-
disabled status of such veteran.
(5) The Secretary shall make the database available to all
Federal departments and agencies and notify each such
department and agency of the availability of the database.
(6) If the Secretary determines that the public dissemination
of certain types of information maintained in the database is
inappropriate, the Secretary shall take such steps as are
necessary to maintain such types of information in a secure and
confidential manner.
(g) Enforcement Penalties for Misrepresentation.--Any small
business concern that is determined by the Secretary to have
misrepresented the status of that concern as a small business
concern owned and controlled by veterans or as a small business
concern owned and controlled by service-disabled veterans for
purposes of this subsection shall be debarred from contracting
with the Department for a period of five years.
(h) Treatment of Businesses After Death of Veteran-Owner.--
(1) If the death of a veteran causes a small business concern
to be less than 51 percent owned by one or more veterans, the
surviving spouse of such veteran who acquires ownership rights
in such small business concern shall, for the period described
in paragraph (2), be treated as if the surviving spouse were
that veteran for the purpose of maintaining the status of the
small business concern as a small business concern owned and
controlled by veterans.
(2) The period referred to in paragraph (1) is the period
beginning on the date on which the veteran dies and ending on
the earliest of the following dates:
(A) The date on which the surviving spouse remarries.
(B) The date on which the surviving spouse
relinquishes an ownership interest in the small
business concern.
(C) The date that is ten years after the date of the
veteran's death.
(3) The death of a veteran-owner of a small business concern
or a surviving spouse of such a veteran-owner who acquires
ownership rights in such concern shall not be cause for
termination of a contract awarded under this section that is in
effect at the time of death of such owner or surviving spouse.
(i) Change in Ownership or Control.--(1) Except as provided
in subsection (h), if a small business concern that is awarded
a contract under this section undergoes a change in management
or control during the period for which the contract is in
effect such that it is no longer a small business concern owned
and controlled by veterans, the Secretary shall end the
contract on the date on which the performance of the term of
the contract is complete.
(2) Such a contract that contains an option or options to
extend the contract may be extended for a total of not more
than 1 year pursuant to any such option.
(j) Priority for Contracting Preferences.--Preferences for
awarding contracts to small business concerns shall be applied
in the following order of priority:
(1) Contracts awarded pursuant to subsection (b),
(c), or (d) to small business concerns owned and
controlled by veterans with service-connected
disabilities.
(2) Contracts awarded pursuant to subsection (b),
(c), or (d) to small business concerns owned and
controlled by veterans that are not covered by
subparagraph (A).
(3) Contracts awarded pursuant to--
(A) section 8(a) of the Small Business Act
(15 U.S.C. 637(a)); or
(B) section 31 of such Act (15 U.S.C. 657a).
(4) Contracts awarded pursuant to any other small business
contracting preference.
(k) Quarterly Reports.--Not later than 60 days after the last
day of a fiscal quarter, the Secretary shall submit to Congress
a report on small business contracting during that fiscal
quarter, which shall include the following:
(1) The percentage of the total amount of all
contracts awarded by the Department during that fiscal
quarter that were awarded to small business concerns
owned and controlled by veterans.
(2) The percentage of the total amount of all such
contracts awarded to small business concerns owned and
controlled by veterans with service-connected
disabilities.
(3) The percentage of the total amount of all
contracts awarded by each Administration of the
Department during that fiscal quarter that were awarded
to small business concerns owned and controlled by
veterans.
(4) The percentage of the total amount of all
contracts awarded by each such Administration during
that fiscal quarter that were awarded to small business
concerns owned and controlled by veterans.
(l) Definitions.--In this section:
(1) The term ``small business concern'' has the
meaning given that term under section 3 of the Small
Business Act (15 U.S.C. 632).
(2) The term ``small business concern owned and
controlled by veterans'' means a small business
concern--
(A)(i) not less than 51 percent of which is
owned by one or more veterans or, in the case
of a publicly owned business, not less than 51
percent of the stock of which is owned by one
or more veterans; and
(ii) the management and daily business
operations of which are controlled by one or
more veterans; or
(B) not less than 51 percent of which is
owned by one or more veterans with service-
connected disabilities that are permanent and
total who are unable to manage the daily
business operations of such concern or, in the
case of a publicly owned business, not less
than 51 percent of the stock of which is owned
by one or more such veterans.
Sec. 8128. Contracting priority for small business concerns owned and
controlled by veterans
(a) In General.--In procuring goods and services pursuant to
a contracting preference under this title or any other
provision of law, the Secretary shall give priority to a small
business concern owned and controlled by veterans, if such
business concern also meets the requirements of that
contracting preference.
(b) Definition.--The term ``small business concern owned and
controlled by veterans'' means a small business concern that is
on the list maintained by the Secretary under section 8127(f)
of this title.
* * * * * * *
----------
SECTION 502 OF THE VETERANS EDUCATION AND BENEFITS EXPANSION ACT OF
2001
SEC. 502. GOVERNMENT MARKERS FOR MARKED GRAVES AT PRIVATE CEMETERIES.
(a) * * *
* * * * * * *
(d) Effective Date.--The amendments made by subsections (a)
and (b) shall apply with respect to markers for the graves of
individuals dying on or after [September 11, 2001] November 1,
1990.
<all>