1.This Act may be cited as the
Veterans Self-Employment Act of
2011
.
2.Availability of
education benefits for payment of training costs associated with the purchase
of certain franchise enterprises
(a)Establishment of
five-Year pilot projectThe
Secretary of Veterans Affairs shall conduct a five-year pilot project to test
the feasibility and advisability of the use of educational assistance under the
programs of the Department of Veterans Affairs under the following provisions
of law to pay for training costs associated with the purchase of a franchise
enterprise:
(1)Chapter 30 of
title 38, United States Code.
(2)Chapter 32 of such
title.
(3)Chapter 35 of such
title.
(4)Chapter 1606 of
title 10, United States Code.
(5)Chapter 1607 of
title 10, United States Code.
(b)
(1)Subject to paragraph
(3), the amount of educational assistance payable under the applicable
provision of law referred to in subsection (a) to an individual entitled to
such assistance under such provision of law for the payment of training costs
associated with the purchase of a franchise enterprise is equal to the lesser
of ½ of the franchise fee or 1/3 of
the remaining amount of educational assistance to which the individual is
entitled under such applicable provision of law, such remaining amount
determined as of the date of approval by the Secretary of the individual’s
application for such assistance for payment of such training costs.
(2)Amounts payable to an individual under paragraph (1)
shall be made in a lump sum.
(c)
(1)Requirement for
the provision of trainingPayment may not be made for training costs
associated with the purchase of a franchise enterprise under the pilot project
under this section unless—
(A)appropriate
training is required and provided with respect to the purchase and operation of
the franchise operation; and
(B)such training, and
the entity or organization offering the training, are approved by the Secretary
in accordance with this subsection.
(2)General
requirements for approvalThe requirements of approval for such
training and organizations or entities offering such training shall be in
accordance with the applicable provisions of chapters 30, 32, 35, and 36 of
title 38, United States Code, and chapters 1606 and 1607 of title 10, United
States Code, and with regulations prescribed by the Secretary to carry out this
section, and shall include the following:
(A)The organization or entity certifies to the
Secretary that the training offered by the organization or entity is generally
accepted, in accordance with relevant government, business, or industry
standards, employment policies, or hiring practices, as attesting to a level of
knowledge or skill required to own and successfully operate a franchise
operation.
(B)The organization or entity is licensed,
chartered, or incorporated in a State and has offered such training for a
minimum of two years before the date on which the organization or entity first
submits to the Secretary an application for approval under this section.
(C)The organization
or entity maintains appropriate records with respect to all trainees who pursue
such training for a period prescribed by the Secretary, but in no case for a
period of less than three years.
(D)The organization or entity promptly issues
progress reports on the training and notice of the successful completion of
such training to the trainee.
(E)The organization or entity has in place a
process to review complaints submitted against the organization or entity with
respect to the training or the process for acquiring a franchise
enterprise.
(F)The organization or entity furnishes to the
Secretary the following information:
(i)A description of the training offered by
the organization or entity, including the purpose of the training, the
vocational, professional, governmental, and other entities that recognize the
training, and the license or certificate (if any) issued upon successful
completion of the training.
(ii)The requirements to undertake the training,
including the amount of the fee charged for the training and any prerequisite
education, training, skills, or other certification.
(G)Upon request of the Secretary, the
organization or entity furnishes such information to the Secretary that the
Secretary determines necessary to perform an assessment of—
(i)the training conducted by the organization
or entity; and
(ii)the applicability of the training over such
periods of time as the Secretary determines appropriate.
(3)Consideration of
past performanceIn
determining whether to make payment under the pilot project to an organization
or entity offering training, the Secretary shall consider the rate of success
of the organization or entity in the training of individuals to own and
successfully operate a franchise enterprise.
(4)Authority for
the use of state approving agencies for approval of training and organizations
or entitiesTo the extent that the Secretary determines
practicable, State approving agencies may, in lieu of the Secretary, approve
training, and organizations and entities offering such training, under this
section.
(d)
(1)The number of months of entitlement charged an individual
under chapter 30 of title 38, United States Code, for educational assistance
for the payment of training costs under subsection (b)(1) is equal to the
number (including any fraction) determined by dividing the total amount of
educational assistance paid such individual for such training costs by the
full-time monthly institutional rate of educational assistance which, except
for subsection (b)(1), such individual would otherwise be paid under such
chapter.
(2)The number of months of
entitlement charged an individual under chapter 32 of title 38, United States
Code, for educational assistance for the payment of training costs under
subsection (b)(1) is equal to the number (including any fraction) determined by
dividing the total amount of educational assistance paid such individual for
such training costs by the full-time monthly institutional rate of educational
assistance which, except for subsection (b)(1), such individual would otherwise
be paid under such chapter.
(3)The number of months of
entitlement charged an individual under chapter 35 of title 38, United States
Code, for educational assistance for the payment of training costs under
subsection (b)(1) is equal to the number (including any fraction) determined by
dividing the total amount of educational assistance paid such individual for
such training costs by the full-time monthly institutional rate of educational
assistance which, except for subsection (b)(1), such individual would otherwise
be paid under such chapter.
(4)The number of months of
entitlement charged an individual under chapter 1606 of title 10, United States
Code, for educational assistance for the payment of training costs under
subsection (b)(1) is equal to the number (including any fraction) determined by
dividing the total amount of educational assistance paid such individual for
such training costs by the full-time monthly institutional rate of educational
assistance which, except for subsection (b)(1), such individual would otherwise
be paid under such chapter.
(5)The number of months of
entitlement charged an individual under chapter 1607 of title 10, United States
Code, for educational assistance for the payment of training costs under
subsection (b)(1) is equal to the number (including any fraction) determined by
dividing the total amount of educational assistance paid such individual for
such training costs by the full-time monthly institutional rate of educational
assistance which, except for subsection (b)(1), such individual would otherwise
be paid under such chapter.
(e)Except as otherwise specifically provided
in this section or chapter 30, 32, 35, or 36 of title 38, United States Code,
or chapters 1606 or 1607 of title 10, United States Code, in implementing this
section and making payment under the applicable provision of law referred to in
subsection (a) of training costs associated with the purchase of a franchise
enterprise, the training is deemed to be a course
and the
organization or entity that offers such training is deemed to be an
institution
or educational institution
,
respectively, as those terms are applied under and for purposes of sections
3671, 3673, 3674, 3678, 3679, 3680(a), 3680A, 3681, 3682, 3683, 3685, 3690,
3691, and 3696 of title 38, United States Code.
(f)Payments under this section shall not be construed
as payment for on-job training benefits under title 38, United States
Code.
(g)The
Secretary shall implement the pilot project under this section as soon as
practicable, but in no case later than the date that is 18 months after the
date of the enactment of this Act.
(h)GAO evaluation
and report
(1)The
Comptroller General of the United States shall conduct periodic evaluations of
the pilot project.
(2)Not
later than the date that is the end of the third year of the pilot project, the
Comptroller General shall submit to Congress a report on the evaluations
conducted under paragraph (1). The report shall include the following
information:
(A)The number of
individuals who participated in the pilot project.
(B)The number of
franchise enterprises operated by such individuals by reason of such
participation.
(C)The aggregate
payments made by the Secretary of Veterans Affairs under the pilot
project.
(D)Recommendations
for the continuation of the pilot project.
(E)Recommendations
for such other administrative action or legislation as the Comptroller General
determines to be appropriate.