[Congressional Record Volume 148, Number 68 (Thursday, May 23, 2002)]
[Senate]
[Pages S4848-S4851]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. ROCKEFELLER (by request):
  S. 2561. A bill to amend title 38, United States Code, to transfer 
from the Secretary of Labor to the Secretary of Veterans Affairs 
certain responsibilities relating to the provision of employment and 
other services to veterans and other eligible persons; to require the 
establishment of a new competitive grants program through which 
employment service shall be provided to veterans, servicemembers, and 
other eligible persons; and for other purposes; to the Committee on 
Veterans' Affairs.
  Mr. ROCKEFELLER. Mr. President, today I introduce legislation 
requested by the Secretary of Veterans Affairs, as a courtesy to the 
Secretary and the Department of Veterans Affairs, VA. Except in unusual 
circumstances, it is my practice to introduce legislation requested by 
the Administration so that

[[Page S4849]]

such measures will be available for review and consideration. This 
``by-request'' bill contains four titles and proposes to move and 
modify employment service programs for veterans and other eligible 
persons from the Department of Labor to the Department of Veterans 
Affairs.
  Title I of the proposed bill contains provisions governing the 
transition of certain veterans' employment services from the Department 
of Labor's Veterans Employment and Training Service, or VETS, program 
to a new program within the Department of Veterans Affairs to be known 
as the Veterans' Employment, Business Opportunity, and Training, or 
VEBOT, program. This bill would mandate that the VEBOT program provide 
performance-based competitive grants to State Governors or other 
entities for the purpose of providing employment services to veterans.
  The VETS program currently provides grants for Disabled Veterans' 
Outreach Programs and Local Veterans Employment Representatives, LVER. 
These programs are staffed by State employees and provide employment 
services for veterans through State employment service offices and one-
stop centers.
  Section 103 delegates responsibility to the Secretary of Veterans 
Affairs to define by regulations virtually every aspect of the VEBOT 
program. This includes establishing and monitoring performance 
standards for state VEBOT programs, eligibility criteria for VEBOT 
clients, services to be provided by these programs, and service 
delivery practices.
  Titles II and III mandate that responsibility for transition 
assistance and Homeless Veterans Reintegration Programs shall be 
transferred from the Department of Labor to the Department of Veterans 
Affairs.
  The transfer of veterans' employment programs currently administered 
by the Department of Labor to the Department of Veterans Affairs would 
be completed by the later of September 30, 2003, or the date upon which 
the regulations prescribed by the Secretary of Veterans Affairs to 
govern these programs take effect.
  Again, I submit this for the review and consideration of my 
colleagues at the request of the administration.
  I ask unanimous consent that the text of the bill and Secretary 
Principi's transmittal letter that accompanied the draft legislation be 
printed in the Record.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:

                                S. 2561

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION I. SHORT TITLE; REFERENCES TO TITLE 38, UNITED STATES 
                   CODE.

       (a) Short Title.--This Act maybe cited as the ``Veterans' 
     Employment, Business Opportunity, and Training Act of 2002''.
       (b) References.--Except as otherwise expressly provided, 
     whenever in this Act an amendment or repeal is expressed in 
     terms of an amendment, or repeal of, a section or other 
     provision, the reference shall be considered to be made to a 
     section or other provision of title 38, United States Code.

                      TITLE I--EMPLOYMENT SERVICES

     SEC. 101. DEFINITIONS.

       As used in this title--
       (1) The term ``veteran'' has the same meaning as ``eligible 
     veteran'' as defined in section 4211(4) of title 38, United 
     States Code.
       (2) The term ``eligible person'' means--
       (A) the spouse of any person who died of a service-
     connected disability;
       (B) the spouse of any member of the Armed Forces serving on 
     active duty who, at the time of application for assistance 
     under this Act, is listed, pursuant to section 556 of title 
     37, United States Code, and regulations issued thereunder, by 
     the Secretary concerned in one or more of the following 
     categories and has been so listed for a total of more than 
     ninety days: (i) missing in action, (ii) captured in line of 
     duty by a hostile force, or (iii) forcibly detained or 
     interned in line of duty by a foreign government or power; or
       (C) the spouse of any person who has a total disability 
     permanent in nature resulting from a service-connected 
     disability or the spouse of a veteran who died while a 
     disability so evaluated was in existence.
       (3) The term ``State'' means each of the several States of 
     the United States, the District of Columbia, and the 
     Commonwealth of Puerto Rico, and may include, to the extent 
     determined necessary by the Secretary of Veterans Affairs and 
     feasible for all purposes of this title, Guam, American 
     Samoa, the Virgin Islands, the Commonwealth of the Northern 
     Marinas Islands, and the Trust Territory of the Pacific 
     Islands.
       (4) The term ``service member'' has the same meaning as an 
     individual who is a member of the Armed Forces as defined in 
     section 101(10) of title 38, United States Code,and who is 
     being separated from the Armed Forces within the time periods 
     specified in section 1142(a)(3) of title 10, United States 
     Code.

     SEC. 102. PURPOSE

       In furtherance of the Nation's responsibility towards 
     alleviating unemployment and underemployment among veterans, 
     there shall be established a national performance-based job-
     search assistance program that: (1) will provide high-
     quality, job-search service to veterans, servicemembers, and 
     other eligible persons, focused on assisting such individuals 
     in obtaining and maintaining employment, as well as reducing 
     the duration of individual's unemployment; (2) will assist 
     employers in locating and hiring qualified veterans, 
     servicemembers, and other eligible persons; and (3) will be 
     accessible to veterans, servicemembers, and other eligible 
     persons. The Department of Veterans Affairs would continue to 
     aggressively use web-based technology to provide better 
     service to veterans around the world.

     SEC. 103. ESTABLISHMENT OF NEW COMPETITIVE GRANTS PROGRAM.

       (a) Establishment of New Program.--Notwithstanding any 
     other provision of law, the Secretary of Veterans Affairs 
     shall establish a competitive grants program to be referred 
     to as the ``Veterans' Employment, Business Opportunity and 
     Training Program'' (``VEBOT'') through which State Governors 
     or other entities, as may be appropriate, would receive 
     grants for the purpose of providing employment services to 
     veterans, servicemembers, and other eligible persons within 
     each State. The purpose of such program shall be to assist 
     veterans, servicemembers, and other eligible persons in 
     obtaining employment by providing for access to optimal 
     employment opportunities.
       (b) Implementation of New Program.--The Secretary of 
     Veterans Affairs shall prescribe such regulations as the 
     Secretary considers appropriate to implement the VEBOT 
     program required to be established under this section. Such 
     regulations shall address matters relating to the development 
     and implementation of the program, including: (1) the 
     determination of eligibility criteria for affected veterans, 
     servicemembers, or other eligible persons, for employment 
     services and other related services that shall be provided; 
     (2) the nature and type of services to be provided; (3) the 
     most appropriate and efficient means to provide such 
     services; (4) the most appropriate means to monitor and 
     assess the performance of entities providing employment 
     services; (5) the manner in which the Department of Veterans 
     Affairs will cooperate with State employment agencies to 
     ensure that veterans continue to have access to the full 
     range of workforce services available through existing State 
     and local one-stop employment-service delivery systems; (6) 
     the manner in which the Department of Veterans Affairs will 
     coordinate with the Department of Labor to ensure that 
     veterans continue to receive priority or other special 
     consideration in the provision of employment services through 
     existing State and local one-stop employment-service delivery 
     systems, as required by law or regulation; and (7) the entity 
     or organization within the Department of Veterans Affairs 
     that will administer the program. In developing the 
     regulations, the Secretary shall take into consideration the 
     recommendations of the task force required to be established 
     under subsection (c) of this section and shall consult with 
     the Secretary of Defense with respect to eligibility criteria 
     affecting servicemembers.
       (c) Task Force To Be Established; Consultation With 
     Designated Parties.--The Secretary of Veterans Affairs shall 
     establish a task force comprised of at least eleven (but not 
     more than fifteen) members which shall, not later than 180 
     days from the date of its establishment, make recommendations 
     to the Secretary regarding the matters described in 
     subsection (b) of this section. The task force shall include 
     representatives of veterans service organizations, 
     representatives of employers in private industry or employer 
     organizations, and representatives of State Governors. The 
     Secretary of Labor, the Secretary of Defense, and the 
     Secretary of Transportation shall be ex officio members of 
     the task force.
       (d) Grants, Program To Be Competitive; Grants To Include 
     Performance Requirements.--The Secretary of Veterans Affairs 
     shall ensure that all services under the VEBOT program are 
     provided through grants awarded either directly or indirectly 
     on a competitive basis and that such grants include 
     appropriate performance requirements with clear outcome 
     measures. States or other entities may join in consortia to 
     provide services to veterans.
       (e) Performance Measurement.--(1) Each Governor of a State 
     or other entity receiving funds under a grant authorization 
     by this section shall achieve the performance requirements as 
     agreed in the established provisions for such grant. If 
     unanticipated circumstances arising in a State would 
     adversely affect a grantee's ability to meet its performance 
     requirements, the grantee may request that the Secretary 
     adjust the agreed-to levels of performance. If a grantee 
     fails to meet the agreed-to levels of performance, the 
     Secretary of Veterans Affairs may provide to the grantee 
     assistance in such form as the Secretary may consider 
     appropriate,

[[Page S4850]]

     including training, technical assistance, staff 
     development, and activities replicating those used by 
     other successful grants and projects with demonstrated 
     effectiveness. In the event of continued non-performance, 
     the Secretary may, pursuant to such regulations as the 
     Secretary may prescribe, remove the funds from a grantee 
     and directly or indirectly solicit through a competition a 
     new grantee and service provider.
         (2) Consistent with State Law, the Secretary of Veterans 
     Affairs and States and other entities identified to deliver 
     services under the VEBOT program may utilize wage record 
     information for program performance measurement as prescribed 
     by the Secretary of Veterans Affairs. The Secretary of Labor 
     shall provide assistance to the Secretary of Veterans Affairs 
     in gaining access to wage information for this purpose.
       (f) Cost Principles.--(1)(A) Each Governor of a State or 
     other entity receiving funds under this section shall comply 
     with the applicable uniform-cost principles included in the 
     appropriate circulars or directives of the Office of 
     Management and Budget for the type of entity, receiving the 
     funds, as well as regulations prescribed by the Secretary of 
     Veterans Affairs. Each grantee shall establish such fiscal 
     controls and fund accounting procedures as may be necessary 
     to assure the proper disbursal of, and accounting for, 
     Federal funds allocated to any provider receiving funds under 
     this section and shall maintain appropriate records in 
     accordance with generally accepted accounting principles 
     applicable in each State. Each grantee shall comply with the 
     appropriate uniform administrative requirements for grants, 
     contracts and agreements applicable for the type of entity 
     receiving funds as promulgated in circulars or directives of 
     the Office of Management and Budget.
       (B) If a grantee determines that a service provider acting 
     under a contract or sub-grant is not in compliance with the 
     requirements of this Act, the grantee shall take corrective 
     action either to secure the service provider's prompt 
     compliance or to remove the funds from the service provider 
     for failure to so comply. If the grantee fails to take such 
     corrective action, the Secretary may, pursuant to such 
     regulations as the Secretary may prescribe, remove funds from 
     the grantee and directly or indirectly solicit through a 
     competition a new grantee and service provider.
       (2) Unless approved by the Secretary of Veterans Affairs, 
     not more than 15 percent of the funds available under this 
     section to each State Governor or other entity may be 
     expended by a service provider and State Governor for costs 
     of administration. The Secretary shall prescribe regulations 
     governing the expenditure of funds for costs of 
     administration under this paragraph.
       (g) Pilot Projects Authorized.--In connection with the 
     development and implementation of the VEBOT program, the 
     Secretary of Veterans Affairs, during each fiscal year, may 
     reserve up to 25 percent of the total available funding for 
     grants to finance national-level primary services and to 
     create pilot programs and demonstration projects to establish 
     the effectiveness and viability of special proposed 
     innovative program designs and service delivery systems.

     SEC. 104. TRANSFER OF RESPONSIBILITY FOR ADMINISTRATION OF 
                   CERTAIN EMPLOYMENT SERVICES TO SECRETARY OF 
                   VETERANS AFFAIRS.

       Notwithstanding any other provision of law, during the 
     period beginning on October 1, 2002, and ending on the later 
     of September 30, 2003, or the date upon which regulations 
     prescribed by the Secretary of Veterans Affairs under section 
     103(b) of this title become effective, responsibilities 
     assigned to the Secretary of Labor under sections 4101 
     through 4102A (Other than responsibilities assigned under 
     section 4102A regarding the purposes of chapters 42 and 43 of 
     title 38, United States Code), sections 4103 through 4108, 
     and section 4110 of title 38, United States Code, shall be 
     assumed by the Secretary of Veterans Affairs, and the 
     function of the Assistant Secretary of Labor for Veterans' 
     Employment and Training in the Department of Labor, as well 
     as such personnel of the Department of Labor as may be deemed 
     necessary to carry out such function, shall be transferred 
     from the Department of Labor to the Department of Veterans 
     Affairs. During that period, the Secretary of Veterans 
     Affairs shall coordinate activities with the Secretary of 
     Labor to facilitate the transfer of functions associated with 
     the administration of employment services provided under 
     chapter 41 of title 38, United States Code, that 
     are conducted by disabled veteran's outreach programs 
     specialists and local veterans' employment 
     representatives.

     SEC. 105. REPEAL OR AMENDMENT OF EXISTING AUTHORITIES.

       (A) Repeal of Authorities.--Effective on the later of 
     September 30, 2003, or the date upon which regulations 
     prescribed by the Secretary of Veterans Affairs under section 
     103(D) of this Act become effective, the following sections 
     are repealed: 4100 through 4104A, 4105(b), 4106 through 4109, 
     and 4110A.
       (b) Conforming Amendment to Chapter 43 Provision.--Section 
     4321 is amended by striking out ``(through the Veterans' 
     Employment and Training Service)''.
       (c) Advisory Committee.--Section 4110 is amended--
       (1) in subsection (a)(1), by striking out ``Department of 
     Labor'' and by inserting in lieu thereof ``Department of 
     Veterans Affairs'';
       (2) in subsection (a)(2), by inserting ``Department of 
     Veterans Affairs and the'' before ``Department of Labor'';
       (3) in subsection (b), by striking out ``Secretary of 
     Labor'' and inserting in lieu thereof ``Secretary of Veterans 
     Affairs'';
       (4) in subsection (c), by striking out ``Labor'' each place 
     it appears and inserting in lieu thereof ``Veterans 
     Affairs''; and
       (5) in subsection (d)--
       (A) by striking out ``Secretary of Veterans Affairs'' each 
     place it appears and inserting in lieu thereof ``Secretary of 
     Labor'';
       (B) by striking out in paragraph (6) ``The Assistant 
     Secretary of Labor for Veterans Employment and Training'' and 
     inserting in lieu thereof ``The official designated by the 
     Secretary of Veterans Affairs to administer the Veterans' 
     Employment, Business Opportunity and Training Program'';
       (C) by striking out in paragraph (11) ``The Director of the 
     United States Employment Service.'' and inserting in lieu 
     thereof ``A representative of State Governors.''; and
       (D) by striking out in paragraph (12) ``Secretary of 
     Labor'' and inserting in lieu thereof ``Secretary of Veterans 
     Affairs'';
       (6) in subsection (e)--
       (A) by striking out ``Secretary of Labor'' each place it 
     appears and inserting in lieu thereof ``Secretary of Veterans 
     Affairs''; and
       (B) by striking out in paragraph (4) ``through the Veterans 
     Employment and Training Service'';
       (7) in subsection (f)--
       (A) by striking out ``Secretary of Labor'' each place it 
     appears and inserting in lieu thereof ``Secretary of Veterans 
     Affairs''; and
       (B) by striking out ``Department of Labor'' and inserting 
     in lieu thereof ``Department of Veterans Affairs''; and
       (8) in subsection (g), by striking out ``Secretary of 
     Labor'' and inserting in lieu thereof ``Secretary of Veterans 
     Affairs''.

                    TITLE II--TRANSITION ASSISTANCE

     SEC. 201. TRANSFER OF RESPONSIBILITY FOR ADMINISTRATION OF 
                   TRANSITION ASSISTANCE PROGRAM TO THE SECRETARY 
                   OF VETERANS AFFAIRS.

       Notwithstanding any other provision of law--
       (1) references to the ``Secretary of Labor'' in section 
     1144 of title 10, United States Code, shall be deemed to be 
     references to the Secretary of Veterans Affairs;
       (2) references to the ``Secretary of Veterans Affairs'' in 
     section 1144 of title 10, United States Code, shall be deemed 
     to be references to the Secretary of Labor; and
       (3) section 1144(d) of title 10, United States Code, is 
     amended by striking out paragraph (1) and inserting in lieu 
     thereof the following:
       ``(1) provide, as the case may be, for the use of personnel 
     of grant recipients under section 103(b) of the Veterans' 
     Employment, Business Opportunity, and Training Act of 2002 or 
     such other personnel as the Secretary of Veterans Affairs may 
     determine to be appropriate, to the extent that the 
     Secretary determines that such use will not significantly 
     interfere with the provision of services or other benefits 
     to eligible veterans and other eligible recipients of 
     services or benefits under programs administered by the 
     Secretary.''.

          TITLE III--HOMELESS VETERANS' REINTEGRATION PROGRAMS

     SEC. 301. TRANSFER OF RESPONSIBILITY FOR ADMINISTRATION OF 
                   HOMELESS VETERANS' REINTEGRATION PROGRAM TO THE 
                   SECRETARY OF VETERANS AFFAIRS.

       Section 2021 is amended--
       (a) by striking out ``Secretary of Labor'' each place it 
     appears and inserting in lieu thereof ``Secretary of Veterans 
     Affairs''; and
       (b) by striking out subsection (c) and redesignating 
     subsection (d) as subsection (c).

                        TITLE IV--EFFECTIVE DATE

     SEC. 401. EFFECTIVE DATE.

       Except where provided otherwise, the provisions of this Act 
     shall become effective on October 1, 2002.
                                  ____

                                                     May 15, 2002.
     Hon. Richard B. Cheney,
     President of the Senate,
     Washington, DC.
       Dear Mr. President: There is transmitted herewith a draft 
     bill, the ``Veterans' Employment, Business Opportunity, and 
     Training Act of 2002,'' to amend title 38, United States 
     Code, to transfer from the Secretary of Labor to the 
     Secretary of Veterans Affairs certain responsibilities 
     relating to the provision of employment and other services to 
     veterans and other eligible persons; to require the 
     establishment of a new competitive grants program through 
     which employment services shall be provided to veterans, 
     servicemembers, and other eligible persons; and for other 
     purposes. I request that this bill be referred to the 
     appropriate committee for prompt consideration and enactment.
       Title I of the draft bill contains provisions that would 
     transfer from the Secretary of Labor to the Secretary of 
     Veterans Affairs responsibility, as well as staffing, for the 
     administration of employment and other services to veterans 
     under chapter 41 of title 38, United States Code, and require 
     the Secretary of Veterans Affairs to establish a new 
     competitive grants program, entitled the ``Veterans' 
     Employment, Business Opportunity and Training Program'' 
     (VEBOT), to replace current programs under chapter 41. The 
     VEBOT program would supplant three current grants activities 
     currently administered by the Assistant Secretary of Labor 
     for Veterans Employment and Training, including the Disabled 
     Veterans Outreach Program

[[Page S4851]]

     (DVOP), the Local Veterans Employment Representatives (LVER), 
     and the Homeless Veterans Reintegration Program (HVRP). 
     Because of the lead-time required to implement grants, VA 
     would keep existing Department of Labor-funded grants in 
     place during at least the first year after transfer. The 
     President's budget for Fiscal Year 2003 reflects the transfer 
     of $197 million and 199 full-time employee equivalents (FTEE) 
     from the Department of Labor to the Department of Veterans 
     Affairs (VA) to implement this proposal.
       Over the last decade, veterans have received less-than-
     adequate job-search assistance. A report issued by the 
     Congressional Commission on Servicemembers and Veterans 
     Transition Assistance, and at least four reports issued by 
     the General Accounting Office in the past five years, 
     extensively document long-standing shortfalls with the DVOP 
     and LVER programs. In spite of awareness in the veterans 
     community that these two programs are falling short of the 
     excellence that should be demanded of programs so important 
     to many veterans' ability to enjoy and secure the productive 
     life that their service defended for all Americans, 
     significant improvements to the programs have not occurred 
     because of legislative constraints. In order to improve 
     services to veterans, legislative reforms are essential. We 
     also believe that placement of the employment services 
     programs within VA will strengthen the focus on veterans' 
     needs. In light of VA's clear mission of service to veterans, 
     VA would be in a stronger position to objectively evaluate 
     veterans' employment assistance needs and develop a program 
     that better meets veterans' needs, while at the same time 
     ensuring adequate flexibility in design to allow for adapting 
     to the needs of future generations of veterans.
       Section 102 of the draft bill would set forth a statement 
     regarding the establishment of a national performance-based 
     job-search assistance program that: (1) would provide high-
     quality, job-search service to veterans, servicemembers, and 
     other eligible persons, focused on assisting such individuals 
     in obtaining and maintaining employment, as well as reducing 
     the duration of individuals' unemployment; (2) would assist 
     employers in locating and hiring qualified veterans, 
     servicemembers, and other eligible persons; and (3) would be 
     accessible to veterans, servicemembers, and other eligible 
     persons. VA would continue to aggressively use web-based 
     technology to provide better service to veterans around the 
     world.
       Section 103 of the draft bill would require the Secretary 
     to establish the VEBOT program, through which State Governors 
     or other entities, as may be appropriate, would receive 
     grants for the purpose of providing for employment services 
     to veterans, servicemembers, and other eligible persons 
     within each State. The stated purpose of the VEBOT program 
     would be to assist veterans, servicemembers, and other 
     eligible persons in obtaining employment by providing for 
     access to optimal employment opportunities. The Secretary 
     would be required to ensure that all services under the VEBOT 
     program are provided through grants awarded either directly 
     or indirectly on a competitive basis and that such grants 
     include appropriate performance requirements with clear 
     outcome measures.
       The Secretary would further be directed to prescribe 
     regulations that would address matters relating to the 
     development and implementation of the program, including: (1) 
     the determination of eligibility criteria for affected 
     veterans, servicemembers, or other eligible persons for 
     employment services and other related services that shall be 
     provided; (2) the nature and type of services to be provided; 
     (3) the most appropriate and efficient means to provide such 
     services; (4) the most appropriate means to monitor and 
     assess the performance of entities providing employment 
     services; (5) the manner in which the Department of Veterans 
     Affairs will cooperate with State employment agencies to 
     ensure that veterans continue to have access to the full 
     range of workforce services available through existing State 
     and local one-stop employment-service delivery systems; (6) 
     the manner in which the Department of Veterans Affairs will 
     coordinate with the Department of Labor to ensure that 
     veterans continue to receive priority or other special 
     consideration in the provision of employment services through 
     existing State and local one-stop employment-service delivery 
     systems, as required by law or regulation; and (7) the entity 
     or organization within the Department of Veterans Affairs 
     that will administer the program. In developing the 
     implementing regulations, the Secretary would be required to 
     take into consideration the recommendations of a task force 
     that would be required to be established under this section.
       Section 103 would also set forth specific performance-
     measurement criteria and responsibilities, as well as 
     procedures for ensuring compliance with cost principles, and 
     further, would authorize the Secretary to spend portions of 
     available funding to finance national-level primary services 
     and create pilot programs and demonstration projects to 
     establish the effectiveness and viability of specific 
     proposed innovative program designs and service delivery 
     systems.
       Section 104 of the draft bill would provide that, 
     notwithstanding any other provision of law, during the period 
     beginning on October 1, 2002, and ending on the later of 
     September 30, 2003, or the date upon which regulations 
     prescribed by the Secretary of Veterans Affairs become 
     effective, the responsibilities assigned to the Secretary of 
     Labor under sections 4101 through 4102A (other than 
     responsibilities assigned under section 4102A regarding the 
     purposes of chapters 42 and 43 of title 38, United States 
     Code), sections 4103 through 4108, and section 4110 of title 
     38, United States Code, shall be assumed by the Secretary of 
     Veterans Affairs. The function of the Assistant Secretary of 
     Labor for Veterans' Employment and Training in the Department 
     of Labor, as well as such personnel of the Department of 
     Labor as may be deemed necessary to carry out such function, 
     would be transferred from the Department of Labor to the 
     Department of Veterans Affairs. Further, during that period, 
     the two Secretaries would coordinate activities so as to 
     facilitate the transfer of functions associated with the 
     administration of employment services provided under chapter 
     41 of title 38, United States Code, that are conducted by 
     disabled veterans' outreach programs specialists and local 
     veterans' employment representatives. This would include 
     activities relating to the transition assistance program for 
     servicemembers nearing separation from the Armed Forces and 
     for homeless veterans in dire need of employment.
       Section 105 of the draft bill would repeal, effective on 
     the later of September 30, 2003, or the date upon which 
     regulations prescribed by the Secretary of Veterans Affairs 
     under section 103(b) of this Act become effective, several 
     sections of title 38, United States Code, that currently 
     govern the provision of employment-related services under 
     chapter 41. In addition, section 105 would make several 
     amendments to section 4110 of title 38, under which an 
     Advisory Committee on Veterans Employment and Training is 
     established, to reflect the transfer of responsibilities for 
     employment-related services for veterans from the Department 
     of Labor to the Department of Veterans Affairs.
       Section 201 of the draft bill would amend section 1144 of 
     title 10, United States Code, to provide for the transfer of 
     responsibility for the administration of the transition 
     assistance program from the Secretary of Labor to the 
     Secretary of Veterans Affairs. It would further provide, as 
     the case may be, for the use of personnel of grant recipients 
     under section 103(b) of the Veterans' Employment, Business 
     Opportunity, and Training Act of 2002 or such other personnel 
     as the Secretary of Veterans Affairs may determine to be 
     appropriate, to the extent that the Secretary determines that 
     such use will not significantly interfere with the provision 
     of services or other benefits to eligible veterans and other 
     eligible recipients of services or benefits under programs 
     administered by the Secretary.
       Section 301 of the draft bill would amend section 2021 of 
     title 38 to provide for the transfer of responsibility for 
     the administration of the Homeless Veterans Reintegration 
     Project from the Secretary of Labor to the Secretary of 
     Veterans Affairs. With respect to this program, we fully 
     expect to expand on what we believe have been highly 
     successful partnering efforts with States, local governments, 
     Native American Tribal governments, and faith-based and non-
     profit organizations under the State Cemetery, State Home and 
     Homeless Service Providers Grant and Per Diem program.
       Finally, section 401 of the draft bill would provide that, 
     except where otherwise provided, the provisions of the Act 
     would become effective on October 1, 2002.
       The Administration's budget reflects the transfer of 
     funding ($197 million in FY 2003) to support the affected 
     employment services programs from the Department of Labor to 
     VA and the transfer to VA of 199 FTEE to implement the 
     programs. Accordingly, no cost is associated with the 
     Administration's proposal.
       The Office of Management and Budget advises that there is 
     no objection to the submission of this legislation to the 
     Congress and that its enactment would be in accord with the 
     program of the President.
           Sincerely yours,
                                              Anthony J. Principi.
                                 ______