[Congressional Record Volume 151, Number 33 (Thursday, March 17, 2005)]
[Extensions of Remarks]
[Page E496]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                  VETERANS SELF-EMPLOYMENT ACT OF 2005

                                 ______
                                 

                         HON. RICHARD H. BAKER

                              of louisiana

                    in the house of representatives

                        Thursday, March 17, 2005

  Mr. BAKER. Mr. Speaker, I rise today to introduce the ``Veterans 
Self-Employment Act,'' legislation to establish a five-year pilot 
program that allows our Nation's servicemembers, veterans, national 
guardsman, reservists, and qualified others to use part of their VA 
educational assistance programs to defray legitimate training costs 
associated with obtaining a business franchise.
  Mr. Speaker, franchising is an enormous component of the United 
States economy. According to a study conducted by International 
Franchise Association Educational Foundation, nearly 760,000 franchised 
businesses generate jobs for more than 18 million Americans annually, 
comprising nearly 14 percent of the Nation's private-sector employment 
and accounting for $1.53 trillion in economic output. Over 75 
industries utilize the franchise model for distribution of products and 
services, ranging from familiar restaurants and hotels to home movers, 
tax preparers, personnel providers and so on. Clearly, franchising is a 
critical engine of America's economic growth.
  When an individual acquires a franchise, the individual must first 
undergo various types of training, depending on the specific franchise 
he or she wishes to acquire. Training can include education on 
specialized knowledge of goods, services, policies and practices of the 
individual franchise system. Training may also include customer 
service, daily operational management, business computer systems, 
inventory control, costing and pricing as well as regulatory 
obligations.
  At the same time, Mr. Speaker, American military members, whether as 
active duty servicemembers or veterans, possess a wealth of experience 
and abilities. Their training in the armed forces has provided them 
with high-end skill sets that employers are looking for in the future 
workforce. Yet outside of what has been provided during their tenure 
with the military, statistics show that many of our young military men 
and women have had no formal education or training beyond their high 
school years.
  Mr. Speaker, the ``Veterans Self-Employment Act'' will allow more 
veterans to take advantage of the opportunities in franchising by 
allowing servicemembers, veterans, national guardsman, reservists, and 
eligible dependent spouses or children to apply a portion of his or her 
educational benefit to defray the portion of a franchise purchase cost 
attributable to training. Specifically, in a one-time lump sum payment, 
beneficiaries will be able to use the lesser of \1/3\ of the remaining 
Montgomery GI Benefit entitlement or \1/2\ the franchise fee.
  In addition, the bill provides the Secretary of Veterans Affairs 
proper authority to oversee and avoid any possible abuse of this 
program; submit to the Secretary a detailed description of the training 
program; two year operating rule for franchise businesses; and provide 
individual progress reports regarding successful completion of 
individual training, among other things.
  Mr. Speaker, I urge my colleagues to support our Nation's veterans 
and thus urge floor consideration for the ``Veterans Self-Employment 
Act.''

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