[Congressional Record Volume 157, Number 172 (Thursday, November 10, 2011)]
[Senate]
[Pages S7336-S7346]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
3% WITHHOLDING REPEAL AND JOB CREATION ACT
The PRESIDING OFFICER. Under the previous order, the Senate will
resume consideration of H.R. 674, which the clerk will report.
The bill clerk read as follows:
A bill (H.R. 674) to amend the Internal Revenue Code of
1986 to repeal the imposition of 3 percent withholding on
certain payments made to vendors by government entities, to
modify the calculation of modified adjusted gross income for
purposes of determining eligibility for certain healthcare-
related programs, and for other purposes.
Pending:
Reid (for Tester) amendment No. 927, as modified, to amend
the Internal Revenue Code of 1986 to permit a 100-percent
levy for payments to Federal vendors relating to property, to
require a study on how to reduce the amount of Federal taxes
owed but not paid by Federal contractors, and to make certain
improvements in the laws relating to the employment and
training of veterans.
McCain amendment No. 928 (to amendment No. 927), to provide
American jobs through economic growth.
The PRESIDING OFFICER. There will be 15 minutes of debate equally
divided.
The Senator from Montana.
Amendment No. 927
Mr. TESTER. Mr. President, the economy has hit us all hard. Montanans
who have done everything right are losing their jobs, and some are even
losing their homes. To get the economy back on track we need to employ
some common sense. We need to put politics aside, and we need to work
together on behalf of the struggling families across this country.
In particular, we need to do the right thing on behalf of our men and
women who have served our Nation in uniform. The unemployment rate for
younger veterans who have served since September 11, 2001, continues to
remain well above average. It is unacceptably high and is getting
worse. It is a national disgrace. Our service men and women deserve
better.
These men and women left the comforts of home and put their lives on
hold to fight for us in some of the harshest conditions imaginable. Far
too many have paid the ultimate sacrifice, while thousands continue to
struggle with the wounds of war--those seen and those unseen. They face
daily challenges many of us can never fully comprehend, and they have
endured sacrifices we can never fully repay. Many of them served
multiple tours. Even the Montana National Guard's largest unit was sent
to Iraq twice in the last 8 years. That is a long time--especially for
a Reserve component--to be away from home. But they carried out their
assignments as the best-trained, most professional military in the
world. And for that we are proud and we are grateful.
When I visited Iraq and Afghanistan earlier this year, I was
protected by some of the most well-trained, professional, and downright
inspirational men and women our country has ever produced. I recall in
one instance standing at a command operating base looking out over a
valley in Afghanistan where, months earlier, the Taliban had run
roughshod. I thought about how difficult the conditions were for the
young men and women who were there wearing the uniform of our country,
standing shoulder to shoulder with members of the Afghan Army.
[[Page S7337]]
In the hours we were there, I did not hear one complaint, only
commitment and pride in their work from our troops. I will never forget
that. If we fail to do right by them, what does that say about us?
Simply put, we have a responsibility to provide for all veterans and
their families. It is something I have never taken lightly, and it is
something that continues to motivate me every single day. It means
providing them with the best services and care, and it means giving
them every opportunity to succeed and empowering them with the tools
they need to find good-paying jobs.
The legislation before us today does exactly that. It would provide
important tax credits to encourage more employers to hire veterans who
are out of work. It would provide additional education and job training
for veterans to gain additional skills to be more successful in an
increasingly competitive job market. It would take important steps to
help ease the transition between military service and the civilian
workforce.
Let me give an example of how this bill would directly affect one of
my constituents. A chap by the name of Nathan Wiens grew up in Glasgow,
MT, a small town in the northeastern corner of the State. He attended
Montana State University on an ROTC scholarship, earned a degree in
civil engineering, and was deployed to Iraq as a captain in the Army.
During his years in the Army, Nathan used his engineering degree. But
when he came home, his military experience did not count toward his
professional engineering certification. Now Nathan has to spend a
couple of years building up the civilian equivalent of the military
experience he already has just to be able to qualify to become a
certified professional engineer. This bill will help fix it so that
military experience counts.
This bill says if someone spends 6 years in the Army driving a truck,
they ought to be able to get their commercial driver's license a whole
lot faster than someone who does not have that experience.
It would require the Department of Labor, in conjunction with the VA
and the Department of Defense, to take a hard look at what military
skills and training should be translatable to the civilian sector. It
would make it easier to get these licenses and certifications that our
veterans need.
This bill will give employers valuable information about the skill
sets our veterans have gained while they have served in the military.
These are the kinds of commonsense ideas we should be taking a look at.
It is the responsible thing to do for America's veterans.
It would not surprise anyone this proposal has ideas from both
Democrats and Republicans because this is an issue that shouldn't be
partisan. Every Member of the Senate should be committed to helping
veterans find jobs.
Montana has more veterans per capita than any other State in the
Union, except Alaska. We have 103,000 veterans in Montana. As I travel
across the State and visit with them and their families, the topic of
veterans employment remains at the forefront of their minds. It is
important to them. It is important to their friends and loved ones. It
is important to our communities. It should be important to each and
every one of us.
We deal with a lot of contentious issues here, but this should not be
one of them. Let's work together to do the right thing and get this
bill passed because it is the least we can do for those to whom we owe
so much.
With that, Mr. President, I ask for the yeas and nays on the bill.
The PRESIDING OFFICER. Without objection, the Senator may ask for the
yeas and nays on his amendment.
Mr. TESTER. I ask for the yeas and nays on the amendment.
The PRESIDING OFFICER. Is there a sufficient second?
There is a sufficient second.
The yeas and nays were ordered.
The PRESIDING OFFICER. The Senator from Massachusetts.
Mr. BROWN of Massachusetts. Mr. President, I first want to thank
Senator Tester for his comments.
Mr. President, if we pass these two measures today, if we repeal the
3-percent withholding and take steps to help our veterans find work,
the American people will win, and for 1 day at least partisanship will
lose.
Veterans Day is tomorrow. So let's renew our commitment to the men
and women who have answered the call of duty and who have fought for us
and for our freedom and continue to do so.
Our returning heroes face a jobs crisis. We all know it. We hear
about it. It is as relevant in Massachusetts as it is in Montana and
every other State in this great country. We are here to make a
difference today, and that is what this bill will do. This bill will
give a much needed boost to the employment of veterans.
I earlier filed a hire a hero act, and I am glad it has been
incorporated with the President's proposals and is moving forward
today. The 3-percent withholding provision is also something I have
been working on for many months as well. So I am glad these two bills
are coming to fruition. It will give, as I said, a much needed boost to
our unemployed heroes, and it will improve our veterans transitioning
from military to civilian life.
I hope Congress will seize on this momentum and work in a bipartisan
manner to pass more jobs legislation. Contrary to what we read and hear
from the media, there are things we can all agree on, and these are two
good examples.
So I say again, if we can do these two things--repeal the 3-percent
withholding and help our veterans--maybe it will usher in an era of
good will, with one good deed leading to another good deed, and so on,
and so on. So let's end this stealth tax and do something meaningful
for our veterans. Let's start working together. Above all, let's put
Americans first because we are all Americans first.
I thank the Chair, and I yield the floor.
The PRESIDING OFFICER. The Senator from Montana.
Mr. TESTER. Mr. President, I ask unanimous consent that there be 2
minutes of debate equally divided between the votes.
The PRESIDING OFFICER. Without objection, it is so ordered.
Mr. TESTER. Mr. President, I suggest the absence of a quorum.
The PRESIDING OFFICER. The clerk will call the roll.
The assistant editor of the Daily Digest proceeded to call the roll.
Mr. PAUL. I ask unanimous consent that the order for the quorum call
be rescinded.
The PRESIDING OFFICER. Without objection, it is so ordered.
Mr. PAUL. Mr. President, I rise in support of the Republican jobs
plan. I think it is very important that the American people know there
are different visions about how we would create jobs in this country,
whether the jobs should be created by the private sector or the jobs
should be created by borrowing money from China, taxing us more, and
then redistributing that money into government-created jobs.
There are different visions in this country about how we create jobs.
The one thing we know is, we need millions of jobs--not tens of
thousands of jobs but millions of jobs.
What I ask the President to do is to come in from the campaign trail
and talk to us. I think he needs to be here, not raising money, not out
fundraising for his campaign, not bashing Republicans on the campaign
trail. He needs to be in Washington. He needs to be engaged with the
committee, the supercommittee. He needs to be engaged with Republican
counterparts.
I have told the President, personally, I will work with him. I will
come from the Republican side of the aisle, and we can figure out areas
in which we agree. There are many aspects of the Republican jobs plan
that some Democrats have said they might support: Reducing the
corporate income tax, lowering the rates, and eliminating loopholes.
The thing is, on the campaign trail, we are told Republicans are
unwilling to eliminate loopholes for millionaires who don't pay taxes.
The truth is, we are very willing. This has been offered in the
supercommittee. It has been offered by our side. It is offered in the
Republican jobs plan. We are willing to eliminate loopholes that make
the Tax Code unfair, that allow either millionaires or corporations to
pay no taxes. But we want to do it in the context of tax reform.
There are a couple things historically that government has done that
has created jobs. In the 1960s, President Kennedy reduced the top rate
from 90 to 70.
[[Page S7338]]
Unemployment was cut in half. In the 1980s, Reagan lowered the top rate
from 70 to 50. Unemployment was cut in half. Reagan again lowered the
top rate from 50 to 28, and unemployment was cut in half.
Interestingly, through all these rate cuts of the top taxpayers, as
we cut the rates, tax revenue didn't go down. Tax revenue has stayed
about 18 percent of GDP no matter what the rates are. But what lowering
the top rates does is it spawns economic activity.
So I ask the President to come in from the campaign trail, to come in
from his Canadian bus tour, and talk to us on the Hill--talk to us
about ways we could create jobs again. We need millions of jobs.
Fourteen million Americans are out of work. Two million Americans have
lost their jobs since this President came into the White House.
They say the definition of ``insanity'' is doing the same thing over
and over and expecting a different result. We need conversation on
Capitol Hill between Republicans and Democrats, but we also need
leadership from the White House. Continuing to bash us on the campaign
trail is getting us nowhere as a country.
A couple things I have heard from the President as he has campaigned
around the country: One, he said Republicans are too stupid to
understand his plan, so he is going to break up his jobs plan and give
it to us in pieces because we can't understand the whole thing.
In diplomacy, they sometimes talk about the stick and the carrot. I
am sure feeling the stick from the President, but I am not seeing a
carrot. What we need to have is conversation where we can bridge these
differences and find some common ground.
We have a corporate income tax higher than anybody in the world. We
keep heaping new regulations onto our businesses. We need to lower our
corporate income tax. How can they compete? We worry about jobs going
overseas?
The PRESIDING OFFICER. The Senator's time has expired.
Mr. PAUL. I urge support of the Republican jobs plan.
Mr. LEVIN. Mr. President, the legislation before the Senate is the
latest effort by Senate Democrats to pass portions of the President's
American Jobs Act that will boost the economy and put Americans back to
work. The underlying legislation will repeal a 3 percent withholding on
contractors that was designed to encourage contractors to pay their
taxes; and the amendment offered by my colleague from Montana, Senator
Tester, will help veterans by providing hiring incentives to employers
who hire our heroes and expanding education and training opportunities
for older veterans.
The 3 percent withholding on contractors was enacted in 2005 and,
because of implementation problems, has never been put into effect. I
have heard from businesses in Michigan, universities in Michigan,
mayors and countless others that this withholding provision is
unworkable. Because Congress and the President recognize this problem,
Congress has continued to delay its effective date.
The repeal of the 3 percent withholding requirement should be paid
for by finding other ways to promote tax fairness and improving tax
compliance. I have offered several of these proposals before.
Unfortunately, rather than paying for this bill with measures to
promote tax compliance and fairness, it is paid for by revising the way
the modified adjusted gross income is calculated in determining
eligibility for health care programs. According to the Joint Tax
Committee and the Congressional Budget Office, this means that
somewhere between 500,000 and a million people receiving early retiree,
disability, and other social security benefits will no longer be
eligible for Medicaid. If changes in income eligibility for Medicaid
need to be considered, then any savings from those changes should be
reinvested back into Medicaid to strengthen our health care system. I
believe it is unwise to take savings from health care programs to pay
for the repeal of the 3 percent withholding requirement. This
legislation does do some important things to help America's veterans
who continue to face big challenges even after leaving the battlefield.
Veterans comprise almost 10 percent of the U.S. population. While
overall employment of veterans has been at or below the national
average, those veterans who have served in the past decade have seen
their unemployment rate rise to above the national average. Male
veterans aged 18-24 had an unemployment rate of almost 22 percent in
2010. Almost 12 percent of all homeless adults are veterans. It is a
national embarrassment that we are failing to serve those who have
served us.
This bill will provide business tax credits for the hiring of
veterans, including those with disabilities. The tax credit is scaled
to increase depending on how long that veteran has been unemployed. The
bill also helps unemployed veterans pay for school and provides
Vocational Rehabilitation and Employment Benefits for disabled
veterans. And finally, the bill allows active servicemembers to begin
pursuing federal employment opportunities prior to separation from the
military, easing their transition from the military to jobs at the VA,
Homeland Security or other federal agencies that would benefit from the
experience a veteran offers.
Because it will help to hire veterans, who have sacrificed so much to
help our country, and repeals the 3 percent withholding requirement, I
will vote for the bill although the health care eligibility changes are
the wrong way to pay for.
Amendment No. 928
Mr. GRASSLEY. Mr. President, I ask for the yeas and nays.
The PRESIDING OFFICER. Is there a sufficient second?
There is a sufficient second.
The clerk will call the roll.
The assistant editor of the Daily Digest called the roll.
Mr. LEE (when his name was called). ``Present.''
Mr. DURBIN. I announce that the Senator from Hawaii (Mr. Inouye) is
necessarily absent.
Mr. KYL. The following Senators are necessarily absent: the Senator
from Arizona (Mr. McCain) and the Senator from Alabama (Mr. Sessions).
The PRESIDING OFFICER (Mr. Sanders). Are there any other Senators in
the Chamber desiring to vote?
The result was announced--yeas 40, nays 56, as follows:
[Rollcall Vote No. 202 Leg.]
YEAS--40
Alexander
Ayotte
Barrasso
Blunt
Boozman
Burr
Chambliss
Coats
Coburn
Cochran
Corker
Cornyn
Crapo
DeMint
Enzi
Graham
Grassley
Hatch
Heller
Hoeven
Hutchison
Inhofe
Isakson
Johanns
Johnson (WI)
Kirk
Kyl
Lugar
McConnell
Moran
Paul
Portman
Risch
Roberts
Rubio
Shelby
Thune
Toomey
Vitter
Wicker
NAYS--56
Akaka
Baucus
Begich
Bennet
Bingaman
Blumenthal
Boxer
Brown (MA)
Brown (OH)
Cantwell
Cardin
Carper
Casey
Collins
Conrad
Coons
Durbin
Feinstein
Franken
Gillibrand
Hagan
Harkin
Johnson (SD)
Kerry
Klobuchar
Kohl
Landrieu
Lautenberg
Leahy
Levin
Lieberman
Manchin
McCaskill
Menendez
Merkley
Mikulski
Murkowski
Murray
Nelson (NE)
Nelson (FL)
Pryor
Reed
Reid
Rockefeller
Sanders
Schumer
Shaheen
Snowe
Stabenow
Tester
Udall (CO)
Udall (NM)
Warner
Webb
Whitehouse
Wyden
ANSWERED ``PRESENT''--1
Lee
NOT VOTING--3
Inouye
McCain
Sessions
The PRESIDING OFFICER. On this vote, the yeas are 40, the nays are
56. One Senator responded ``present.''
Under the previous order requiring 60 votes for the adoption of this
amendment, the amendment is rejected.
Amendment No. 927, As Modified
The PRESIDING OFFICER. There will now be 2 minutes of debate equally
divided. The Senator from Montana.
Mr. TESTER. Mr. President, we are now going to take up amendment No.
927, which is the VOW To Hire Heroes Act. This is a veterans employment
act, broad based, bipartisan. It has Republican ideas and it has
Democratic ideas in it. It is paid for. It is the right thing to do
because we all know that veterans right now returning from Iraq and
Afghanistan have a much higher unemployment rate than the rest of our
population. Because of that high unemployment rate it is necessary we
get this amendment agreed to and attached to this bill.
[[Page S7339]]
I ask concurrence with amendment No. 927.
The PRESIDING OFFICER. The Senator from Virginia.
Mr. WARNER. Mr. President, I rise in support of my friend, the
Senator from Montana, and commend him for his leadership on this issue.
I look forward to supporting him in his efforts to support our
veterans.
The PRESIDING OFFICER. Is there further debate?
If not, the question is on agreeing to the amendment.
The yeas and nays have been ordered.
The clerk will call the roll.
The bill clerk called the roll.
Ms. SNOWE (when her name was called). ``Present.''
Mr. DURBIN. I announce that the Senator from Hawaii (Mr. Inouye) is
necessarily absent.
Mr. KYL. The following Senators are necessarily absent: the Senator
from Arizona (Mr. McCain), the Senator from Kentucky (Mr. Paul), and
the Senator from Alabama (Mr. Sessions).
The PRESIDING OFFICER. Are there any other Senators in the Chamber
desiring to vote?
The result was announced--yeas 94, nays 1, as follows:
[Rollcall Vote No. 203 Leg.]
YEAS--94
Akaka
Alexander
Ayotte
Barrasso
Baucus
Begich
Bennet
Bingaman
Blumenthal
Blunt
Boozman
Boxer
Brown (MA)
Brown (OH)
Burr
Cantwell
Cardin
Carper
Casey
Chambliss
Coats
Coburn
Cochran
Collins
Conrad
Coons
Corker
Cornyn
Crapo
Durbin
Enzi
Feinstein
Franken
Gillibrand
Graham
Grassley
Hagan
Harkin
Hatch
Heller
Hoeven
Hutchison
Inhofe
Isakson
Johanns
Johnson (SD)
Johnson (WI)
Kerry
Kirk
Klobuchar
Kohl
Kyl
Landrieu
Lautenberg
Leahy
Lee
Levin
Lieberman
Lugar
Manchin
McCaskill
McConnell
Menendez
Merkley
Mikulski
Moran
Murkowski
Murray
Nelson (NE)
Nelson (FL)
Portman
Pryor
Reed
Reid
Risch
Roberts
Rockefeller
Rubio
Sanders
Schumer
Shaheen
Shelby
Stabenow
Tester
Thune
Toomey
Udall (CO)
Udall (NM)
Vitter
Warner
Webb
Whitehouse
Wicker
Wyden
NAYS--1
DeMint
ANSWERED ``PRESENT''--1
Snowe
NOT VOTING--4
Inouye
McCain
Paul
Sessions
The amendment (No. 927), as modified, was agreed to.
The PRESIDING OFFICER. Under the previous order requiring 60 votes
for the adoption of this amendment, the amendment, as modified, is
agreed to.
The amendment was ordered to be engrossed and the bill to be read a
third time.
The bill was read the third time.
The PRESIDING OFFICER. The Senator from Massachusetts.
Mr. BROWN of Massachusetts. Mr. President, I just want to remind
everyone this is on the 3-percent withholding. I know I have been
working on this and others have been working on this for some time.
This is part of the President's jobs bill. Who said we can't get
together and do something? By working together, we are going to do
something the American people want: get rid of the stealth tax that is
basically hurting job creation in my State and in other States
throughout the country.
I wish to thank the leadership on both sides for working through
this. I encourage everyone to vote for it. I hope we can have a nice
signing ceremony when it is done to show there is truly bipartisan work
because one good deed equals another good deed and so on and so forth.
Remember, we are Americans first. We need to start doing the things
the American people want us to do.
I thank the Chair.
The PRESIDING OFFICER. The bill having been read the third time, the
question is, Shall the bill, as amended, pass?
The yeas and nays are ordered.
The clerk will call the roll.
The legislative clerk called the roll.
Ms. SNOWE (when her name was called). ``Present.''
Mr. DURBIN. I announce that the Senator from North Carolina (Mrs.
Hagan) and the Senator from Hawaii (Mr. Inouye) are necessarily absent.
Mr. KYL. The following Senators are necessarily absent: the Senator
from Arizona (Mr. McCain) and the Senator from Alabama (Mr. Sessions).
The PRESIDING OFFICER. Are there any other Senators in the Chamber
desiring to vote?
The result was announced--yeas 95, nays 0, as follows:
[Rollcall Vote No. 204 Leg.]
YEAS--95
Akaka
Alexander
Ayotte
Barrasso
Baucus
Begich
Bennet
Bingaman
Blumenthal
Blunt
Boozman
Boxer
Brown (MA)
Brown (OH)
Burr
Cantwell
Cardin
Carper
Casey
Chambliss
Coats
Coburn
Cochran
Collins
Conrad
Coons
Corker
Cornyn
Crapo
DeMint
Durbin
Enzi
Feinstein
Franken
Gillibrand
Graham
Grassley
Harkin
Hatch
Heller
Hoeven
Hutchison
Inhofe
Isakson
Johanns
Johnson (WI)
Johnson (SD)
Kerry
Kirk
Klobuchar
Kohl
Kyl
Landrieu
Lautenberg
Leahy
Lee
Levin
Lieberman
Lugar
Manchin
McCaskill
McConnell
Menendez
Merkley
Mikulski
Moran
Murkowski
Murray
Nelson (NE)
Nelson (FL)
Paul
Portman
Pryor
Reed
Reid
Risch
Roberts
Rockefeller
Rubio
Sanders
Schumer
Shaheen
Shelby
Stabenow
Tester
Thune
Toomey
Udall (CO)
Udall (NM)
Vitter
Warner
Webb
Whitehouse
Wicker
Wyden
ANSWERED ``PRESENT''--1
Snowe
NOT VOTING--4
Hagan
Inouye
McCain
Sessions
The bill (H.R. 674), as amended, was passed, as follows:
H.R. 674
Resolved, That the bill from the House of Representatives
(H.R. 674) entitled ``An Act to amend the Internal Revenue
Code of 1986 to repeal the imposition of 3 percent
withholding on certain payments made to vendors by government
entities, to modify the calculation of modified adjusted
gross income for purposes of determining eligibility for
certain healthcare-related programs, and for other
purposes.'', do pass with the following amendment:
Strike title II and insert the following:
TITLE II--VOW TO HIRE HEROES
Sec. 201. Short title.
Subtitle A--Retraining Veterans
Sec. 211. Veterans retraining assistance program.
Subtitle B--Improving the Transition Assistance Program
Sec. 221. Mandatory participation of members of the Armed Forces in the
Transition Assistance Program of Department of Defense.
Sec. 222. Individualized assessment for members of the Armed Forces
under transition assistance on equivalence between skills
developed in military occupational specialties and
qualifications required for civilian employment with the
private sector.
Sec. 223. Transition Assistance Program contracting.
Sec. 224. Contracts with private entities to assist in carrying out
Transition Assistance Program of Department of Defense.
Sec. 225. Improved access to apprenticeship programs for members of the
Armed Forces who are being separated from active duty or
retired.
Sec. 226. Comptroller General review.
Subtitle C--Improving the Transition of Veterans to Civilian Employment
Sec. 231. Two-year extension of authority of Secretary of Veterans
Affairs to provide rehabilitation and vocational benefits
to members of the Armed Forces with severe injuries or
illnesses.
Sec. 232. Expansion of authority of Secretary of Veterans Affairs to
pay employers for providing on-job training to veterans
who have not been rehabilitated to point of
employability.
Sec. 233. Training and rehabilitation for veterans with service-
connected disabilities who have exhausted rights to
unemployment benefits under State law.
Sec. 234. Collaborative veterans' training, mentoring, and placement
program.
Sec. 235. Appointment of honorably discharged members and other
employment assistance.
Sec. 236. Department of Defense pilot program on work experience for
members of the Armed Forces on terminal leave.
Sec. 237. Enhancement of demonstration program on credentialing and
licensing of veterans.
[[Page S7340]]
Sec. 238. Inclusion of performance measures in annual report on veteran
job counseling, training, and placement programs of the
Department of Labor.
Sec. 239. Clarification of priority of service for veterans in
Department of Labor job training programs.
Sec. 240. Evaluation of individuals receiving training at the National
Veterans' Employment and Training Services Institute.
Sec. 241. Requirements for full-time disabled veterans' outreach
program specialists and local veterans' employment
representatives.
Subtitle D--Improvements to Uniformed Services Employment and
Reemployment Rights
Sec. 251. Clarification of benefits of employment covered under USERRA.
Subtitle E--Other Matters
Sec. 261. Returning heroes and wounded warriors work opportunity tax
credits.
Sec. 262. Extension of reduced pension for certain veterans covered by
Medicaid plans for services furnished by nursing
facilities.
Sec. 263. Reimbursement rate for ambulance services.
Sec. 264. Extension of authority for Secretary of Veterans Affairs to
obtain information from Secretary of Treasury and
Commissioner of Social Security for income verification
purposes.
Sec. 265. Modification of loan guaranty fee for certain subsequent
loans.
TITLE III--OTHER PROVISIONS RELATING TO FEDERAL VENDORS
Sec. 301. One hundred percent levy for payments to Federal vendors
relating to property.
Sec. 302. Study and report on reducing the amount of the tax gap owed
by Federal contractors.
TITLE IV--MODIFICATION OF CALCULATION OF MODIFIED ADJUSTED GROSS INCOME
FOR DETERMINING CERTAIN HEALTHCARE PROGRAM ELIGIBILITY
Sec. 401. Modification of calculation of modified adjusted gross income
for determining certain healthcare program eligibility.
TITLE V--BUDGETARY EFFECTS
Sec. 501. Statutory Pay-As-You-Go Act of 2010.
TITLE II--VOW TO HIRE HEROES
SEC. 201. SHORT TITLE.
This title may be cited as the ``VOW to Hire Heroes Act of
2011''.
Subtitle A--Retraining Veterans
SEC. 211. VETERANS RETRAINING ASSISTANCE PROGRAM.
(a) Program Authorized.--
(1) In general.--Not later than July 1, 2012, the Secretary
of Veterans Affairs shall, in collaboration with the
Secretary of Labor, establish and commence a program of
retraining assistance for eligible veterans.
(2) Number of eligible veterans.--The number of unique
eligible veterans who participate in the program established
under paragraph (1) may not exceed--
(A) 45,000 during fiscal year 2012; and
(B) 54,000 during the period beginning October 1, 2012, and
ending March 31, 2014.
(b) Retraining Assistance.--Except as provided by
subsection (k), each veteran who participates in the program
established under subsection (a)(1) shall be entitled to up
to 12 months of retraining assistance provided by the
Secretary of Veterans Affairs. Such retraining assistance may
only be used by the veteran to pursue a program of education
(as such term is defined in section 3452(b) of title 38,
United States Code) for training, on a full-time basis,
that--
(1) is approved under chapter 36 of such title;
(2) is offered by a community college or technical school;
(3) leads to an associate degree or a certificate (or other
similar evidence of the completion of the program of
education or training);
(4) is designed to provide training for a high-demand
occupation, as determined by the Commissioner of Labor
Statistics; and
(5) begins on or after July 1, 2012.
(c) Monthly Certification.--Each veteran who participates
in the program established under subsection (a)(1) shall
certify to the Secretary of Veterans Affairs the enrollment
of the veteran in a program of education described in
subsection (b) for each month in which the veteran
participates in the program.
(d) Amount of Assistance.--The monthly amount of the
retraining assistance payable under this section is the
amount in effect under section 3015(a)(1) of title 38, United
States Code.
(e) Eligibility.--
(1) In general.--For purposes of this section, an eligible
veteran is a veteran who--
(A) as of the date of the submittal of the application for
assistance under this section, is at least 35 years of age
but not more than 60 years of age;
(B) was last discharged from active duty service in the
Armed Forces under conditions other than dishonorable;
(C) as of the date of the submittal of the application for
assistance under this section, is unemployed;
(D) as of the date of the submittal of the application for
assistance under this section, is not eligible to receive
educational assistance under chapter 30, 31, 32, 33, or 35 of
title 38, United States Code, or chapter 1606 or 1607 of
title 10, United States Code;
(E) is not in receipt of compensation for a service-
connected disability rated totally disabling by reason of
unemployability;
(F) was not and is not enrolled in any Federal or State job
training program at any time during the 180-day period ending
on the date of the submittal of the application for
assistance under this section; and
(G) by not later than October 1, 2013, submits to the
Secretary of Labor an application for assistance under this
section containing such information and assurances as that
Secretary may require.
(2) Determination of eligibility.--
(A) Determination by secretary of labor.--
(i) In general.--For each application for assistance under
this section received by the Secretary of Labor from an
applicant, the Secretary of Labor shall determine whether the
applicant is eligible for such assistance under subparagraphs
(A), (C), (F), and (G) of paragraph (1).
(ii) Referral to secretary of veterans affairs.--If the
Secretary of Labor determines under clause (i) that an
applicant is eligible for assistance under this section, the
Secretary of Labor shall forward the application of such
applicant to the Secretary of Veterans Affairs in accordance
with the terms of the agreement required by subsection (h).
(B) Determination by secretary of veterans affairs.--For
each application relating to an applicant received by the
Secretary of Veterans Affairs under subparagraph (A)(ii), the
Secretary of Veterans Affairs shall determine under
subparagraphs (B), (D), and (E) of paragraph (1) whether such
applicant is eligible for assistance under this section.
(f) Employment Assistance.--For each veteran who
participates in the program established under subsection
(a)(1), the Secretary of Labor shall contact such veteran not
later than 30 days after the date on which the veteran
completes, or terminates participation in, such program to
facilitate employment of such veteran and availability or
provision of employment placement services to such veteran.
(g) Charging of Assistance Against Other Entitlement.--
Assistance provided under this section shall be counted
against the aggregate period for which section 3695 of title
38, United States Code, limits the individual's receipt of
educational assistance under laws administered by the
Secretary of Veterans Affairs.
(h) Joint Agreement.--
(1) In general.--The Secretary of Veterans Affairs and the
Secretary of Labor shall enter into an agreement to carry out
this section.
(2) Appeals process.--The agreement required by paragraph
(1) shall include establishment of a process for resolving
disputes relating to and appeals of decisions of the
Secretaries under subsection (e)(2).
(i) Report.--
(1) In general.--Not later than July 1, 2014, the Secretary
of Veterans Affairs shall, in collaboration with the
Secretary of Labor, submit to the appropriate committees of
Congress a report on the retraining assistance provided under
this section.
(2) Elements.--The report required by paragraph (1) shall
include the following:
(A) The total number of--
(i) eligible veterans who participated; and
(ii) associates degrees or certificates awarded (or other
similar evidence of the completion of the program of
education or training earned).
(B) Data related to the employment status of eligible
veterans who participated.
(j) Funding.--Payments under this section shall be made
from amounts appropriated to or otherwise made available to
the Department of Veterans Affairs for the payment of
readjustment benefits. Not more than $2,000,000 shall be made
available from such amounts for information technology
expenses (not including personnel costs) associated with the
administration of the program established under subsection
(a)(1).
(k) Termination of Authority.--The authority to make
payments under this section shall terminate on March 31,
2014.
(l) Appropriate Committees of Congress Defined.--In this
section, the term ``appropriate committees of Congress''
means--
(1) the Committee on Veterans' Affairs and the Committee on
Health, Education, Labor, and Pension of the Senate; and
(2) the Committee on Veterans' Affairs and the Committee on
Education and the Workforce of the House of Representatives.
Subtitle B--Improving the Transition Assistance Program
SEC. 221. MANDATORY PARTICIPATION OF MEMBERS OF THE ARMED
FORCES IN THE TRANSITION ASSISTANCE PROGRAM OF
DEPARTMENT OF DEFENSE.
(a) In General.--Subsection (c) of section 1144 of title
10, United States Code, is amended to read as follows:
``(c) Participation.--(1) Except as provided in paragraph
(2), the Secretary of Defense and the Secretary of Homeland
Security shall require the participation in the program
carried out under this section of the members eligible for
assistance under the program.
``(2) The Secretary of Defense and the Secretary of
Homeland Security may, under regulations such Secretaries
shall prescribe, waive the participation requirement of
paragraph (1) with respect to--
``(A) such groups or classifications of members as the
Secretaries determine, after consultation with the Secretary
of Labor and the Secretary of Veterans Affairs, for whom
participation is not and would not be of assistance to such
members based on the Secretaries' articulable justification
that there is extraordinarily high reason to believe the
exempted members are unlikely to face major readjustment,
health care, employment, or other challenges associated with
transition to civilian life; and
[[Page S7341]]
``(B) individual members possessing specialized skills who,
due to unavoidable circumstances, are needed to support a
unit's imminent deployment.''.
(b) Required Use of Employment Assistance, Job Training
Assistance, and Other Transitional Services in Preseparation
Counseling.--Section 1142(a)(2) of such title is amended by
striking ``may'' and inserting ``shall''.
(c) Effective Date.--The amendments made by subsections (a)
and (b) shall take effect on the date that is 1 year after
the date of the enactment of this Act.
SEC. 222. INDIVIDUALIZED ASSESSMENT FOR MEMBERS OF THE ARMED
FORCES UNDER TRANSITION ASSISTANCE ON
EQUIVALENCE BETWEEN SKILLS DEVELOPED IN
MILITARY OCCUPATIONAL SPECIALTIES AND
QUALIFICATIONS REQUIRED FOR CIVILIAN EMPLOYMENT
WITH THE PRIVATE SECTOR.
(a) Study on Equivalence Required.--
(1) In general.--The Secretary of Labor shall, in
consultation with the Secretary of Defense and the Secretary
of Veterans Affairs, enter into a contract with a qualified
organization to conduct a study to identify any equivalences
between the skills developed by members of the Armed Forces
through various military occupational specialties (MOS),
successful completion of resident training courses, attaining
various military ranks or rates, or other military
experiences and the qualifications required for various
positions of civilian employment in the private sector.
(2) Cooperation of federal agencies.--The departments and
agencies of the Federal Government, including the Office of
Personnel Management, the General Services Administration,
the Government Accountability Office, the Department of
Education, and other appropriate departments and agencies,
shall cooperate with the contractor under paragraph (1) to
conduct the study required under that paragraph.
(3) Report.--Upon completion of the study conducted under
paragraph (1), the contractor under that paragraph shall
submit to the Secretary of Defense, the Secretary of Veterans
Affairs, and the Secretary of Labor a report setting forth
the results of the study. The report shall include such
information as the Secretaries shall specify in the contract
under paragraph (1) for purposes of this section.
(4) Transmittal to congress.--The Secretary of Labor shall
transmit to the appropriate committees of Congress the report
submitted under paragraph (3), together with such comments on
the report as the Secretary considers appropriate.
(5) Appropriate committees of congress defined.--In this
subsection, the term ``appropriate committees of Congress''
means--
(A) the Committee on Veterans' Affairs, the Committee on
Armed Services, and the Committee on Health, Education,
Labor, and Pension of the Senate; and
(B) the Committee on Veterans' Affairs, the Committee on
Armed Services, and the Committee on Education and the
Workforce of the House of Representatives.
(b) Publication.--The secretaries described in subsection
(a)(1) shall ensure that the equivalences identified under
subsection (a)(1) are--
(1) made publicly available on an Internet website; and
(2) regularly updated to reflect the most recent findings
of the secretaries with respect to such equivalences.
(c) Individualized Assessment of Civilian Positions
Available Through Military Experiences.--The Secretary of
Defense shall ensure that each member of the Armed Forces who
is participating in the Transition Assistance Program (TAP)
of the Department of Defense receives, as part of such
member's participation in that program, an individualized
assessment of the various positions of civilian employment in
the private sector for which such member may be qualified as
a result of the skills developed by such member through
various military occupational specialties (MOS), successful
completion of resident training courses, attaining various
military ranks or rates, or other military experiences. The
assessment shall be performed using the results of the study
conducted under subsection (a) and such other information as
the Secretary of Defense, in consultation with the Secretary
of Veterans Affairs and the Secretary of Labor, considers
appropriate for that purpose.
(d) Further Use in Employment-Related Transition
Assistance.--
(1) Transmittal of assessment.--The Secretary of Defense
shall make the individualized assessment provided a member
under subsection (a) available electronically to the
Secretary of Veterans Affairs and the Secretary of Labor.
(2) Use in assistance.--The Secretary of Veterans Affairs
and the Secretary of Labor may use an individualized
assessment with respect to an individual under paragraph (1)
for employment-related assistance in the transition from
military service to civilian life provided the individual by
such Secretary and to otherwise facilitate and enhance the
transition of the individual from military service to
civilian life.
(e) Effective Date.--This section shall take effect on the
date that is one year after the date of the enactment of this
Act.
SEC. 223. TRANSITION ASSISTANCE PROGRAM CONTRACTING.
(a) Transition Assistance Program Contracting.--
(1) In general.--Section 4113 of title 38, United States
Code, is amended to read as follows:
``Sec. 4113. Transition Assistance Program personnel
``(a) Requirement to Contract.--In accordance with section
1144 of title 10, the Secretary shall enter into a contract
with an appropriate private entity or entities to provide the
functions described in subsection (b) at all locations where
the program described in such section is carried out.
``(b) Functions.--Contractors under subsection (a) shall
provide to members of the Armed Forces who are being
separated from active duty (and the spouses of such members)
the services described in section 1144(a)(1) of title 10,
including the following:
``(1) Counseling.
``(2) Assistance in identifying employment and training
opportunities and help in obtaining such employment and
training.
``(3) Assessment of academic preparation for enrollment in
an institution of higher learning or occupational training.
``(4) Other related information and services under such
section.
``(5) Such other services as the Secretary considers
appropriate.''.
(2) Clerical amendment.--The table of sections at the
beginning of chapter 41 of title 38, United States Code, is
amended by striking the item relating to section 4113 and
inserting the following new item:
``4113. Transition Assistance Program personnel.''.
(b) Deadline for Implementation.--The Secretary of Labor
shall enter into the contract required by section 4113 of
title 38, United States Code, as added by subsection (a), not
later than two years after the date of the enactment of this
Act.
SEC. 224. CONTRACTS WITH PRIVATE ENTITIES TO ASSIST IN
CARRYING OUT TRANSITION ASSISTANCE PROGRAM OF
DEPARTMENT OF DEFENSE.
Section 1144(d) of title 10, United States Code, is
amended--
(1) in paragraph (5), by striking ``public or private
entities; and'' and inserting ``public entities;'';
(2) by redesignating paragraph (6) as paragraph (7); and
(3) by inserting after paragraph (5), the following new
paragraph (6):
``(6) enter into contracts with private entities,
particularly with qualified private entities that have
experience with instructing members of the armed forces
eligible for assistance under the program carried out under
this section on--
``(A) private sector culture, resume writing, career
networking, and training on job search technologies;
``(B) academic readiness and educational opportunities; or
``(C) other relevant topics; and''.
SEC. 225. IMPROVED ACCESS TO APPRENTICESHIP PROGRAMS FOR
MEMBERS OF THE ARMED FORCES WHO ARE BEING
SEPARATED FROM ACTIVE DUTY OR RETIRED.
Section 1144 of title 10, United States Code, is amended by
adding at the end the following new subsection:
``(e) Participation in Apprenticeship Programs.--As part of
the program carried out under this section, the Secretary of
Defense and the Secretary of Homeland Security may permit a
member of the armed forces eligible for assistance under the
program to participate in an apprenticeship program
registered under the Act of August 16, 1937 (commonly known
as the `National Apprenticeship Act'; 50 Stat. 664, chapter
663; 29 U.S.C. 50 et seq.), or a pre-apprenticeship program
that provides credit toward a program registered under such
Act, that provides members of the armed forces with the
education, training, and services necessary to transition to
meaningful employment that leads to economic self-
sufficiency.''.
SEC. 226. COMPTROLLER GENERAL REVIEW.
Not later than two years after the date of the enactment of
this Act, the Comptroller General of the United States shall
conduct a review of the Transition Assistance Program (TAP)
and submit to Congress a report on the results of the review
and any recommendations of the Comptroller General for
improving the program.
Subtitle C--Improving the Transition of Veterans to Civilian Employment
SEC. 231. TWO-YEAR EXTENSION OF AUTHORITY OF SECRETARY OF
VETERANS AFFAIRS TO PROVIDE REHABILITATION AND
VOCATIONAL BENEFITS TO MEMBERS OF THE ARMED
FORCES WITH SEVERE INJURIES OR ILLNESSES.
Section 1631(b)(2) of the Wounded Warrior Act (title XVI of
Public Law 110-181; 10 U.S.C. 1071 note) is amended by
striking ``December 31, 2012'' and inserting ``December 31,
2014''.
SEC. 232. EXPANSION OF AUTHORITY OF SECRETARY OF VETERANS
AFFAIRS TO PAY EMPLOYERS FOR PROVIDING ON-JOB
TRAINING TO VETERANS WHO HAVE NOT BEEN
REHABILITATED TO POINT OF EMPLOYABILITY.
Section 3116(b)(1) of title 38, United States Code, is
amended by striking ``who have been rehabilitated to the
point of employability''.
SEC. 233. TRAINING AND REHABILITATION FOR VETERANS WITH
SERVICE-CONNECTED DISABILITIES WHO HAVE
EXHAUSTED RIGHTS TO UNEMPLOYMENT BENEFITS UNDER
STATE LAW.
(a) Entitlement to Additional Rehabilitation Programs.--
(1) In general.--Section 3102 of title 38, United States
Code, is amended--
(A) in the matter before paragraph (1), by striking ``A
person'' and inserting the following:
``(a) In General.--A person''; and
(B) by adding at the end the following new paragraph:
``(b) Additional Rehabilitation Programs for Persons Who
Have Exhausted Rights to Unemployment Benefits Under State
Law.--(1) Except as provided in paragraph (4), a person who
has completed a rehabilitation program
[[Page S7342]]
under this chapter shall be entitled to an additional
rehabilitation program under the terms and conditions of this
chapter if--
``(A) the person is described by paragraph (1) or (2) of
subsection (a); and
``(B) the person--
``(i) has exhausted all rights to regular compensation
under the State law or under Federal law with respect to a
benefit year;
``(ii) has no rights to regular compensation with respect
to a week under such State or Federal law; and
``(iii) is not receiving compensation with respect to such
week under the unemployment compensation law of Canada; and
``(C) begins such additional rehabilitation program within
six months of the date of such exhaustion.
``(2) For purposes of paragraph (1)(B)(i), a person shall
be considered to have exhausted such person's rights to
regular compensation under a State law when--
``(A) no payments of regular compensation can be made under
such law because such person has received all regular
compensation available to such person based on employment or
wages during such person's base period; or
``(B) such person's rights to such compensation have been
terminated by reason of the expiration of the benefit year
with respect to which such rights existed.
``(3) In this subsection, the terms `compensation',
`regular compensation', `benefit year', `State', `State law',
and `week' have the respective meanings given such terms
under section 205 of the Federal-State Extended Unemployment
Compensation Act of 1970 (26 U.S.C. 3304 note).
``(4) No person shall be entitled to an additional
rehabilitation program under paragraph (1) from whom the
Secretary receives an application therefor after March 31,
2014.''.
(2) Duration of additional rehabilitation program.--Section
3105(b) of such title is amended--
(A) by striking ``Except as provided in subsection (c) of
this section,'' and inserting ``(1) Except as provided in
paragraph (2) and in subsection (c),''; and
(B) by adding at the end the following new paragraph:
``(2) The period of a vocational rehabilitation program
pursued by a veteran under section 3102(b) of this title
following a determination of the current reasonable
feasibility of achieving a vocational goal may not exceed 12
months.''.
(b) Extension of Period of Eligibility.--Section 3103 of
such title is amended--
(1) in subsection (a), by striking ``in subsection (b),
(c), or (d)'' and inserting ``in subsection (b), (c), (d), or
(e)'';
(2) by redesignating subsection (e) as subsection (f); and
(3) by inserting after subsection (d) the following new
subsection (e):
``(e)(1) The limitation in subsection (a) shall not apply
to a rehabilitation program described in paragraph (2).
``(2) A rehabilitation program described in this paragraph
is a rehabilitation program pursued by a veteran under
section 3102(b) of this title.''.
(c) Effective Date.--The amendments made by subsections (a)
and (b) shall take effect on June 1, 2012, and shall apply
with respect to rehabilitation programs beginning after such
date.
(d) Comptroller General Review.--Not later than two years
after the date of the enactment of this Act, the Comptroller
General of the United States shall--
(1) conduct a review of the training and rehabilitation
under chapter 31 of title 38, United States Code; and
(2) submit to Congress a report on the findings of the
Comptroller General with respect to the review and any
recommendations of the Comptroller General for improving such
training and rehabilitation.
SEC. 234. COLLABORATIVE VETERANS' TRAINING, MENTORING, AND
PLACEMENT PROGRAM.
(a) In General.--Chapter 41 of title 38, United States
Code, is amended by inserting after section 4104 the
following new section:
``Sec. 4104A. Collaborative veterans' training, mentoring,
and placement program
``(a) Grants.--The Secretary shall award grants to eligible
nonprofit organizations to provide training and mentoring for
eligible veterans who seek employment. The Secretary shall
award the grants to not more than three organizations, for
periods of two years.
``(b) Collaboration and Facilitation.--The Secretary shall
ensure that the recipients of the grants--
``(1) collaborate with--
``(A) the appropriate disabled veterans' outreach
specialists (in carrying out the functions described in
section 4103A(a)) and the appropriate local veterans'
employment representatives (in carrying out the functions
described in section 4104); and
``(B) the appropriate State boards and local boards (as
such terms are defined in section 101 of the Workforce
Investment Act of 1998 (29 U.S.C. 2801)) for the areas to be
served by recipients of the grants; and
``(2) based on the collaboration, facilitate the placement
of the veterans that complete the training in meaningful
employment that leads to economic self-sufficiency.
``(c) Application.--To be eligible to receive a grant under
this section, a nonprofit organization shall submit an
application to the Secretary at such time, in such manner,
and containing such information as the Secretary may require.
At a minimum, the information shall include--
``(1) information describing how the organization will--
``(A) collaborate with disabled veterans' outreach
specialists and local veterans' employment representatives
and the appropriate State boards and local boards (as such
terms are defined in section 101 of the Workforce Investment
Act of 1998 (29 U.S.C. 2801));
``(B) based on the collaboration, provide training that
facilitates the placement described in subsection (b)(2); and
``(C) make available, for each veteran receiving the
training, a mentor to provide career advice to the veteran
and assist the veteran in preparing a resume and developing
job interviewing skills; and
``(2) an assurance that the organization will provide the
information necessary for the Secretary to prepare the
reports described in subsection (d).
``(d) Reports.--(1) Not later than six months after the
date of the enactment of the VOW to Hire Heroes Act of 2011,
the Secretary shall prepare and submit to the appropriate
committees of Congress a report that describes the process
for awarding grants under this section, the recipients of the
grants, and the collaboration described in subsections (b)
and (c).
``(2) Not later than 18 months after the date of enactment
of the VOW to Hire Heroes Act of 2011, the Secretary shall--
``(A) conduct an assessment of the performance of the grant
recipients, disabled veterans' outreach specialists, and
local veterans' employment representatives in carrying out
activities under this section, which assessment shall include
collecting information on the number of--
``(i) veterans who applied for training under this section;
``(ii) veterans who entered the training;
``(iii) veterans who completed the training;
``(iv) veterans who were placed in meaningful employment
under this section; and
``(v) veterans who remained in such employment as of the
date of the assessment; and
``(B) submit to the appropriate committees of Congress a
report that includes--
``(i) a description of how the grant recipients used the
funds made available under this section;
``(ii) the results of the assessment conducted under
subparagraph (A); and
``(iii) the recommendations of the Secretary as to whether
amounts should be appropriated to carry out this section for
fiscal years after 2013.
``(e) Authorization of Appropriations.--There is authorized
to be appropriated to carry out this section $4,500,000 for
the period consisting of fiscal years 2012 and 2013.
``(f) Definitions.--In this section--
``(1) the term `appropriate committees of Congress' means--
``(A) the Committee on Veterans' Affairs and the Committee
on Health, Education, Labor, and Pension of the Senate; and
``(B) the Committee on Veterans' Affairs and the Committee
on Education and Workforce of the House of Representatives;
and
``(2) the term `nonprofit organization' means an
organization that is described in section 501(c)(3) of the
Internal Revenue Code of 1986 and that is exempt from
taxation under section 501(a) of such Code.''.
(b) Conforming Amendment.--Section 4103A(a) of title 38,
United States Code, is amended--
(1) in paragraph (1), by inserting ``and facilitate
placements'' after ``intensive services''; and
(2) by adding at the end the following:
``(3) In facilitating placement of a veteran under this
program, a disabled veterans' outreach program specialist
shall help to identify job opportunities that are appropriate
for the veteran's employment goals and assist that veteran in
developing a cover letter and resume that are targeted for
those particular jobs.''.
(c) Clerical Amendment.--The table of sections at the
beginning of chapter 41 of such title is amended by inserting
after the item relating to section 4104 the following new
item:
``4104A. Collaborative veterans' training, mentoring, and placement
program.''.
SEC. 235. APPOINTMENT OF HONORABLY DISCHARGED MEMBERS AND
OTHER EMPLOYMENT ASSISTANCE.
(a) Appointments to Competitive Service Positions.--
(1) In general.--Chapter 21 of title 5, United States Code,
is amended by inserting after section 2108 the following:
``Sec. 2108a. Treatment of certain individuals as veterans,
disabled veterans, and preference eligibles
``(a) Veteran.--
``(1) In general.--Except as provided under paragraph (3),
an individual shall be treated as a veteran defined under
section 2108(1) for purposes of making an appointment in the
competitive service, if the individual--
``(A) meets the definition of a veteran under section
2108(1), except for the requirement that the individual has
been discharged or released from active duty in the armed
forces under honorable conditions; and
``(B) submits a certification described under paragraph (2)
to the Federal officer making the appointment.
``(2) Certification.--A certification referred to under
paragraph (1) is a certification that the individual is
expected to be discharged or released from active duty in the
armed forces under honorable conditions not later than 120
days after the date of the submission of the certification.
``(b) Disabled Veteran.--
``(1) In general.--Except as provided under paragraph (3),
an individual shall be treated as a disabled veteran defined
under section 2108(2) for purposes of making an appointment
in the competitive service, if the individual--
``(A) meets the definition of a disabled veteran under
section 2108(2), except for the requirement that the
individual has been separated from active duty in the armed
forces under honorable conditions; and
``(B) submits a certification described under paragraph (2)
to the Federal officer making the appointment.
[[Page S7343]]
``(2) Certification.--A certification referred to under
paragraph (1) is a certification that the individual is
expected to be separated from active duty in the armed forces
under honorable conditions not later than 120 days after the
date of the submission of the certification.
``(c) Preference Eligible.--Subsections (a) and (b) shall
apply with respect to determining whether an individual is a
preference eligible under section 2108(3) for purposes of
making an appointment in the competitive service.''.
(2) Technical and conforming amendments.--
(A) Definitions.--Section 2108 of title 5, United States
Code, is amended--
(i) in paragraph (1), in the matter following subparagraph
(D), by inserting ``, except as provided under section
2108a,'' before ``who has been'';
(ii) in paragraph (2), by inserting ``(except as provided
under section 2108a)'' before ``has been separated''; and
(iii) in paragraph (3), in the matter preceding
subparagraph (A), by inserting ``or section 2108a(c)'' after
``paragraph (4) of this section''.
(B) Table of sections.--The table of sections for chapter
21 of title 5, United States Code, is amended by adding after
the item relating to section 2108 the following:
``2108a. Treatment of certain individuals as veterans, disabled
veterans, and preference eligibles.''.
(b) Employment Assistance: Other Federal Agencies.--
(1) Definitions.--In this subsection--
(A) the term ``agency'' has the meaning given the term
``Executive agency'' in section 105 of title 5, United States
Code; and
(B) the term ``veteran'' has the meaning given that term in
section 101 of title 38, United States Code.
(2) Responsibilities of office of personnel management.--
The Director of the Office of Personnel Management shall--
(A) designate agencies that shall establish a program to
provide employment assistance to members of the Armed Forces
who are being separated from active duty in accordance with
paragraph (3); and
(B) ensure that the programs established under this
subsection are coordinated with the Transition Assistance
Program (TAP) of the Department of Defense.
(3) Elements of program.--The head of each agency
designated under paragraph (2)(A), in consultation with the
Director of the Office of Personnel Management, and acting
through the Veterans Employment Program Office of the agency
established under Executive Order 13518 (74 Fed. Reg. 58533;
relating to employment of veterans in the Federal
Government), or any successor thereto, shall--
(A) establish a program to provide employment assistance to
members of the Armed Forces who are being separated from
active duty, including assisting such members in seeking
employment with the agency;
(B) provide such members with information regarding the
program of the agency established under subparagraph (A); and
(C) promote the recruiting, hiring, training and
development, and retention of such members and veterans by
the agency.
(4) Other office.--If an agency designated under paragraph
(2)(A) does not have a Veterans Employment Program Office,
the head of the agency, in consultation with the Director of
the Office of Personnel Management, shall select an
appropriate office of the agency to carry out the
responsibilities of the agency under paragraph (3).
SEC. 236. DEPARTMENT OF DEFENSE PILOT PROGRAM ON WORK
EXPERIENCE FOR MEMBERS OF THE ARMED FORCES ON
TERMINAL LEAVE.
(a) In General.--The Secretary of Defense may establish a
pilot program to assess the feasibility and advisability of
providing to members of the Armed Forces on terminal leave
work experience with civilian employees and contractors of
the Department of Defense to facilitate the transition of the
individuals from service in the Armed Forces to employment in
the civilian labor market.
(b) Duration.--The pilot program shall be carried out
during the two-year period beginning on the date of the
commencement of the pilot program.
(c) Report.--Not later than 540 days after the date of the
commencement of the pilot program, the Secretary shall submit
to the Committee on Armed Services and the Committee on
Veterans' Affairs of the Senate and the Committee on Armed
Services and the Committee on Veterans' Affairs of the House
of Representatives an interim report on the pilot program
that includes the findings of the Secretary with respect to
the feasibility and advisability of providing covered
individuals with work experience as described in subsection
(a).
SEC. 237. ENHANCEMENT OF DEMONSTRATION PROGRAM ON
CREDENTIALING AND LICENSING OF VETERANS.
(a) In General.--Section 4114 of title 38, United States
Code, is amended--
(1) in subsection (a), by striking ``may'' and inserting
``shall'';
(2) in subsection (b)--
(A) in paragraph (1)--
(i) by striking ``Assistant Secretary shall'' and inserting
``Assistant Secretary for Veterans' Employment and Training
shall, in consultation with the Assistant Secretary for
Employment and Training,'';
(ii) by striking ``not less than 10 military'' and
inserting ``not more than five military''; and
(iii) by inserting ``for Veterans' Employment and
Training'' after ``selected by the Assistant Secretary''; and
(B) in paragraph (2), by striking ``consult with
appropriate Federal, State, and industry officials to'' and
inserting ``enter into a contract with an appropriate entity
representing a coalition of State governors to consult with
appropriate Federal, State, and industry officials and''; and
(3) by striking subsections (d) through (h) and inserting
the following:
``(d) Period of Project.--The period during which the
Assistant Secretary shall carry out the demonstration project
under this section shall be the two-year period beginning on
the date of the enactment of the VOW to Hire Heroes Act of
2011.''.
(b) Study Comparing Costs Incurred by Secretary of Defense
for Training for Military Occupational Specialties Without
Credentialing or Licensing With Costs Incurred by Secretary
of Veterans Affairs and Secretary of Labor in Providing
Employment-related Assistance.--
(1) In general.--Not later than 180 days after the
conclusion of the period described in subsection (d) of
section 4114 of title 38, United States Code, as added by
subsection (a), the Assistant Secretary of Labor of Veterans'
Employment and Training shall, in consultation with the
Secretary of Defense and the Secretary of Veterans Affairs,
complete a study comparing the costs incurred by the
Secretary of Defense in training members of the Armed Forces
for the military occupational specialties selected by the
Assistant Secretary of Labor of Veterans' Employment and
Training pursuant to the demonstration project provided for
in such section 4114, as amended by subsection (a), with the
costs incurred by the Secretary of Veterans Affairs and the
Secretary of Labor in providing employment-related assistance
to veterans who previously held such military occupational
specialties, including--
(A) providing educational assistance under laws
administered by the Secretary of Veterans Affairs to veterans
to obtain credentialing and licensing for civilian
occupations that are similar to such military occupational
specialties;
(B) providing assistance to unemployed veterans who, while
serving in the Armed Forces, were trained in a military
occupational specialty; and
(C) providing vocational training or counseling to veterans
described in subparagraph (B).
(2) Report.--
(A) In general.--Not later than 180 days after the
conclusion of the period described in subsection (d) of
section 4114 of title 38, United States Code, as added by
subsection (a), the Assistant Secretary of Labor of Veterans'
Employment and Training shall submit to Congress a report on
the study carried out under paragraph (1).
(B) Elements.--The report required by subparagraph (A)
shall include the following:
(i) The findings of the Assistant Secretary with respect to
the study required by paragraph (1).
(ii) A detailed description of the costs compared under the
study required by paragraph (1).
SEC. 238. INCLUSION OF PERFORMANCE MEASURES IN ANNUAL REPORT
ON VETERAN JOB COUNSELING, TRAINING, AND
PLACEMENT PROGRAMS OF THE DEPARTMENT OF LABOR.
Section 4107(c) of title 38, United States Code, is
amended--
(1) in paragraph (2), by striking ``clause (1)'' and
inserting ``paragraph (1)'';
(2) in paragraph (5), by striking ``and'' at the end;
(3) in paragraph (6), by striking the period and inserting
``; and''; and
(4) by adding at the end the following new paragraph:
``(7) performance measures for the provision of assistance
under this chapter, including--
``(A) the percentage of participants in programs under this
chapter who find employment before the end of the first 90-
day period following their completion of the program;
``(B) the percentage of participants described in
subparagraph (A) who are employed during the first 180-day
period following the period described in such subparagraph;
``(C) the median earnings of participants described in
subparagraph (A) during the period described in such
subparagraph;
``(D) the median earnings of participants described in
subparagraph (B) during the period described in such
subparagraph; and
``(E) the percentage of participants in programs under this
chapter who obtain a certificate, degree, diploma, licensure,
or industry-recognized credential relating to the program in
which they participated under this chapter during the third
90-day period following their completion of the program.''.
SEC. 239. CLARIFICATION OF PRIORITY OF SERVICE FOR VETERANS
IN DEPARTMENT OF LABOR JOB TRAINING PROGRAMS.
Section 4215 of title 38, United States Code, is amended--
(1) in subsection (a)(3), by adding at the end the
following: ``Such priority includes giving access to such
services to a covered person before a non-covered person or,
if resources are limited, giving access to such services to a
covered person instead of a non-covered person.''; and
(2) by amending subsection (d) to read as follows:
``(d) Addition to Annual Report.--(1) In the annual report
required under section 4107(c) of this title for the program
year beginning in 2003 and each subsequent program year, the
Secretary of Labor shall evaluate whether covered persons are
receiving priority of service and are being fully served by
qualified job training programs. Such evaluation shall
include--
``(A) an analysis of the implementation of providing such
priority at the local level;
``(B) whether the representation of veterans in such
programs is in proportion to the incidence
[[Page S7344]]
of representation of veterans in the labor market, including
within groups that the Secretary may designate for priority
under such programs, if any; and
``(C) performance measures, as determined by the Secretary,
to determine whether veterans are receiving priority of
service and are being fully served by qualified job training
programs.
``(2) The Secretary may not use the proportion of
representation of veterans described in subparagraph (B) of
paragraph (1) as the basis for determining under such
paragraph whether veterans are receiving priority of service
and are being fully served by qualified job training
programs.''.
SEC. 240. EVALUATION OF INDIVIDUALS RECEIVING TRAINING AT THE
NATIONAL VETERANS' EMPLOYMENT AND TRAINING
SERVICES INSTITUTE.
(a) In General.--Section 4109 of title 38, United States
Code, is amended by adding at the end the following new
subsection:
``(d)(1) The Secretary shall require that each disabled
veterans' outreach program specialist and local veterans'
employment representative who receives training provided by
the Institute, or its successor, is given a final examination
to evaluate the specialist's or representative's performance
in receiving such training.
``(2) The results of such final examination shall be
provided to the entity that sponsored the specialist or
representative who received the training.''.
(b) Effective Date.--Subsection (d) of section 4109 of
title 38, United States Code, as added by subsection (a),
shall apply with respect to training provided by the National
Veterans' Employment and Training Services Institute that
begins on or after the date that is 180 days after the date
of the enactment of this Act.
SEC. 241. REQUIREMENTS FOR FULL-TIME 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:
``(d) Additional Requirement for Full-time Employees.--(1)
A full-time disabled veterans' outreach program specialist
shall perform only duties related to meeting the employment
needs of eligible veterans, as described in subsection (a),
and shall not perform other non-veteran-related duties that
detract from the specialist's ability to perform the
specialist's duties related to meeting the employment needs
of eligible veterans.
``(2) The Secretary shall conduct regular audits to ensure
compliance with paragraph (1). If, on the basis of such an
audit, the Secretary determines that a State is not in
compliance with paragraph (1), the Secretary may reduce the
amount of a grant made to the State under section 4102A(b)(5)
of this title.''.
(b) Local Veterans' Employment Representatives.--Section
4104 of such title is amended--
(1) by redesignating subsection (e) as subsection (f); and
(2) by inserting after subsection (d) the following new
subsection (e):
``(e) Additional Requirements for Full-time Employees.--(1)
A full-time local veterans' employment representative shall
perform only duties related to the employment, training, and
placement services under this chapter, and shall not perform
other non-veteran-related duties that detract from the
representative's ability to perform the representative's
duties related to employment, training, and placement
services under this chapter.
``(2) The Secretary shall conduct regular audits to ensure
compliance with paragraph (1). If, on the basis of such an
audit, the Secretary determines that a State is not in
compliance with paragraph (1), the Secretary may reduce the
amount of a grant made to the State under section 4102A(b)(5)
of this title.''.
(c) Consolidation.--Section 4102A of such title is amended
by adding at the end the following new subsection:
``(h) Consolidation of Disabled Veterans' Outreach Program
Specialists and Veterans' Employment Representatives.--The
Secretary may allow the Governor of a State receiving funds
under subsection (b)(5) to support specialists and
representatives as described in such subsection to
consolidate the functions of such specialists and
representatives if--
``(1) the Governor determines, and the Secretary concurs,
that such consolidation--
``(A) promotes a more efficient administration of services
to veterans with a particular emphasis on services to
disabled veterans; and
``(B) does not hinder the provision of services to veterans
and employers; and
``(2) the Governor submits to the Secretary a proposal
therefor at such time, in such manner, and containing such
information as the Secretary may require.''.
Subtitle D--Improvements to Uniformed Services Employment and
Reemployment Rights
SEC. 251. CLARIFICATION OF BENEFITS OF EMPLOYMENT COVERED
UNDER USERRA.
Section 4303(2) of title 38, United States Code, is amended
by inserting ``the terms, conditions, or privileges of
employment, including'' after ``means''.
Subtitle E--Other Matters
SEC. 261. RETURNING HEROES AND WOUNDED WARRIORS WORK
OPPORTUNITY TAX CREDITS.
(a) In General.--Paragraph (3) of section 51(b) of the
Internal Revenue Code of 1986 is amended by striking
``($12,000 per year in the case of any individual who is a
qualified veteran by reason of subsection (d)(3)(A)(ii))''
and inserting ``($12,000 per year in the case of any
individual who is a qualified veteran by reason of subsection
(d)(3)(A)(ii)(I), $14,000 per year in the case of any
individual who is a qualified veteran by reason of subsection
(d)(3)(A)(iv), and $24,000 per year in the case of any
individual who is a qualified veteran by reason of subsection
(d)(3)(A)(ii)(II))''.
(b) Returning Heroes Tax Credits.--Subparagraph (A) of
section 51(d)(3) of the Internal Revenue Code of 1986 is
amended--
(1) by striking ``or'' at the end of clause (i),
(2) by striking the period at the end of clause (ii)(II),
and
(3) by adding at the end the following new clauses:
``(iii) having aggregate periods of unemployment during the
1-year period ending on the hiring date which equal or exceed
4 weeks (but less than 6 months), or
``(iv) having aggregate periods of unemployment during the
1-year period ending on the hiring date which equal or exceed
6 months.''.
(c) Simplified Certification.--Paragraph (13) of section
51(d) of the Internal Revenue Code of 1986 is amended by
adding at the end the following new subparagraph:
``(D) Credit for unemployed veterans.--
``(i) In general.--Notwithstanding subparagraph (A), for
purposes of paragraph (3)(A)--
``(I) a veteran will be treated as certified by the
designated local agency as having aggregate periods of
unemployment meeting the requirements of clause (ii)(II) or
(iv) of such paragraph (whichever is applicable) if such
veteran is certified by such agency as being in receipt of
unemployment compensation under State or Federal law for not
less than 6 months during the 1-year period ending on the
hiring date, and
``(II) a veteran will be treated as certified by the
designated local agency as having aggregate periods of
unemployment meeting the requirements of clause (iii) of such
paragraph if such veteran is certified by such agency as
being in receipt of unemployment compensation under State or
Federal law for not less than 4 weeks (but less than 6
months) during the 1-year period ending on the hiring date.
``(ii) Regulatory authority.--The Secretary may provide
alternative methods for certification of a veteran as a
qualified veteran described in clause (ii)(II), (iii), or
(iv) of paragraph (3)(A), at the Secretary's discretion.''.
(d) Extension of Credit.--Subparagraph (B) of section
51(c)(4) of the Internal Revenue Code of 1986 is amended to
read as follows:
``(B) after--
``(i) December 31, 2012, in the case of a qualified
veteran, and
``(ii) December 31, 2011, in the case of any other
individual.''.
(e) Credit Made Available to Tax-Exempt Organizations in
Certain Circumstances.--
(1) In general.--Subsection (c) of section 52 of the
Internal Revenue Code of 1986 is amended--
(A) by inserting ``(1) In general.--'' before ``No
credit'', and
(B) by adding at the end the following new paragraph:
``(2) Credit Made Available to Qualified Tax-Exempt
Organizations Employing Qualified Veterans.--For credit
against payroll taxes for employment of qualified veterans by
qualified tax-exempt organizations, see section 3111(e).''.
(2) Credit allowable.--Section 3111 of such Code is amended
by adding at the end the following new subsection:
``(e) Credit for Employment of Qualified Veterans.--
``(1) In general.--If a qualified tax-exempt organization
hires a qualified veteran with respect to whom a credit would
be allowable under section 38 by reason of section 51 if the
organization were not a qualified tax-exempt organization,
then there shall be allowed as a credit against the tax
imposed by subsection (a) on wages paid with respect to
employment of all employees of the organization during the
applicable period an amount equal to the credit determined
under section 51 (after application of the modifications
under paragraph (3)) with respect to wages paid to such
qualified veteran during such period.
``(2) Overall limitation.--The aggregate amount allowed as
a credit under this subsection for all qualified veterans for
any period with respect to which tax is imposed under
subsection (a) shall not exceed the amount of the tax imposed
by subsection (a) on wages paid with respect to employment of
all employees of the organization during such period.
``(3) Modifications.--For purposes of paragraph (1),
section 51 shall be applied--
``(A) by substituting `26 percent' for `40 percent' in
subsection (a) thereof,
``(B) by substituting `16.25 percent' for `25 percent' in
subsection (i)(3)(A) thereof, and
``(C) by only taking into account wages paid to a qualified
veteran for services in furtherance of the activities related
to the purpose or function constituting the basis of the
organization's exemption under section 501.
``(4) Applicable period.--The term `applicable period'
means, with respect to any qualified veteran, the 1-year
period beginning with the day such qualified veteran begins
work for the organization.
``(5) Definitions.--For purposes of this subsection--
``(A) the term `qualified tax-exempt organization' means an
employer that is an organization described in section 501(c)
and exempt from taxation under section 501(a), and
``(B) the term `qualified veteran' has meaning given such
term by section 51(d)(3).''.
(3) Transfers to federal old-age and survivors insurance
trust fund.--There are hereby appropriated to the Federal
Old-Age and Survivors Trust Fund and the Federal Disability
Insurance Trust Fund established under section 201 of the
Social Security Act (42 U.S.C. 401)
[[Page S7345]]
amounts equal to the reduction in revenues to the Treasury by
reason of the amendments made by paragraphs (1) and (2).
Amounts appropriated by the preceding sentence shall be
transferred from the general fund at such times and in such
manner as to replicate to the extent possible the transfers
which would have occurred to such Trust Fund had such
amendments not been enacted.
(f) Treatment of Possessions.--
(1) Payments to possessions.--
(A) Mirror code possessions.--The Secretary of the Treasury
shall pay to each possession of the United States with a
mirror code tax system amounts equal to the loss to that
possession by reason of the amendments made by this section.
Such amounts shall be determined by the Secretary of the
Treasury based on information provided by the government of
the respective possession of the United States.
(B) Other possessions.--The Secretary of the Treasury shall
pay to each possession of the United States which does not
have a mirror code tax system the amount estimated by the
Secretary of the Treasury as being equal to the loss to that
possession that would have occurred by reason of the
amendments made by this section if a mirror code tax system
had been in effect in such possession. The preceding sentence
shall not apply with respect to any possession of the United
States unless such possession establishes to the satisfaction
of the Secretary that the possession has implemented (or, at
the discretion of the Secretary, will implement) an income
tax benefit which is substantially equivalent to the income
tax credit in effect after the amendments made by this
section.
(2) Coordination with credit allowed against united states
income taxes.--The credit allowed against United States
income taxes for any taxable year under the amendments made
by this section to section 51 of the Internal Revenue Code of
1986 to any person with respect to any qualified veteran
shall be reduced by the amount of any credit (or other tax
benefit described in paragraph (1)(B)) allowed to such person
against income taxes imposed by the possession of the United
States by reason of this subsection with respect to such
qualified veteran for such taxable year.
(3) Definitions and special rules.--
(A) Possession of the united states.--For purposes of this
subsection, the term ``possession of the United States''
includes American Samoa, Guam, the Commonwealth of the
Northern Mariana Islands, the Commonwealth of Puerto Rico,
and the United States Virgin Islands.
(B) Mirror code tax system.--For purposes of this
subsection, the term ``mirror code tax system'' means, with
respect to any possession of the United States, the income
tax system of such possession if the income tax liability of
the residents of such possession under such system is
determined by reference to the income tax laws of the United
States as if such possession were the United States.
(C) Treatment of payments.--For purposes of section
1324(b)(2) of title 31, United States Code, the payments
under this subsection shall be treated in the same manner as
a refund due from credit provisions described in such
section.
(g) Effective Date.--The amendments made by this section
shall apply to individuals who begin work for the employer
after the date of the enactment of this Act.
SEC. 262. EXTENSION OF REDUCED PENSION FOR CERTAIN VETERANS
COVERED BY MEDICAID PLANS FOR SERVICES
FURNISHED BY NURSING FACILITIES.
Section 5503(d)(7) of title 38, United States Code, is
amended by striking ``May 31, 2015'' and inserting
``September 30, 2016''.
SEC. 263. REIMBURSEMENT RATE FOR AMBULANCE SERVICES.
Section 111(b)(3) of title 38, United States Code, is
amended by adding at the end the following new subparagraph:
``(C) In the case of transportation of a person under
subparagraph (B) by ambulance, the Secretary may pay the
provider of the transportation the lesser of the actual
charge for the transportation or the amount determined by the
fee schedule established under section 1834(l) of the Social
Security Act (42 U.S.C. 1395(l)) unless the Secretary has
entered into a contract for that transportation with the
provider.''.
SEC. 264. EXTENSION OF AUTHORITY FOR SECRETARY OF VETERANS
AFFAIRS TO OBTAIN INFORMATION FROM SECRETARY OF
TREASURY AND COMMISSIONER OF SOCIAL SECURITY
FOR INCOME VERIFICATION PURPOSES.
Section 5317(g) of title 38, United States Code, is amended
by striking ``September 30, 2011'' and inserting ``September
30, 2016''.
SEC. 265. MODIFICATION OF LOAN GUARANTY FEE FOR CERTAIN
SUBSEQUENT LOANS.
(a) In General.--Section 3729(b)(2) of title 38, United
States Code, is amended--
(1) in subparagraph (A)--
(A) in clause (iii), by striking ``November 18, 2011'' and
inserting ``October 1, 2016''; and
(B) in clause (iv), by striking ``November 18, 2011'' and
inserting ``October 1, 2016'';
(2) in subparagraph (B)--
(A) in clause (i), by striking ``November 18, 2011'' and
inserting ``October 1, 2016'';
(B) by striking clauses (ii) and (iii);
(C) by redesignating clause (iv) as clause (ii); and
(D) in clause (ii), as redesignated by subparagraph (C), by
striking ``October 1, 2013'' and inserting ``October 1,
2016'';
(3) in subparagraph (C)--
(A) in clause (i), by striking ``November 18, 2011'' and
inserting ``October 1, 2016''; and
(B) in clause (ii), by striking ``November 18, 2011'' and
inserting ``October 1, 2016''; and
(4) in subparagraph (D)--
(A) in clause (i), by striking ``November 18, 2011'' and
inserting ``October 1, 2016''; and
(B) in clause (ii), by striking ``November 18, 2011'' and
inserting ``October 1, 2016''.
(b) Effective Date.--The amendments made by subsection (a)
shall take effect on the later of--
(1) November 18, 2011; or
(2) the date of the enactment of this Act.
TITLE III--OTHER PROVISIONS RELATING TO FEDERAL VENDORS
SEC. 301. ONE HUNDRED PERCENT LEVY FOR PAYMENTS TO FEDERAL
VENDORS RELATING TO PROPERTY.
(a) In General.--Section 6331(h)(3) of the Internal Revenue
Code of 1986 is amended by striking ``goods or services'' and
inserting ``property, goods, or services''.
(b) Effective Date.--The amendment made by this section
shall apply to levies issued after the date of the enactment
of this Act.
SEC. 302. STUDY AND REPORT ON REDUCING THE AMOUNT OF THE TAX
GAP OWED BY FEDERAL CONTRACTORS.
(a) Study.--
(1) In general.--The Secretary of the Treasury, or the
Secretary's delegate, in consultation with the Director of
the Office of Management and Budget and the heads of such
other Federal agencies as the Secretary determines
appropriate, shall conduct a study on ways to reduce the
amount of Federal tax owed but not paid by persons submitting
bids or proposals for the procurement of property or services
by the Federal government.
(2) Matters studied.--The study conducted under paragraph
(1) shall include the following matters:
(A) An estimate of the amount of delinquent taxes owed by
Federal contractors.
(B) The extent to which the requirement that persons
submitting bids or proposals certify whether such persons
have delinquent tax debts has--
(i) improved tax compliance; and
(ii) been a factor in Federal agency decisions not to enter
into or renew contracts with such contractors.
(C) In cases in which Federal agencies continue to contract
with persons who report having delinquent tax debt, the
factors taken into consideration in awarding such contracts.
(D) The degree of the success of the Federal lien and levy
system in recouping delinquent Federal taxes from Federal
contractors.
(E) The number of persons who have been suspended or
debarred because of a delinquent tax debt over the past 3
years.
(F) An estimate of the extent to which the subcontractors
under Federal contracts have delinquent tax debt.
(G) The Federal agencies which have most frequently awarded
contracts to persons notwithstanding any certification by
such person that the person has delinquent tax debt.
(H) Recommendations on ways to better identify Federal
contractors with delinquent tax debts.
(b) Report.--Not later than 12 months after the date of the
enactment of this Act, the Secretary of the Treasury shall
submit to the Committee on Ways and Means of the House of
Representatives, the Committee on Finance of the Senate, the
Committee on Oversight and Government Reform of the House of
Representatives, and the Committee on Homeland Security and
Government Affairs of the Senate, a report on the study
conducted under subsection (a), together with any legislative
recommendations.
TITLE IV--MODIFICATION OF CALCULATION OF MODIFIED ADJUSTED GROSS INCOME
FOR DETERMINING CERTAIN HEALTHCARE PROGRAM ELIGIBILITY
SEC. 401. MODIFICATION OF CALCULATION OF MODIFIED ADJUSTED
GROSS INCOME FOR DETERMINING CERTAIN HEALTHCARE
PROGRAM ELIGIBILITY.
(a) In General.--Subparagraph (B) of section 36B(d)(2) of
the Internal Revenue Code of 1986 is amended by striking
``and'' at the end of clause (i), by striking the period at
the end of clause (ii) and inserting ``, and'', and by adding
at the end the following new clause:
``(iii) an amount equal to the portion of the taxpayer's
social security benefits (as defined in section 86(d)) which
is not included in gross income under section 86 for the
taxable year.''.
(b) Effective Date.--The amendments made by this section
shall take effect on the date of the enactment of this Act.
(c) No Impact on Social Security Trust Funds.--
(1) Estimate of secretary.--The Secretary of the Treasury,
or the Secretary's delegate, shall annually estimate the
impact that the amendments made by subsection (a) have on the
income and balances of the trust funds established under
section 201 of the Social Security Act (42 U.S.C. 401).
(2) Transfer of funds.--If, under paragraph (1), the
Secretary of the Treasury or the Secretary's delegate
estimates that such amendments have a negative impact on the
income and balances of such trust funds, the Secretary shall
transfer, not less frequently than quarterly, from the
general fund an amount sufficient so as to ensure that the
income and balances of such trust funds are not reduced as a
result of such amendments.
TITLE V--BUDGETARY EFFECTS
SEC. 501. STATUTORY PAY-AS-YOU-GO ACT OF 2010.
The budgetary effects of this Act, for the purpose of
complying with the Statutory Pay-As-You-Go Act of 2010, shall
be determined by reference to the latest statement titled
``Budgetary Effects of PAYGO Legislation'' for this Act,
submitted for printing in the Congressional Record by the
Chairman of the House Budget Committee, provided that such
statement has been submitted prior to the vote on passage.
[[Page S7346]]
Ms. SNOWE. Mr. President, I would like to express my support for
provisions contained within the amendment offered by Senator Tester, as
they will make critical strides in addressing the reality that far too
many of our Nation's veterans are finding it difficult--if not
impossible--to find work in the civilian job market after they leave
military service. Senator Tester's amendment is illustrative of how our
Nation's government should work, as it contains ideas from both bodies
of Congress, both Republicans and Democrats, and the executive branch.
Over the past year, I have been particularly pleased to support many
of the concepts contained within this amendment in other forms. I
joined Senator Patty Murray, chair of the Veterans' Affairs Committee,
in June by cosponsoring the Hiring Heroes Act, which is the source of a
great number of the sections of this amendment. I am also gratified to
see that this amendment contains the President's September proposal to
offer tax credits to businesses that hire unemployed and disabled
veterans. As I said then, providing tax incentives for these hires is
an excellent means of fostering job creation--in this case, it has the
added benefit of helping to address veteran unemployment rates.
Earlier this week, Secretary of Defense Leon Panetta held a
roundtable on veteran unemployment in which he noted that today's
newest veterans--the men and women who have risked their health and
their very lives by serving in places like Iraq, Afghanistan, and other
parts of the world--are ``the next greatest generation''' which have
``dedicated themselves to serving this country.''
On this point, Secretary Panetta could not be more correct. As a
senior member of the Senate Select Committee on Intelligence, I have
had no higher privilege than witnessing firsthand our exceptional
servicemen and women on the frontlines in Afghanistan and Iraq. Their
steadfast courage, leadership, and dedication ensures that our armed
forces are second to none and the finest on the planet.
Yet despite their extraordinary commitment to this Nation,
unparalleled technical and practical skills, and remarkable
capabilities demonstrated under the most difficult conditions possible,
too many of our Nation's veterans remain unemployed today.
Indeed, according to the Bureau of Labor Statistics' October 2011
report, post-9/11 veterans have had a particularly challenging time
finding employment, with more than 12 percent of them currently
unemployed. Not only is this number far too high, but it greatly
exceeds the nation's unemployment level for nonveterans. Our youngest
veterans--those between ages 18 and 24--are experiencing even greater
difficulty finding jobs, with unemployment rates exceeding 20 percent.
For our veterans--and our Nation--such statistics are nothing less
than a travesty. And that is why I so strongly support the efforts of
this Chamber to lend a well-deserved helping hand to our veterans in
their efforts to find employment. Indeed, when it comes to securing a
job, is there any question that we all should be fighting for those who
have so nobly fought for America?
The amendment before the Senate today is a crucial effort to do so.
Some of its provisions will ensure that our servicemembers receive
assistance in preparing for their transition to life as a civilian,
looking for a job, and identifying good career options. Other
provisions will establish a pioneering effort to identify equivalencies
between the skills our servicemen and women develop in the military and
the qualifications required for civilian employment. Still other
sections will extend the opportunity for servicemembers and veterans to
receive supplemental rehabilitation and vocational benefits, providing
them additional time to prepare for the job market.
Efforts such as these are imperative in order to allow our veterans
to prepare to be competitive in today's job market. Other items in this
amendment, such as tax credits of up to $9,600 for each unemployed or
disabled veteran hired by a business, offer further help by encouraging
companies to give our veterans the chance they deserve to work.
As Secretary Panetta said at the recent roundtable, ``the best thing
we could do to honor those that have served is to make sure that when
they come back, they have some opportunity to be able to become a part
of our society and not just wind up on the unemployment rolls.''
Striving to increase those opportunities is the absolute least we
should do.
In that light, I strongly believe we should take all reasonable steps
possible to provide our servicemembers and veterans with the training
they need to make the transition into the civilian workforce. We should
also do all we can to encourage companies to hire veterans returning
from Iraq, Afghanistan and elsewhere around the world.
For these reasons, I am very pleased to see the Senate considering
the Tester amendment today. At the same time, it is my practice to vote
``present'' on legislation which contains the potential or appearance
of association with the private business activity of my spouse. As
such, and in consultation with the Senate Select Committee on Ethics, I
voted ``present'' in this particular instance, despite my overwhelming
support for the vast majority of this amendment.
Mr. President, over the past year, I have been pleased to support
many of the concepts contained in H.R. 674, as amended and passed by
the Senate today. This June, I joined Senator Patty Murray, chair of
the Veterans' Affairs Committee, by cosponsoring the Hiring Heroes Act,
which is the source of a great number of provisions in this bill
intended to address the high unemployment rate of our Nation's
veterans. This bill also now contains the President's proposal to offer
tax credits to businesses that hire unemployed and disabled veterans--I
have supported this proposal since the President announced it in
September, and I continue to believe that providing tax incentives to
businesses for hiring veterans is an excellent means of fostering job
creation while helping to address veteran unemployment rates.
And of course, I could not be more pleased to have helped to author
the repeal of the 3 percent withholding provision that is at the heart
of H.R. 674. This provision will greatly aid small businesses that are
hard-hit by current law requirements that withhold a portion of
payments to contractors until they pay taxes on the earnings. By
repealing this mandate, which threatens to overburden business owners
and taxpayers alike, and stifle the economy at a time when we cannot
afford any unnecessary obstacles in the road to recovery, H.R. 674 will
help businesses, their owners, and their employees all over our Nation.
For these reasons, I was gratified to see the Senate pass H.R. 674
today. However, it is my practice to vote ``present'' on legislation
which contains the potential or appearance of association with the
private business activity of my spouse. As such, and in consultation
with the Senate Select Committee on Ethics, I voted ``present'' in this
particular instance, despite my overwhelming support for the vast
majority of this bill.
VOTE EXPLANATION
Mrs. HAGAN. Mr. President, I was unavoidably detained for
rollcall vote No. 204, passage of H.R. 674 as amended. This legislation
repeals the imposition of 3 percent withholding on certain payments
made to vendors by government agencies. It also includes an amendment I
supported to provide our veterans with greater job opportunities in
today's difficult economy.
Had I been present for rollcall vote No. 204, I would have voted yea
on final passage.
The PRESIDING OFFICER. The majority leader.
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