[Congressional Record Volume 157, Number 175 (Wednesday, November 16, 2011)]
[House]
[Pages H7643-H7661]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




               3% WITHHOLDING REPEAL AND JOB CREATION ACT

  Mr. CAMP. Madam Speaker, I move to suspend the rules and concur in 
the Senate amendment to the 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.
  The Clerk read the title of the bill.
  The text of the Senate amendment is as follows:

       Senate 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.

[[Page H7644]]

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.
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--

[[Page H7645]]

       ``(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
       ``(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.--

[[Page H7646]]

       (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 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

[[Page H7647]]

     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.
       ``(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:

[[Page H7648]]

       ``(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 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--

[[Page H7649]]

       ``(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) 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.

[[Page H7650]]

                       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.

  The SPEAKER pro tempore. Pursuant to the rule, the gentleman from 
Michigan (Mr. Camp) and the gentleman from Michigan (Mr. Levin) each 
will control 20 minutes.
  The Chair recognizes the gentleman from Michigan (Mr. Camp).


                             General Leave

  Mr. CAMP. Madam Speaker, I ask unanimous consent that all Members 
have 5 legislative days within which to revise and extend their remarks 
and include extraneous material on the bill under consideration.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from Michigan?
  There was no objection.
  Mr. CAMP. Madam Speaker, I yield myself such time as I may consume.
  I come to the floor today in support of permanently repealing the 
onerous, job-killing 3 percent withholding law. During House action 
last month, this legislation garnered more than 400 votes for repeal 
and passed, as amended, with an overwhelming 95 votes in the Senate 
last week.
  The legislation, which has been championed by Ways and Means Health 
Subcommittee Chairman Wally Herger and our Democrat colleague Earl 
Blumenauer, is supported by President Obama and makes clear that when 
we work together, we can find bipartisan solutions to the laws and 
regulations that stifle job creation. This legislation does just that 
and frees up valuable resources businesses can use for hiring.
  In addition to the provisions in the House-passed 3 percent 
withholding bill, the Senate amendment contains a variety of veterans-
related provisions--a group of Americans clearly deserving of our 
support.
  Finally, the Senate amendment retains another provision passed by 
this House with bipartisan support and authored by one of the newest 
members of the Ways and Means Committee, Representative Diane Black. 
Mrs. Black's legislation modifies the income definition for determining 
eligibility for exchange subsidies, Medicaid, and the Children's Health 
Insurance Program, conforming the definition of income in the 
Democrats' health care law to the standards used by other Federal low-
income programs such as food stamps and public housing. In doing so, 
taxpayers save $13 billion, and Medicaid funds will not be diverted 
away from serving America's low-income families.
  Madam Speaker, today we can take the final step and send this 
deficit-reducing and job-creating legislation to the President's desk. 
I urge my colleagues to vote ``yes'' on the Senate amendment to H.R. 
674, and I look forward to seeing the President sign this bill into 
law.
  I ask unanimous consent that the gentleman from California (Mr. 
Herger) control the balance of my time.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from Michigan?
  There was no objection.
  Mr. LEVIN. Madam Speaker, I yield myself such time as I may consume.
  I believe this bill will pass with overwhelming support. Nearly 
everyone agrees that the 3 percent withholding provision should be 
repealed. It was a misguided approach when it was enacted by the last 
Republican Congress and it is misguided now. That is why we tried to 
repeal it earlier and ultimately delayed its implementation. Its 
repeal, however, should not be claimed as a significant jobs bill. As 
economist Mark Zandi has said, ``I don't think it's meaningful in terms 
of jobs. It's more trying to clean up something that needs cleaning 
up.''
  The veterans provisions added by the Senate are a real jobs bill. 
They are a useful start in helping those who have loyally served our 
Nation find work, and I would hope all of us support them, including 
the tax credits to encourage businesses to hire veterans.
  Most on our side support these provisions, and they were included in 
the President's jobs proposal. But no one should consider these modest 
steps as a substitute for action on the President's comprehensive jobs 
plan, which Republicans have so far blocked.
  The President's jobs plan includes a payroll tax cut that would save 
the average family $1,500 a year. It includes tax credits for hiring 
the long-term unemployed, payroll tax cuts for hiring, and incentives 
to invest. It includes an infrastructure bank, and $75 billion to build 
roads and schools. That's a jobs agenda that could help many of the 14 
million Americans who are still looking for work. Picking out two of 
the smaller pieces of that agenda and saying you've acted on the 
President's jobs bill is really disingenuous. The 3 percent withholding 
repeal and the veterans provisions are things we should do, but we must 
do much more.

                              {time}  1310

  Millions are counting on us to do more. So passage of this bill today 
represents a challenge to the majority in this House. End your blockade 
of comprehensive jobs legislation as proposed by the President of the 
United States.
  I reserve the balance of my time.
  Mr. HERGER. Madam Speaker, I yield myself such time as I may consume.
  I rise in strong support of H.R. 674. Members of this House are well 
aware of why the 3 percent withholding tax must be repealed. It 
threatens to destroy the cash flow of thousands of small businesses 
that sell goods and services to the government agencies and impose 
additional costs on cash-strapped State and local governments.
  Today I want to talk about the big picture and why this is so 
important for job creation. Americans are hurting. Nearly 14 million 
are unable to find work, and millions more are stuck in part-time jobs, 
even though they would like to work more. We are now well into the 
fourth year of this downturn, and many Americans are increasingly 
discouraged about the long-term future of our economy.
  America's job creators are hurting too. Today, thousands of small 
business owners will sit down, look over their books, and try to 
discern what the future holds. They are uncertain about whether there 
will be sufficient demand for their goods and services. They are 
uncertain about how Europe's fiscal crisis will affect our economy and 
whether we will do what is needed to address our own debt crisis before 
it's too late. And they're uncertain about the direction of government 
policy, whether Washington will continue to hand down new taxes and 
regulations that stifle economic growth.
  The 3 percent withholding tax is an example of the kind of government 
policies that discourage job creation. When small business owners are 
evaluating whether their investments will allow them to make a living, 
it matters if a new tax is going to cut off their cash flow in just 
over a year.
  Repealing this tax is one important step. It sends a message to 
America's job creators that jobs are our number one priority and that 
Congress is committed to undoing policies that stand in the way of 
restoring prosperity.
  I reserve the balance of my time.
  Mr. LEVIN. I yield 2 minutes to the gentleman from Georgia (Mr. 
Lewis), a distinguished member of our committee.
  Mr. LEWIS of Georgia. Madam Speaker, the most important task we face 
today is helping Americans get back to work. People stop me all over 
metro Atlanta and tell me how long they've been looking for work, how 
many applications they have filled out, how many resumes they have 
sent.
  And with the unemployment rate for Iraq and Afghanistan veterans over 
12 percent, Senator Tester's amendment is a good start. It is a 
necessary start. These are people who want to work, who need to work. 
They don't want a handout; they want a job.
  These men and women put on that uniform to serve and protect our 
country. We can and must do more to honor their service. It is simply 
the right and good thing to do.
  Now, I must say, Madam Speaker, that I strongly object to the 
Republican effort to stain a bipartisan bill with a partisan poison 
pill, making it more difficult for America's seniors to get private 
health insurance and Medicaid. It is not right, it is not fair, and it 
is not just.

[[Page H7651]]

  Mr. HERGER. Madam Speaker, I yield 3 minutes to the gentlewoman from 
Tennessee (Mrs. Black), who has been instrumental in working on this 
legislation and coming up with savings that we can do to see that it is 
paid for.
  Mrs. BLACK. Thank you, Chairman Herger.
  Madam Speaker, I would like to begin by saying that I am extremely 
proud that my legislation is part of this very worthy, bipartisan jobs 
package.
  Congress can and should work together to find common ground and 
forward solutions-based legislation like what we are considering right 
here. Today the House will pass a package that not only creates more 
certainty for small business, encourages hiring of our Nation's 
veterans, but is also paid for, thanks to my legislation, that repeals 
a costly glitch in the health care law. And this is more than deficit 
neutral. This legislation will save billions of dollars.
  I've spoken on the floor of the House previously about my cost-saving 
legislation that is now part of this package. When the Affordable Care 
Act was passed, few realized that this legislation contained a loophole 
that would allow middle class Americans to receive Medicaid benefits. 
The new income formula that determines eligibility for government 
subsidized health insurance, the Modified Adjusted Gross Income, or 
MAGI, deviated from other Federal assistance programs, failing to 
include Social Security benefits as income.
  Under the health care law, a married couple with an annual income of 
over $60,000 could qualify to receive Medicaid benefits. Let me put it 
in more stark terms. Changing the income formula could result in 
individuals whose incomes are up to 400 percent of the poverty level 
receiving Medicaid. This is unacceptable. I very strongly believe that 
it is our duty to ensure that the very scarce Medicaid resources are 
there for those in most need.
  Again, let me state that the Affordable Care Act income formula for 
Medicaid, CHIP, and exchange subsidies deviated from the eligibility 
requirements for other Federal assistance programs. Supplemental Social 
Security Income; Supplemental Nutrition Programs, known as food stamps; 
Temporary Assistance for Needy Families; and public housing all include 
the entire Social Security benefit as income.
  My legislation, now a part of this package, adds Social Security 
benefits back into the equation, realigning Medicaid with the other 
programs and stopping these improper payments before they occur.
  Closing the loophole in Medicaid will save $13 billion over 10 years 
according to the Congressional Budget Office. And by adding my 
legislation into this package that includes the 3 percent withholding 
repeal and the veterans tax deductions, this package will save vital 
tax dollars.
  Madam Speaker, I'd like to take a moment to praise other sections of 
this bill. And on the heels of Veterans Day, I cannot think of a better 
time for Congress to step forward and help our veterans get to work. As 
a wife, mother, and daughter of veterans, I know how important it is 
that we support those brave men and women who fought for our country.
  The SPEAKER pro tempore. The time of the gentlewoman has expired.
  Mr. HERGER. I yield the gentlewoman 1 additional minute.
  Mrs. BLACK. I thank the gentleman.
  I hope that this bipartisan, bicameral veterans legislation is just 
the beginning of more veterans bills getting passed by Congress.
  Veterans who return home to us and seek work should be able to find 
it. With our economic recovery sluggish, at best, my colleague Mr. 
Herger's 3 percent withholding repeal will go a long way to create more 
certainty for small business. Taxing business at 3 percent is something 
we cannot afford.
  I look forward to this legislation and the entire package being 
signed into law by the President as soon as possible. We should not 
have to wait for these commonsense, bipartisan solutions to go into 
effect.
  Mr. LEVIN. Madam Speaker, it is now my real pleasure to yield 2 
minutes to the gentleman from California (Mr. Filner), a gentleman who 
has worked so hard on veterans issues.
  Mr. FILNER. Thank you, Mr. Levin, and I appreciate the time. And 
thank you, Mr. Herger, for bringing us this bill.
  I rise in support of H.R. 674. Every day I get phone calls and 
letters from veterans telling me how rewarding their service was and 
what an invaluable experience they received in the military. But they 
are confused as to why potential employers don't value their time and 
service and why they get rejection letters for jobs they are qualified 
to perform.
  These veterans are highly skilled individuals who are ready to make 
an immediate impact to any job. Veterans bring real-world experience to 
any company and, unfortunately, employers fail to see this value.
  In August of this year, the President proposed a comprehensive plan 
to decrease the veteran unemployment rate. Part of his plan includes a 
tax credit for employers, and I'm happy to see that Senator Murray 
included this in H.R. 674. It would provide a tax credit for firms that 
hire certain unemployed veterans, and these tax credits are a win for 
veterans and a win for the companies. The credits will incentivize 
struggling businesses that need to increase their work force to hire 
veterans while getting a tax deduction.

                              {time}  1320

  The bill also provides veterans with training, mentoring, and 
placement services and allows for the appointment of honorably 
discharged veterans to the civil service. I'm happy to see H.R. 674 
move forward because it will provide individualized assessments for 
servicemembers in the Transitional Assistance Program, increase access 
to apprenticeship programs for separating servicemembers, provide 
authority to the VA to provide services to servicemembers with severe 
injuries, and many other positive programs that will help veterans.
  The President's message was clear. We must fight for our 
servicemembers and veterans by enacting legislation that will help 
veterans get jobs.
  I hope that all of my colleagues will join me in supporting H.R. 674.
  Mr. HERGER. Madam Speaker, I yield 5 minutes to the gentleman from 
Florida (Mr. Miller), the chairman of the Veterans' Affairs Committee.
  Mr. MILLER of Florida. I thank the gentleman for yielding.
  As chairman of the House Veterans' Affairs Committee, I do stand 
today in the strongest possible support of the Senate amendment to H.R. 
674, which includes the provision of the bipartisan and bicameral VOW 
to Hire Heroes Act of 2011.
  This bill contains many provisions of H.R. 2433, the Veterans 
Opportunity to Work Act, or the VOW Act, which was introduced in July 
and passed the House by an overwhelming majority just last month.
  The VOW Act honors the 1 percent of Americans who, as veterans, have 
signed a blank check in the amount of up to and including their lives 
and payable to the other 99 percent of Americans. In return for that 
investment, too many of them, veterans of every working age generation, 
are finding themselves unemployed or seriously underemployed due to the 
current economic downturn. Unfortunately, today's economy has 
eliminated millions of jobs, many of which will unfortunately never 
return.
  Regardless of the reason, nearly one million veterans need help in 
acquiring the skills needed for today's job market. That is what the 
VOW to Hire Heroes Act will do in a very comprehensive and cost-
effective manner.
  There are millions of jobs going unfilled right now because employers 
can't find workers with the right skills. I'm proud that a major 
provision of the VOW to Hire Heroes Act will give nearly 100,000 
veterans a chance to gain the new skills that are in demand for today's 
jobs. And these jobs are not just in high-tech fields. Many are in the 
trades. Many are in fields that cannot be moved overseas, like 
transportation. And this bill helps provide the training needed to 
complete and compete for these types of jobs without adding new 
programs.
  In fact, the two major provisions of this bill essentially recycle 
two existing well-regarded education and training programs, the 
Montgomery GI Bill and the Vocational Rehabilitation and Employment 
Program. That will make use of existing staff and current regulations.

[[Page H7652]]

  As I said, this Act takes a comprehensive approach. For those just 
leaving the service, this bill would vastly improve the Transition 
Assistance Program, or TAP, as it's known, by adding personal skills 
assessment and improved skills crosswalks into civilian occupations.
  The bill would also begin the process of working with the States to 
help standardize occupational licensing and credentialing, a major 
bottleneck that often wastes millions of dollars spent on our military 
training.
  For the disabled veterans who have completed VA's Voc Rehab and 
Employment Program and who have exhausted their unemployment benefits, 
the bill would offer up to an additional year of vocational 
rehabilitation.
  Madam Speaker, I want to thank the chair of the Senate Committee on 
Veterans Affairs, Senator Patty Murray, for her insight in including 
the vocational rehabilitation benefits as part of the compromise bill. 
I have two final points. The first is, this bill is paid for both 
mandatory and discretionary. We have worked with the veteran services 
organizations in order to find the pay-for provisions, and they 
understand the urgency to help veterans become employed, and I thank 
them for their support of this legislation.
  Secondly, Madam Speaker, I would like to thank Chairman Camp. I know 
his plate is full right now, and I thank him most sincerely for helping 
bring this to the floor.
  Mr. LEVIN. Madam Speaker, I yield 2 minutes to a very distinguished 
member of our committee and a cosponsor of the amendment that we now 
add to the original bill, the gentleman from Oregon (Mr. Blumenauer).
  Mr. BLUMENAUER. It is a pleasure to be on the floor with my partner 
on this legislation, the gentleman from California (Mr. Herger), being 
able to see it finally brought to fruition. It was actually made a 
little better with the inclusion of these important provisions for our 
veterans.
  I am hopeful that we will act with dispatch and approve it 
unanimously. But I hope we can also focus on what this chapter 
represents. It was something, in terms of working with the gentleman 
from California, moving this through Congress, that it seemed to me 
that there are three elements that we ought to focus on going forward.
  First and foremost, that same spirit that has resulted in being able 
to fix and improve this legislation ought to be focused on how we 
rebuild and renew America. Because so many of the businesses and 
governments that were going to be pounded with this 3 percent 
withholding are struggling to deal with challenges that they face.
  There are hundreds of thousands of veterans that could potentially be 
at work rebuilding and renewing America. We are in a precarious 
position in terms of our competitiveness internationally, with problems 
of congestion, pollution. I am hopeful that this same spirit focused 
here can be focused on this major effort to rebuild and renew America 
that can help revitalize the economy while it improves our communities.
  Second, we need to take a hard look at flaws in how we score 
legislation. This piece of legislation that we were looking at, part of 
the challenge was to have some sort of offset because it was going to 
``cost government money.'' Well, as a practical matter that is not the 
case because the CBO rules never take into account how much it would 
cost to implement it. And as a result of the hearings with Mr. Herger, 
with the small business Committee, with a whole range of sources, I am 
absolutely confident that it would have cost the Federal Government far 
more to implement it than it ever would have collected.
  The SPEAKER pro tempore. The time of the gentleman has expired.
  Mr. LEVIN. I yield the gentleman an additional minute.
  Mr. BLUMENAUER. We need to make sure going forward we don't have 
these aberrations that cause us to go through these gyrations for 
something that on its face really is not going to yield the economic 
results.
  Finally, I hope we can work together in the same sort of spirit, 
evidenced working with Mr. Herger, Chairman Camp, Ranking Member Levin, 
to deal with the broader picture of how we're going to solve the long-
term problems of our budget deficit and our flawed revenue system. We 
can reform our system, give a balanced program that both reforms and 
raises revenues, that changes how we do business. I'm convinced that 
this is within the capacity of those of us in Congress, and today's 
positive vote on this legislation is a little indication of how it can 
be done.
  Mr. HERGER. Madam Speaker, I yield 1 minute to the gentleman from 
Indiana (Mr. Stutzman), the chairman of the Veterans' Affairs 
Subcommittee on Economic Opportunity.
  Mr. STUTZMAN. I thank the chairman for yielding.
  Madam Speaker, jobs for America's veterans has become a popular topic 
over the past few weeks. The VOW to Hire Heroes Act is a vital first 
step in meeting our responsibilities to that 1 percent of Americans 
mentioned by VA Committee Chairman Miller in his remarks.
  For those who are in the middle of their civilian working life, 
gaining new skills is often problematic due to a lack of resources to 
fund education and training, while recently discharged veterans have 
the post 9/11 GI Bill's generous resources to acquire the skills now in 
demand. Therefore, I believe the most important provision in the VOW to 
Hire Heroes Act offers 99,000 unemployed veterans between the ages of 
35 and 60 the resources to acquire those new skills.
  To my colleagues, the veterans provisions in this bill are worthy of 
your support, and I urge you to join me in voting ``yes'' on the VOW to 
Hire Heroes Act.
  The Amendment to H.R. 674, includes the VOW to Hire Heroes Act of 
2011, which reflects a Compromise Agreement reached by the House and 
Senate Committees on Veterans' Affairs (the Committees) on the 
following bills reported during the 112th Congress: H.R. 2433, as 
amended, (House Bill); and S. 951, as reported (Senate Bill).
  H.R. 2433, as amended, passed the House on October 12, 2011. S. 951 
was reported favorably out of the Senate Committee on July 18, 2011.
  The Committees have prepared the following explanation of certain 
provisions contained in the amendment to H.R. 674, as amended, to 
reflect a Compromise Agreement between the Committees. Differences 
between the provisions contained in the Compromise Agreement and the 
related provisions of the House Bill and the Senate Bill are noted in 
this document, except for clerical corrections, conforming changes made 
necessary by the Compromise Agreement, and minor drafting, technical, 
and clarifying changes.

                    Subtitle A--Retraining Veterans


                 VETERANS RETRAINING ASSISTANCE PROGRAM

       Current Law
       In general, educational assistance under the Montgomery GI 
     Bill (Chapter 30 of title 38 United States Code (U.S.C.)) is 
     limited by section 3031 of title 38, U.S.C., to ten years 
     following a servicemember's last discharge from active duty 
     in the Armed Forces.
       Senate Bill
       The Senate Bill contains no similar provision.
       House Bill
       Section 101 of H.R. 2433, as amended, would provide an 
     opportunity for unemployed veterans ages 35 to 60 to gain new 
     skills through a temporary expansion of eligibility for an 
     existing education and training benefit, the Montgomery GI 
     Bill (MGIB). This section would allow these veterans to 
     enroll in courses at community colleges and technical 
     training schools for up to 12 months. Education payments 
     would be administered under the rules governing the existing 
     MGIB and would only be payable to veterans enrolled in 
     education or training courses that lead to an associate 
     degree, certificate, or similar qualification, in a high 
     growth occupation as determined by the U.S. Department of 
     Labor (DOL).
       This section would authorize the DOL and the U.S. 
     Department of Veterans Affairs (VA) to enroll up to 100,000 
     unemployed veterans beginning June 1, 2011, through March 31, 
     2014. Veterans would be eligible to receive the monthly MGIB 
     benefit that is in effect for up to 12 months. Payments under 
     this section would terminate after March 31, 2014. In 
     addition to the above mentioned age requirement, the veteran 
     must have been discharged under conditions other than 
     dishonorable, be unemployed as determined by the Secretary of 
     Labor with special consideration given to those who have been 
     unemployed for at least 26 consecutive weeks and have no 
     eligibility for other education programs administered by VA. 
     The House Bill includes a provision requiring program 
     participants to certify attendance on a monthly basis as is 
     done under the existing MGIB. This provision was included to 
     minimize overpayments to enrollees who do not complete their 
     course of training. This section would require DOL and VA to 
     submit a report to the Committees on veteran participants and 
     their employment status after participation.

[[Page H7653]]

       Compromise Agreement
       Section 211 of the Compromise Agreement generally follows 
     the House's position except that 99,000 unique beneficiaries 
     would be authorized under the agreement. The agreement 
     removes any of the special considerations for eligibility 
     listed in the House provision to simplify the administration 
     of the program. It also directs VA and DOL to jointly carry 
     out this program with a memorandum of agreement that includes 
     provisions to create an appeals system for denied applicants. 
     To provide VA and DOL with the time necessary to administer 
     this section, a July 1 effective date is established. The 
     Committees believe that DOL, through the state employment 
     agencies, is the most appropriate intake point for unemployed 
     veterans to apply for this grant program. DOL is also the 
     appropriate entity to determine that an applicant is 
     unemployed and whether they are currently or had been a 
     participant in any other job training programs. Following 
     these determinations, DOL would forward the application to 
     VA. VA would then determine an applicant's veteran status and 
     eligibility for other education programs administered by VA 
     under title 38 U.S.C. and title 10 U.S.C. The Compromise 
     Agreement also provided up to $2 million in assistance to VA 
     for use on information technology systems. This is the amount 
     estimated by the Congressional Budget Office to develop and 
     maintain information technology systems to support this 
     section. Finally, the Compromise Agreement includes the 
     Senate Committee on Health, Education, Labor and Pension and 
     the House Committee on Education and the Workforce in the 
     list of committees that would receive the final report on 
     implementation of this section.
       The Committees understand that many veterans are in need of 
     the assistance provided under section 101, and urge DOL and 
     VA to come to an agreement on the administration of the 
     program quickly so it can be fully implemented and ready to 
     process applications by the mandated July 1, 2012 start date.

        Subtitle B--Improving the Transition Assistance Program


     MANDATORY PARTICIPATION OF MEMBERS OF THE ARMED FORCES IN THE 
        TRANSITIONAL ASSISTANCE PROGRAM OF DEPARTMENT OF DEFENSE

       Current Law
       Section 1144 of title 10, U.S.C., establishes an 
     interagency program known as the Transition Assistance 
     Program (TAP), which offers basic training on veterans 
     benefits, job hunting skills, and other related subjects. TAP 
     is delivered via a partnership between the U.S. Department of 
     Defense (DOD), DOL's Veterans' Employment and Training 
     Service (VETS), VA, and the U.S. Department of Homeland 
     Security (DHS). TAP includes a wide variety of employment-
     related training lessons as well as a VA benefits briefing, 
     and the Disabled Transition Assistance Program for wounded or 
     injured servicemembers. Under current law, DOD and DHS are 
     required to encourage servicemembers to participate in TAP, 
     but are not required to mandate their participation. Only the 
     U.S. Marine Corps has elected to require its members to 
     participate in TAP.
       Senate Bill
       Section 6 of S. 951, as reported, would amend section 1144 
     of title 10, U.S.C., to require mandatory participation in 
     TAP for all servicemembers with limited exceptions. These 
     exceptions would be set forth by the Secretaries of DOD and 
     DHS in consultation with VA and VETS.
       House Bill
       Section 202 of H.R. 2433, as amended, would amend section 
     1144(c) of title 10, U.S.C., to require mandatory 
     participation in TAP with limited exceptions. The exceptions 
     would allow for enlisted servicemembers who are in the pay 
     grades of E-8 and above, and officers in pay grades, 0-6 and 
     above to be exempt from mandatory participation. Also, a 
     servicemember would be exempt if there is a documented 
     operational requirement that prevents attendance, or if the 
     servicemember submits a written plan, which receives written 
     approval from the servicemember's commanding officer, and the 
     servicemember declines in writing to participate in TAP based 
     on planned post-service employment or acceptance to an 
     education program.
       Compromise Agreement
       Section 221 of the Compromise Agreement reflects the Senate 
     position with minor modifications, and includes a provision 
     to exempt servicemembers from TAP if they possess a 
     specialized skill that is needed to support a unit's imminent 
     deployment.
       It is the Committees' intent that, in light of this effort, 
     all servicemembers participate in at least the most basic 
     components of TAP and that waivers not be granted except for 
     those who are extraordinarily qualified or for those for whom 
     TAP would be unnecessary or inappropriate due to other 
     extraordinary circumstances.


    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

       Current Law
       Under current practice, DOD provides some assessment of 
     servicemembers' skills related to their military occupational 
     specialty (MOS); however, the comparison of military-acquired 
     skills and civilian requirements is not sufficiently robust 
     or detailed, and is not sufficiently inclusive of other 
     training and skills, beyond MOS-related skills, which may 
     qualify a servicemember for civilian employment. The result 
     is many servicemembers who separate from active duty are 
     unable to effectively translate their military experience to 
     an equivalent civilian skill-set.
       Senate Bill
       Section 9 of S. 951, as reported, would require VA, DOD, 
     and DOL to jointly select a contractor to conduct a study to 
     identify any equivalencies between the skills developed by 
     members of the Armed Forces through various MOSs and the 
     qualifications for various positions of civilian employment 
     in the private sector. This section would also require 
     Federal Government departments and agencies to cooperate with 
     the contractor.
       Following completion of the study, the contractor would be 
     required to submit a report to VA, DOD, and DOL. In turn, the 
     section would direct the Departments to jointly submit to 
     Congress the report, along with such comments on the report 
     as the Departments jointly consider appropriate.
       This section would also require DOD to ensure that each 
     member of the Armed Forces participating in TAP receives an 
     individualized assessment of the various positions of 
     civilian employment for which such member may be qualified as 
     a result of the member's MOS. DOD would be required to 
     transmit the individualized assessment to VA and DOL for use 
     by either Department when providing employment related 
     assistance during the member's transition from military 
     service to a civilian career.
       House Bill
       The House Bill contains no similar provisions.
       Compromise Agreement
       Section 222 of the Compromise Agreement reflects the Senate 
     position with minor modifications. Under the study required 
     under subsection (a), the Compromise Agreement would require 
     that DOL be the lead agency in implementing the study 
     required under that subsection. The Committees believe that 
     DOL is already the lead agency under TAP, and the study would 
     be better suited to be completed by them and have VA and DOD 
     only consult with DOL on its contents where appropriate. The 
     Compromise Agreement also expands the range of military 
     experiences to be considered in the study to include not only 
     the servicemember's MOS, but also non-resident training 
     programs, attaining higher ranks, and other experiences. The 
     compromise also includes the Department of Education in the 
     list of federal agencies that shall cooperate with the study 
     required under subsection (a). In subsection (d) the 
     Committees have amended the original provision to require DOD 
     to make the individualized assessment of each servicemember 
     available electronically to both DOL and VA so they can 
     use this assessment in any future employment related 
     assistance they provide the servicemember. It is the 
     Committees' view that this assessment should be stored as 
     part of the servicemember's ``e-benefits'' account. E-
     benefits is a new online system being developed by VA and 
     DOD as an online repository of servicemembers' and 
     veterans' records. This portal will allow the veteran to 
     easily access this assessment so it can assist them with 
     their transition to civilian life after discharge.


               TRANSITION ASSISTANCE PROGRAM CONTRACTING

       Current Law
       Under section 4113 of title 38, U.S.C, Disabled Veteran 
     Outreach Program Specialists (DVOPS) and Local Veteran 
     Employment Representatives (LVER) are authorized to teach 
     most TAP courses in the United States. DVOPS and LVERs are 
     state employees funded by VETS to provide employment services 
     to veterans. The section also provides the option for VETS to 
     contract with instructors to teach TAP. VETS has used this 
     option to contract for overseas TAP instruction as well as at 
     a limited number of locations in the United States.
       Senate Bill
       The Senate Bill contains no similar provision.
       House Bill
       Section 201 of H.R. 2433, as amended, would amend section 
     4113 of title 38, U.S.C., to require VETS to contract for all 
     TAP instruction. This change would not only ensure quality 
     instruction for all servicemembers but it would allow DVOPS 
     and LVERs to focus on their primary mission, which is to 
     provide intensive employment services to disabled veterans 
     and meet with employers to discuss the advantages of hiring 
     veterans. The provision would require implementation of this 
     provision within two years of enactment.
       Compromise Agreement
       Section 223 of the Compromise Agreement follows the House 
     Bill.


 CONTRACTS WITH PRIVATE ENTITIES TO ASSIST IN CARRYING OUT TRANSITION 
              ASSISTANCE PROGRAM OF DEPARTMENT OF DEFENSE

       Current Law
       Section 1144(d) of title 10, U.S.C., lists the types of 
     personnel and organizations that DOL can use in the teaching 
     or facilitating TAP classes. These groups include DVOPS and 
     LVERs, both civilian employees and uniformed members of the 
     Armed Forces, employees of the Veterans Benefits 
     Administration, and representatives of veterans service 
     organizations. The section also allows DOL to enter into 
     contracts with public or private entities to teach all or 
     portions of TAP.

[[Page H7654]]

       Senate Bill
       The Senate Bill contains no similar provision.
       House Bill
       The House Bill contains no similar provision.
       Compromise Agreement
       Section 224 of the Compromise Agreement would amend section 
     1144(d) of title 10, U.S.C., to clarify that when DOL enters 
     into contracts with private entities that they have 
     experience in teaching courses on private sector culture, 
     resume writing, career networking, and training on job search 
     technologies, or in academic readiness and educational 
     opportunities. It is the Committees' view that when DOL 
     contracts for TAP services pursuant to section 223 of the 
     Compromise Agreement they should ensure that the contractors 
     have pertinent expertise in providing quality services to TAP 
     participants. The Committees also recognize that many 
     servicemembers are using their Post-
     9/11 GI Bill benefits soon after they are discharged, and 
     believe that having TAP instructors provide more information 
     on the type of educational choices that are available to 
     these servicemembers is an effective way to increase use of 
     the Post-9/11 GI Bill and to encourage educational choices 
     that are in line with the servicemember's career goals or 
     intents.


  IMPROVED ACCESS TO APPRENTICESHIP PROGRAMS FOR MEMBERS OF THE ARMED 
       FORCES WHO ARE BEING SEPARATED FROM ACTIVE DUTY OR RETIRED

       Current Law
       Under section 1144 of title 10, U.S.C., TAP furnishes 
     career counseling, assistance in identifying employment and 
     training opportunities, help in obtaining such employment and 
     training, and other related information and services to 
     members of the Armed Forces who are being separated from 
     active duty, and the spouses of such members. However, it is 
     not explicit what types of training are authorized to 
     facilitate a servicemember's transition.
       Senate Bill
       Section 14 of S. 951, as reported, would amend section 1144 
     of title 10, U.S.C., by adding at the end a new subsection 
     that would authorize DOD and DHS to permit a member of the 
     Armed Forces eligible for assistance under the section to 
     participate in a pre-apprenticeship program or an 
     apprenticeship program.
       Such a program would be required to be registered under the 
     Act of August 1937 (commonly known as the `National 
     Apprenticeship Act'; 50 Stat. 664, chapter 663; 29 U.S.C. 50 
     et seq.) The section would also authorize DOD and DHS to 
     permit an eligible member to participate in a pre-
     apprenticeship program that provides credit toward a program 
     registered under the Act of August 1937. Any such 
     apprenticeship or pre-apprenticeship program would be 
     required to provide participating servicemembers with the 
     education, training, and services necessary to transition 
     to meaningful employment that leads to economic self-
     sufficiency.
       House Bill
       The House Bill contains no similar provision.
       Compromise Agreement
       Section 225 of the Compromise Agreement follows the Senate 
     Bill.


              REPORT ON THE TRANSITION ASSISTANCE PROGRAM

       Current Law
       There is currently no statutory requirement for the 
     Comptroller General to complete a study on TAP.
       Senate Bill
       Section 7(b) of S. 951, as reported, would require DOL to 
     enter into a contract with a private entity for audits of 
     TAP. Such audits would be required to measure the 
     effectiveness of TAP, and the contractor would be required to 
     report on the findings of the audit and make recommendations, 
     which DOL would be required to implement, to improve TAP.
       House Bill
       Section 205 of H.R. 2433, as amended, requires that within 
     one year of enactment that the Comptroller General of the 
     United States conduct a review of TAP and its effectiveness.
       Compromise Agreement
       Section 226 of the Compromise Agreement generally follows 
     the House Bill in that it requires a review to be completed 
     by the Comptroller General. However the agreement requires 
     that the study be completed within two years of enactment.

Subtitle C--Improving the Transition of Veterans to Civilian Employment


  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

       Current Law
       Under section 1631 of the Wounded Warrior Act (title XVI of 
     Public Law (P.L.) 110-181), VA's authority to provide 
     rehabilitation and vocational benefits to members of the 
     Armed Forces with severe injuries or illnesses will expire on 
     December 31, 2012.
       Senate Bill
       Section 2 of S. 951, as reported, would amend section 
     1631(b)(2) of the Wounded Warrior Act by extending through 
     December 31, 2014, VA's authority to provide rehabilitation 
     and vocational benefits to certain severely wounded active-
     duty servicemembers in the same manner as provided to 
     veterans.
       House Bill
       The House Bill contain no similar provision.
       Compromise Agreement
       Section 231 of the Compromise Agreement follows the Senate 
     Bill. It is the view of the Committees that a two-year 
     extension of VA's authority is necessary to ensure that 
     severely wounded active-duty servicemembers have continued 
     and uninterrupted access to rehabilitation and vocational 
     benefits.


    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

       Current Law
       Under section 3116 of title 38, U.S.C., VA is authorized to 
     make payments to employers for providing on-job training to 
     veterans who have been rehabilitated to the point of 
     employability to promote the development and establishment of 
     employment and training for veterans who have participated in 
     VA's vocational rehabilitation and employment programs. VA 
     provides these benefits to veterans with service-connected 
     disabilities to enable them to obtain suitable employment.
       Senate Bill
       Section 3 of S. 951, as reported, would amend section 3116 
     of title 38 U.S.C, by striking the requirement that veterans 
     be rehabilitated to the point of employability before VA is 
     authorized to make payments to employers for providing on-job 
     training.
       House Bill
       The House Bill contain no similar provision.
       Compromise Agreement
       Section 232 of the Compromise Agreement follows the Senate 
     Bill. This change will enable VA to incentivize employers to 
     provide training and employment opportunities to a broader 
     number of veterans and allow veterans to obtain on-job 
     training and experience while they are still in 
     rehabilitation.


    TRAINING AND REHABILITATION FOR VETERANS WITH SERVICE-CONNECTED 
 DISABILITIES WHO HAVE EXHAUSTED RIGHTS TO UNEMPLOYMENT BENEFITS UNDER 
                               STATE LAW

       Current Law
       Under sections 3102 and 3103 of title 38 U.S.C., veterans 
     who have a service connected disability rating of at least 20 
     percent and have an employment handicap or have a disability 
     rating of at least ten percent and have serious employment 
     handicap are eligible for vocational rehabilitation benefits. 
     Eligible veterans are entitled, generally, to 48 months of 
     benefits during the 12-year, post discharge period. These 
     limitations can be extended under certain circumstances.
       Senate Bill
       Section 4 of S. 951, as reported, would amend section 3102 
     of title 38, U.S.C., to entitle certain veterans, who have 
     completed a rehabilitation program, as set forth under 
     chapter 31, to up to 24 months of additional vocational 
     rehabilitation and employment benefits if they meet certain 
     requirements.
       Under section 4, a person who has completed a chapter 31 
     rehabilitation program would be entitled to an additional 
     rehabilitation program if the person meets the current 
     requirements for entitlement to a chapter 31 rehabilitation 
     program and has, under State or Federal law, exhausted all 
     rights to regular unemployment compensation with respect to a 
     benefit year, has no rights to regular compensation with 
     respect to a week, is not receiving compensation with respect 
     to such week under the unemployment compensation laws of 
     Canada, and begins such additional rehabilitation program 
     within six months of the date of such exhaustion. Under this 
     section, a person would be considered to have exhausted 
     rights to regular unemployment compensation under State law 
     when no payments of regular unemployment compensation may be 
     made under such law because the person has received all 
     regular unemployment compensation available based on 
     employment or wages during a base period, or such person's 
     rights to compensation have been terminated by reason of the 
     expiration of the benefit year.
       House Bill
       The House Bill contains no similar provision.
       Compromise Agreement
       Section 233 of the Compromise Agreement follows the Senate 
     Bill. The Committees realize that many veterans who were 
     rehabilitated have had difficulty in finding and maintaining 
     employment. The Committees understand that unemployed 
     service-connected veterans who have passed their current 
     eligibility for vocational rehabilitation benefits could 
     benefit from additional vocational rehabilitation and 
     employment services while seeking meaningful employment. The 
     agreement limits the amount of assistance to 12 months, 
     provides an effective date of June 1, 2012 and a sunset date 
     of March 31, 2014. In addition, the agreement includes a 
     review of the program and its outcomes by the Government 
     Accountability Office (GAO). It is the intent of the 
     Committees that enrollment in this program be considered a 
     last resort for unemployed and disabled veterans who have 
     exhausted other federal training and unemployment benefit 
     resources.


   COLLABORATIVE VETERANS' TRAINING, MENTORING, AND PLACEMENT PROGRAM

       Current Law
       Under Chapter 41, of title 38, U.S.C., the Department of 
     Labor is authorized to provide job counseling, training, and 
     placement services to veterans.

[[Page H7655]]

       Senate Bill
       Section 8 of S. 951, as reported, would amend chapter 41 of 
     title 38, U.S.C., by inserting after section 4104 a new 
     section, 4104A, which would require DOL to award grants to 
     eligible non-profit organizations to provide training and 
     mentoring for eligible veterans who seek employment. Under 
     this provision, DOL would award grants to not more than three 
     organizations, for contract periods of two years.
       The section would require DOL to ensure that the recipients 
     of such grants collaborate with the appropriate DVOPS and 
     LVERs, and the appropriate State Workforce Investment boards 
     and local boards for the areas to be served by the grant 
     recipients. DOL would also be required to ensure that grant 
     recipients facilitate placement in employment that leads to 
     economic self-sufficiency for veterans who have completed 
     training.
       To be eligible for such grants, a non-profit organization 
     would be required to submit an application to DOL. The 
     application must include information describing how the 
     organization will engage in the collaboration discussed 
     herein, provide training that facilitates job placement for 
     veterans, and provide mentorship for each veteran receiving 
     training.
       Section 8 would also require DOL to prepare and submit to 
     the House and Senate Veterans' Affairs Committees a report 
     that describes the process for awarding grants, the 
     recipients of such grants, and the collaboration described 
     herein. DOL would provide this report not later than six 
     months after the date of enactment of the Hiring Heroes Act 
     of 2011.
       Additionally, not later than 18 months after the date of 
     enactment, DOL would be required under this section to 
     conduct an assessment of the performance of the grant 
     recipients, DVOPS, and LVERs in carrying out activities under 
     this section. Section 8 also would authorize 
     appropriations of $4,500,000 for each of Fiscal Years 2012 
     and 2013.
       House Bill
       The House Bill contains no similar provision.
       Compromise Agreement
       Section 234 of the Compromise Agreement generally follows 
     the Senate Bill with the addition of the Senate Committee on 
     Health, Education, Labor, and Pension and House Committee on 
     Education and Workforce to the list of Committees that DOL is 
     required to submit the assessment required under subsection 
     (d)(2).


   APPOINTMENT OF HONORABLY DISCHARGED MEMBERS AND OTHER EMPLOYMENT 
                               ASSISTANCE

       Current Law
       Chapter 33 of title 5, U.S.C., sets forth the examination, 
     certification, and appointment process for individuals 
     seeking to enter the civil and competitive services in the 
     Executive branch. The Veterans Recruitment Act authorizes 
     non-competitive appointment for eligible veterans to 
     positions up to the GS-11 level, or equivalent. The Veterans 
     Employment Opportunities Act (VEOA) can be used to appoint 
     those entitled to veterans' preference or veterans who have 
     at least 3 years of active military service to permanent 
     positions in the competitive civil service. Under sections 
     2108 and 3309(1) of title 5, U.S.C., a veteran must have a 
     disability rating to establish ten-point preference 
     eligibility for a service-connected disability.
       Senate Bill
       Section 10 of S. 951, as reported, would amend chapter 33 
     of title 5, U.S.C., by creating a new section, 3330d, which 
     would allow the head of an Executive agency to appoint an 
     honorably discharged servicemember to a position in the civil 
     service, without regard to certain civil service authorities, 
     within the 180 days following such member's separation from 
     service.
       Section 10 would also require the Office of Personnel 
     Management (OPM) to designate agencies to establish a program 
     to provide employment assistance to members of the Armed 
     Forces who are being separated from active duty and to ensure 
     such programs are coordinated with TAP. Each designated 
     agency would be required to consult with OPM and act through 
     its Veterans Employment and Placement Office (VEPO) in order 
     to establish the employment assistance program, which would 
     include assistance to members of the Armed Forces seeking 
     employment with that agency. Under the program, the agency 
     would also provide servicemembers with information regarding 
     its employment assistance program and would promote the 
     recruitment, hiring, training and development, and retention 
     of such servicemembers and veterans by the agency. If a 
     designated agency does not have a VEPO, the agency would be 
     required to select an appropriate office of the agency to 
     carry out the employment assistance program.
       House Bill
       The House Bill contains no similar provision.
       Compromise Agreement
       Section 235 of the Compromise Agreement generally follows 
     the Senate Bill with modifications. The Committees expect 
     that enactment of this section would further support 
     servicemembers' seamless transition from the Armed Forces 
     into the civil service by granting veteran preference prior 
     to discharge. The Committees also recognize that certain 
     servicemembers are unable to receive a ten-point preference 
     because of VA's lengthy claims processing system and 
     achieving the ten-point preference granted to disabled 
     veterans will smooth the transition to civilian life.
       The agreement strikes all of subsection (a) of S. 951, as 
     reported, regarding agency authority to directly appoint 
     veterans within 180 days of separation from the military and 
     inserts new language that amends section 2108 of title 5, 
     U.S.C., that allows a servicemember to submit paperwork to 
     Federal hiring managers to certify that they expect to be 
     discharged under honorable conditions. This certification 
     would allow the hiring manager to consider the servicemember 
     as a veteran who qualifies for veteran preference for the 
     purpose of a competitive appointment to a civil service job. 
     A similar certification would be authorized for disabled 
     veterans. Servicemembers would be permitted to submit these 
     certifications to hiring managers within 120 days of their 
     discharge. Section 235(b) of the Compromise Agreement follows 
     subsection 10(b) of S. 951, as reported.
       A seamless transition from military service to a Federal 
     job opening benefits not only servicemembers, but also the 
     Federal Government. It means that a servicemember can 
     potentially leverage the skills he or she gained while on 
     active duty and apply them as a member of the civil service. 
     The Federal Government benefits from hiring veterans as it 
     allows the Federal Government to continue to receive services 
     from individuals in whom the Federal Government has already 
     invested resources for training. Additionally, this allows 
     the Federal Government to employ individuals with a proven 
     history in Federal service.


 DEPARTMENT OF DEFENSE PILOT PROGRAM ON WORK EXPERIENCE FOR MEMBERS OF 
                   THE ARMED FORCES ON TERMINAL LEAVE

       Current Law
       There is no current statute that provides outside work 
     experience to members of the Armed Forces on terminal leave.
       Senate Bill
       Section 12 of S. 951, as reported, would authorize DOD to 
     establish a pilot program to assess the feasibility and 
     advisability of providing to certain servicemembers on 
     terminal leave work experience with civilian employees and 
     contractors of DOD. The program would facilitate a covered 
     servicemember's transition from active duty into the civilian 
     labor market.
       Under this section, an eligible servicemember would be any 
     individual who (1) is a member of the Armed Forces; (2) DOD 
     expects to be discharged or separated from service in the 
     Armed Forces and is on terminal leave; (3) DOD determines has 
     skills that can be used to provide services to DOD that are 
     considered critical to the success of its mission; and (4) 
     DOD determines might benefit from exposure to the civilian 
     work environment in order to facilitate the individual's 
     transition from service in the Armed Forces to employment in 
     the civilian labor market. The pilot program would be carried 
     out during the two-year period beginning on the date of the 
     commencement of the pilot program.
       Not later than 540 days after the date of the enactment of 
     this section, DOD would be required to submit to the 
     Committee on Armed Services and the Committee on Veterans' 
     Affairs of the Senate, and to the Committee on Armed Services 
     and the Committee on Veterans' Affairs of the House of 
     Representatives, a report on the pilot program. The report 
     would include the findings of DOD with respect to the 
     feasibility and advisability of providing such work 
     experience to qualifying servicemembers.
       House Bill
       The House Bill contains no similar provision.
       Compromise Agreement
       Section 236 of the Compromise Agreement generally follows 
     the Senate Bill. The Committees believe these servicemembers 
     could benefit from being given access to outside work 
     experience while technically still on active duty. The 
     Committees hope this opportunity will better prepare the 
     servicemember for their transition to civilian life.


ENHANCEMENT OF DEMONSTRATION PROJECT ON CREDENTIALING AND LICENSING OF 
                                VETERANS

       Current Law
       Under current law, section 4114 of title 38, U.S.C., DOL, 
     through the Assistant Secretary of Veterans Employment and 
     Training (ASVET), is authorized to carry out a demonstration 
     project on credentialing for the purpose of facilitating the 
     seamless transition of servicemembers from active duty to 
     civilian employment. The section provides for the selection 
     of not less than ten MOSs for purposes of the demonstration 
     project. The selected specialties must involve a skill or set 
     of skills required for civilian employment in an industry 
     with high growth or high worker demand.
       After selection of the ten MOSs, DOL is required to consult 
     with Federal, State, and industry stakeholders to identify 
     requirements for civilian credentials, certifications, and 
     licenses that require a skill or set of skills also required 
     by an MOS selected under this section. DOL must analyze these 
     requirements to determine which may be satisfied by the 
     skills, training, or experience acquired by servicemembers 
     with the applicable MOS.
       Following this determination, DOL is required to cooperate 
     with the appropriate government and industry stakeholders to 
     reduce or eliminate any barriers to providing a civilian 
     credential, certification, or license to a veteran who 
     acquired any skill, training, or experience while serving as 
     a member of the Armed Forces with an MOS selected

[[Page H7656]]

     under this section that satisfies the Federal and State 
     requirements for the credential, certification, or license.
       This program was never carried out because funding for the 
     pilot program was authorized only by using unobligated funds 
     for the administration of job counseling, training, and 
     placement services for veterans under section 4106 of title 
     38, U.S.C.
       Senate Bill
       Section 13 of S. 951, as reported, would amend section 4114 
     by mandating that DOL carry out the demonstration project on 
     credentialing. Section 4114 would also be amended to require 
     that the ASVET act in consultation with the Assistant 
     Secretary for Employment and Training when selecting the 
     specialties. The number of specialties to be selected would 
     also be reduced from ten to five.
       The section would also strike subsections (d) through (h) 
     of section 4114, concerning a task force, consultation, 
     contract authority, and duration of the program described 
     under current law. New subsection (d) would require the 
     demonstration project to be carried out within a two-year 
     period beginning on the date of the enactment of this 
     section.
       Section 13 would also require, not later than 180 days 
     after the enactment of the Senate Bills, which the ASVET, in 
     consultation with DOD and VA, study the costs incurred by DOD 
     to train servicemembers for MOSs compared to those incurred 
     by VA and DOL for employment-related assistance to veterans. 
     The study would include an analysis of the costs incurred by 
     VA to provide educational assistance to veterans regarding 
     civilian credentialing and licensing and the costs associated 
     with assistance, vocational training, and counseling to 
     unemployed veterans who were trained in an MOS.
       Within the 180-day period after the enactment of the Senate 
     Bill, the ASVET would also be required to submit to Congress 
     a report on the study carried out. Required provisions of the 
     report would include the findings of the Assistant Secretary 
     with respect to the study and an estimate of the savings that 
     would be realized by VA and DOL if DOD were to tailor its MOS 
     training(s) to satisfy Federal, State, and/or local 
     requirements for certain credentials, certifications, or 
     licenses.
       House Bill
       Section 301 of H.R. 2433 amends section 4114 of title 38, 
     United States Code, to reauthorize the demonstration project 
     and direct the DOL to conduct a study in cooperation with an 
     association of state governors on five to ten military 
     occupations to determine barriers to transitioning those 
     skills to civilian employment and authorizes $180,000 per 
     year to fund the program through September 30, 2014, and sets 
     reporting requirements.
       Compromise Agreement
       Section 237 of the Compromise Agreement contains provisions 
     from both the Senate and House Bills. Subsection (a) 
     generally follows the House Bill by reauthorizing the 
     demonstration project and requires that the study be 
     conducted in cooperation with an association of state 
     governors. The agreement also limits the number of MOS's to 
     be studied to not more than five. Subsection (b) of this 
     section adopt a modified version of the Senate Bill by 
     removing the language that assumes that the Federal 
     Government would experience savings if DOD were to tailor its 
     MOS training(s) to satisfy Federal, State, and/or local 
     requirements for certain credentials, certifications, or 
     licenses.
       DOD has the largest training program in the world, training 
     servicemembers in hundreds of occupations. While many of 
     these occupations center on combat-related duties, the vast 
     majority train servicemembers in support roles, many of which 
     are closely related to skills required in civilian 
     occupations.
       Despite that close relationship, the Committees' have found 
     that servicemembers find it difficult to transition directly 
     into equivalent civilian occupations. There are many reasons 
     for this, but chief among those reasons is the plethora of 
     vastly differing State laws and regulations that directly 
     impede that transition.
       The Committees believes that it is vital to engage the 
     States in an effort to standardize laws and regulations, even 
     on a limited basis, in an effort to smooth servicemembers' 
     transition to civilian employment and retain the value of 
     taxpayer investment in the military training program. The 
     Committees also recognize that an unregulated transition for 
     some specialties may not be achievable, but expects DOL to 
     select military specialties ranging from those that are 
     easier to transition from, to those that are more difficult.


   INCLUSION OF PERFORMANCE MEASURES IN ANNUAL REPORT ON VETERAN JOB 
COUNSELING, TRAINING, AND PLACEMENT PROGRAMS OF THE DEPARTMENT OF LABOR

       Current Law
       Under Section 4107(c) of title 38, U.S.C., VETS is required 
     to provide Congress with an annual report on the activities 
     of the VETS and some performance measure on the state grant 
     program that provides funding for DVOPS and LVERs. VETS is 
     required under the report to provide the number of veterans 
     who were served by states and various other demographic 
     information.
       Senate Bill
       The Senate Bill does not contain a similar provision.
       House Bill
       Section 302 of H.R. 2433, as amended, amends section 
     4107(c) by adding a new paragraph that requires that VETS 
     submit, in its annual report to Congress, certain employment/
     education/training-related data for veterans placed in jobs 
     by DVOPS and LVERs under the State Grant Program.
       Compromise Agreement
       Section 238 of the Compromise Agreement generally follows 
     the House Bill. VETS currently funds the salaries and 
     expenses of DVOPS and LVERs at a cost of over $165 million 
     per year. Unfortunately, there is little statistical 
     accountability built into the system to determine if this 
     funding, objectively, leads to effective results. Changes 
     include modifying the timeline of when VETS needs to follow 
     up with the veteran on their employment status and earnings. 
     These modifications were made to better align this section 
     with DOL's current reporting of performance data from states. 
     The Committees hope this section will provide much needed 
     transparency on this critical program and help promote more 
     effective services to unemployed veterans.


  CLARIFICATION OF PRIORITY OF SERVICE FOR VETERANS IN DEPARTMENT OF 
                        LABOR TRAINING PROGRAMS

       Current Law
       Section 2 of the Jobs for Veterans Act, P.L. 107-288, 
     required DOL to give veterans, and certain spouses of 
     veterans, priority of service in all DOL training programs 
     for which the veteran or spouse would otherwise qualify. 
     DOL's interpretation of this requirement is to use the 
     proportion of representation of veterans in training programs 
     versus the general veteran population as a basis for 
     determining that the priority of service requirement of 
     section 4215 of title 38, U.S.C, is met.
       Senate Bill
       The Senate Bill does not contain a similar provision.
       House Bill
       Section 239 of H.R. 2433, as amended, would amend section 
     4215 of title 38, U.S.C., to clarify the law to ensure that 
     veterans are indeed receiving the priority of service 
     envisioned in P.L. 107-288. The section also requires a new 
     section to the VETS annual report, required under section 
     4107(c) U.S.C., which will track this priority of service at 
     the local level. The section also clarifies that DOL may not 
     use the proportion of representation of veterans in training 
     programs vs. the general veteran population as a basis for 
     determining that the priority of service requirement of 
     section 4215 of title 38, U.S.C, is met.
       Compromise Agreement
       Section 309 of the Compromise Agreement follows the House 
     Bill. The Committees note that there are at least 24 job 
     training programs operated under the Workforce Investment Act 
     (WIA) for which veterans should have priority. Based on DOL 
     statistics, it appears that DOL interprets the priority of 
     service requirement to be met if veterans and other covered 
     persons are shown to be participating in a DOL training 
     program at a percentage roughly equal to the percentage of 
     veterans in the general population (around nine to ten 
     percent). The Committees believe such a proportion-based 
     approach fails to meet both the letter and spirit of the law. 
     While DOL indicates that veterans comprise about eight 
     percent of WIA participants, most WIA programs fall well 
     short of the rate. Therefore, the Committees believe that 
     priority of service must be quantified using the number of 
     qualified veteran applicants and the number trained relative 
     to the total program participants.


EVALUATION OF INDIVIDUALS RECEIVING TRAINING AT THE NATIONAL VETERANS' 
               EMPLOYMENT AND TRAINING SERVICES INSTITUTE

       Current Law
       Section 4109 of title 38, U.S.C, establishes the National 
     Veterans Employment and Training Services Institute (NVTI) to 
     provide standardized training to DVOPS and LVERs in how to 
     assist veterans and disabled veteran in obtaining meaningful 
     employment. However, there is no statutory requirement that 
     DVOPS and LVERs satisfactorily complete the course of 
     training or that the employing State agency be informed of an 
     employee's performance at NVTI.
       Senate Bill
       The Senate Bill does not contain a similar provision.
       House Bill
       Section 304 of H.R. 2433, as amended, would require that at 
     the completion of their training at NVTI, each trainee would 
     be required to take a final examination based on the training 
     at NVTI. The results of this examination would then be sent 
     to the organization or group that sponsored the trainee's 
     attendance at NVTI.
       Compromise Agreement
       Section 240 of the Compromise Agreement follows the House 
     Bill with a small modification that the results of the 
     examination be provided to the organization or group that 
     sponsored the trainee's attendance at NVTI, but that the 
     results not be listed as passing or failing. However, the 
     Committees strongly believe that the information provided to 
     the state or agency should indicate whether the student's 
     performance on the exam meets minimum standards and that a 
     minimal grade should be included. Under the Compromise 
     Agreement the requirements of the section shall not be 
     enforced until 180 days following the passage of the 
     Compromise Agreement.


     REQUIREMENTS FOR FULL-TIME DISABLED VETERANS OUTREACH PROGRAM 
       SPECIALISTS AND LOCAL VETERANS EMPLOYMENT REPRESENTATIVES

       Current Law

[[Page H7657]]

       There is no current statutory requirement that full time 
     DVOPS and LVERs only provide services to veterans and not 
     non-veterans.
       Senate Bill
       The Senate Bill does not contain a similar provision.
       House Bill
       Section 305 of H.R. 2433, as amended, amends sections 4103A 
     and 4104 of title 38 U.SC., to require that full-time DVOPS 
     and LVERs perform only duties related to providing employment 
     assistance to veterans. Section 305 also requires that VETS 
     conduct regular audits to ensure compliance with these 
     requirements and authorizes VETS to reduce the amount of 
     assistance paid to a state to fund DVOPS and LVERs if the 
     state is not in compliance with this section.
       Compromise Agreement
       Section 241 of the Compromise Agreement generally follows 
     the House Bill. The Committees continue to hear that 
     unemployment center managers divert DVOPs and LVERs to non-
     veterans related work. This practice obviously negatively 
     impacts the amount of time that veterans unemployment 
     specialists can spend on serving veterans. The agreement 
     amends the provision to ensure that DVOPS and LVERs are 
     allowed to provide, minor, non-substantive support to non-
     veterans. The Compromise Agreement also gives Governors the 
     option of consolidating DVOP and LVER positions into one job 
     as long as they certify to DOL that no services to veterans 
     will be reduced as part of the consolidation. The Committees 
     expect VETS to provide clear guidance to the states as to 
     what constitutes minor, non-substantive services. The 
     agreement further requires that DOL approve of Governor's 
     consolidation plan. The Committees believe that in a time of 
     fiscal restraint, flexibility in providing service to 
     veterans so long as services do not deteriorate is 
     appropriate. For example, at smaller employer center there 
     may be only one part-time DVOP and one part-time LVER. This 
     provision would permit the consolidation of those two 
     positions into one, thereby reducing administrative overhead 
     while not affecting quality of service to veterans.

     Subtitle D--Improvments to Uniformed Services Employment and 
                          Reemployment Rights


      CLARIFICATION OF BENEFITS OF EMPLOYMENT COVERED UNDER USERRA

       Current Law
       Section 4303 of title 38 U.S.C, for the purposes of the 
     protections under the Uniformed Services Employment and 
     Reemployment Right Act (USERRA), defines `benefit,' `benefit 
     of employment,' or `rights and benefits'.
       Senate Bill
       The Senate Bill does not contain a similar provision.
       House Bill
       Section 401 of H.R. 2433, as amended, would expand the 
     definition of `benefit,' `benefit of employment,' or `rights 
     and benefits' to include the right not to suffer workplace 
     harassment or the creation of a hostile work environment by 
     including, `the terms, conditions, or privileges of 
     employment,' to conform USERRA with the Supreme Court's 
     decision in Mentor Savings Bank vs. Vinson, 477 U.S. 57, 63-
     66 (1986) and DOL's request for such change in its annual 
     report on USERRA.
       Compromise Agreement
       Section 251 of the Compromise Agreement follows the House 
     Bill.

                       Subtitle E--Others Matters


 EXTENSION OF REDUCED PENSION FOR CERTAIN VETERANS COVERED BY MEDICAID 
           PLANS FOR SERVICES FURNISHED BY NURSING FACILITIES

       Current Law
       P.L. 101-508, the Omnibus Budget Reconciliation Act of 
     1990, reduced VA pension for certain veterans in receipt of 
     Medicaid-covered nursing home care to no more than $90 per 
     month, for any period after the month of admission to the 
     nursing care facility. This authority expired on September 
     30, 1992, but has been extended several times, most recently 
     through May 31, 2015, in the Veterans' Benefit Act of 2010.
       Senate Bill
       The Senate Bill does not contain a similar provision.
       House Bill
       Section 507 of H.R. 2433, as amended, would amend section 
     5503(d)(7) of title 38 U.S.C., to extend the authority for 
     limitation of VA pension to $90 per month for certain 
     beneficiaries receiving Medicaid-covered nursing home care 
     from May 31, 2015.
       Compromise Agreement
       Section 262 of the Compromise Agreement follows the House 
     Bill, except that the limitation would be extended until 
     September 30, 2016 and not May 31, 2016.


               REIMBURSEMENT RATE FOR AMBULANCE SERVICES

       Current Law
       Under section 111 of title 38, U.S.C., VA is authorized to 
     reimburse certain veterans for their transportation by 
     ambulance to and from VA medical facilities based on the 
     'actual necessary expense.'
       Senate Bill
       The Senate Bill does not contain a similar provision.
       House Bill
       Section 504 of H.R. 2433, as amended, would amend section 
     111(b)(3) of title 38, U.S.C., by adding a new subparagraph 
     (C), which would authorize VA to pay the lesser of the actual 
     amount charged by the ambulance provider or the applicable 
     amount in the Medicare fee schedule for ambulance services, 
     unless VA has entered into a contract for such transportation 
     with the provider.
       Compromise Agreement
       Section 263 of the Compromise Agreement follows the House 
     Bill.


  EXTENSION OF AUTHORITY FOR SECRETARY OF VETERANS AFFAIRS TO OBTAIN 
   INFORMATION FROM SECRTARY OF TREASURY AND COMMISSIONER OF SOCIAL 
               SECURITY FOR INCOME VERIFICATION PURPOSES

       Current Law
       Section 6103(1)(7)(D)(viii) of title 26, U.S.C., authorizes 
     the release of certain income information by the Internal 
     Revenue Service (IRS) or the Social Security Administration 
     (SSA) to VA for the purposes of verifying the incomes of 
     applicants for VA needs-based benefits. Section 5317(g) of 
     title 38, U.S.C., provides VA with temporary authority to 
     obtain and use this information. Under current law, this 
     authority expires on November 18, 2011.
       Senate Bill
       The Senate Bill does not contain a similar provision.
       House Bill
       The House Bill does not contain a similar provision.
       Compromise Agreement
       Section 264 of the Compromise Agreement extends the 
     authority under section 5317(g) to authorize the release of 
     certain income information by IRS or the SSA to VA for the 
     purposes of verifying the incomes of applicants for VA needs-
     based non-service connected pension benefits through 
     September 30, 2016. The Committees note that this extension 
     was also included in section 3(c) of H.R. 2349, as amended, 
     which passed the House on October 11, 2011, and section 708 
     of S. 914, as reported by the Senate Committee on June 29, 
     2011.


     MODIFICATION OF LOAN GUARANTY FEE FOR CERTAIN SUBSEQUENT LOANS

       Current Law
       Section 3729(b)(2) of title 38, U.S.C., sets forth a loan 
     fee table that lists funding fees to be paid by 
     beneficiaries, expressed as a percentage of the loan amount, 
     for different types of loans guaranteed by VA. Funding fee 
     rates have varied over the years, but with one exception, 
     have remained constant since 2004. All funding fee rates are 
     set to be reduced on November 18, 2011.
       Senate Bill
       Section 15 of S. 951 would amend the fee schedule set forth 
     in section 3729(b)(2) of title 38 U.S.C., by extending VA's 
     authority to collect certain fees and by adjusting the amount 
     of the fees. Specifically, the section would amend-section 
     3729(b)(2)(B)(ii) by striking `January 1, 2004, and before 
     October 1, 2011' and inserting `October 1, 2011, and before 
     October 1, 2014,' and by striking `3.30' both places it 
     appears and inserting `3.00.'
       The section would also amend section 3729(b)(2)(B)(i) by 
     striking `January 1, 2004' and inserting `October 1, 2011' 
     and by striking `3.00' both places it appears and inserting 
     `3.30.' The section would also strike clause (iii) and re-
     designate clause (iv) as clause (iii). Clause (iii), as 
     redesignated, would be amended by striking `October 1, 2013' 
     and inserting `October 1, 2014.'
       House Bill
       Section 501 of H.R. 2433, as amended, would amend the fee 
     schedule set forth in section 3729(b)(2) of title 38 U.S.C., 
     by extending VA's authority to collect certain fees and by 
     adjusting the amount of the fees. Specifically, the section 
     would amend section 3729(b)(2)(A)(iii) and 3729(b)(2)(A)(iv) 
     by striking `November 18, 2011', and inserting `October 1, 
     2017'.
       The section would also amend section 3729(b)(2)(B)(i) by 
     striking `November 18, 2011' and inserting `October 1, 2017'. 
     The section would also strike clauses (ii) and (iii) and 
     redesignate clause (iv) as clause (ii). Clause (ii), as re-
     designated, would be amended by striking `October 1, 2013' 
     and inserting `October 1, 2017.' The section would also amend 
     section 3729(b)(2)(C)(i) and 3729(b)(2)(C)(ii) by striking 
     `November 18, 2011' and inserting `October 1, 2017'. Finally, 
     the section would also amend section 3729(b)(2)(D)(i) and 
     3729(b)(2)(D)(ii) by striking `November 18, 2011' and 
     inserting `October 1, 2017'.
       Compromise Agreement
       Section 265 of the Compromise Agreement follows the House 
     Bill except that instead of inserting `October 1, 2017' for 
     the various extensions the agreement inserts `October 1, 
     2016'.

                       TITLE V--BUDGETARY EFFECTS


                  STATUTORY PAY-AS-YOU-GO ACT OF 2010

       Current Law
       P.L. 111-139, the Statutory Pay-As-You-Go Act (PAYGO Act), 
     requires that most new spending is offset by spending cuts or 
     added revenue elsewhere.
       Senate Bill
       The Senate Bill does not contain a similar provision.
       House Bill
       Section 507 of H.R. 2433, as amended, contains language 
     required by the PAYGO Act in order for the estimate of 
     budgetary effect from the House Budget Committee to be used 
     by the Office of Management and Budget on PAYGO scorecards.
       Compromise Agreement
       Section 501 of the compromise agreement follows the House 
     Bill.

                              {time}  1330

  Mr. LEVIN. I yield 2 minutes to the gentleman from Pennsylvania (Mr. 
Altmire).
  Mr. ALTMIRE. Madam Speaker, I spoke in favor of repealing the 3 
percent withholding provision when it

[[Page H7658]]

passed the House just last month, and I am pleased the Senate has not 
only passed it but has added important provisions to help our brave men 
and women in uniform find work when they return home.
  The amended bill provides retraining assistance to unemployed 
veterans as well as tax credits to businesses that hire unemployed 
veterans, which is a segment of our population that has been especially 
hard-hit by our sluggish economy. An estimated 12 percent of veterans 
who have served since the attacks of September 11 are unemployed. This 
is far above the national average and is not what our Nation's heroes 
deserve.
  Our servicemembers have gone above and beyond for their country, and 
this legislation is one way for Congress to honor their sacrifice and 
to help them succeed here at home. I strongly support this legislation 
and urge my colleagues to vote in its favor.
  Mr. HERGER. Madam Speaker, I yield 2 minutes to the gentleman from 
South Carolina (Mr. Mulvaney), the chairman of the Small Business 
Subcommittee on Contracting and Workforce.
  Mr. MULVANEY. Last week I came to this floor and stood in the well 
and called upon the Senate to do something, which was to take up this 
bill--this bill that had passed out of our subcommittee with tremendous 
bipartisan support and that passed out of this House with bipartisan 
support. It's something that went practically unnoticed nationwide, 
especially in the media.
  I ask the Senate to simply take this bill up because it was not only 
something that the House had supported on a bipartisan basis, but it 
was something that was actually part of the President's jobs bill as 
well. So, in the name of doing the right thing, I come to the House 
floor to thank the Senate for actually doing that. While they're at it, 
they might want to take this opportunity to take up the other 19 jobs 
bills that we've sent them over the course of the last several months.
  The Senate has done the right thing here. They've taken up a bill 
that the House has sent them, a bill that will actually give people the 
opportunity to go back to work. What has happened is that both parties 
have come together to try and figure out ways to give folks exactly 
that opportunity. That same possibility exists another 19 times over in 
the Senate. The Senate has done the right thing with this bill by 
passing it and by sending it back to us. It's going to become law now.
  I call upon the Senate to please do the right thing again and take up 
the 19 bills that we have sent over so that we will have the 
opportunity to do this again before the end of the year.
  Mr. LEVIN. Madam Speaker, I yield myself 15 seconds.
  The problem is that the 19 bills weren't real jobs bills. So now what 
the Senate has sent us back is an addition that is a real jobs bill, 
though not comprehensive.
  I now yield 2 minutes to the gentlelady from New York (Mrs. Maloney).
  Mrs. MALONEY. I thank the gentleman for his leadership, not only on 
the committee but in so many ways in this Congress, and for yielding me 
time.
  Madam Speaker, I rise in strong support of H.R. 674 and of the 
President's veterans jobs bill.
  The 3 percent withholding repeal is very important on its own. This 
was an important bill that will help small business contractors who 
would have experienced significant cash flow problems for day-to-day 
operations had the withholding tax gone into effect. It also provides 
important tax credits to encourage more employers to hire our veterans 
who are out of work. Well over 12 percent of our returning veterans are 
out of work. This bill provides additional education and job training 
for veterans to gain additional skills and to be successful in an 
increasingly competitive job market, and it takes important steps to 
help ease the transition between military service and the civilian 
workforce.
  I am pleased that we are working together to repeal this tax burden 
and help our veterans in a comprehensive way during these tough 
economic times. I am pleased that this portion of the President's jobs 
bill is being enacted today. I thank all who are supporting it.
  Mr. HERGER. Madam Speaker, I have no further requests for time, and I 
reserve the balance of my time.
  Mr. LEVIN. I now, with pleasure, yield 2 minutes to the gentleman 
from Georgia (Mr. Bishop).
  (Mr. BISHOP of Georgia asked and was given permission to revise and 
extend his remarks.)
  Mr. BISHOP of Georgia. I thank the distinguished gentleman for 
yielding.
  Madam Speaker, I would like to thank the Democratic and Republican 
leadership in both the House and the Senate for their timely 
consideration of the VOW to Hire Heroes Act of 2011.
  As the House sponsor of the Hiring Heroes Act provisions that are in 
the bill, I would also like to thank the chairmen and ranking members 
of the House and Senate Veterans' Affairs Committees for their 
outstanding work on this jobs measure, as well as to thank the chairs 
and ranking members of the House Ways and Means Committee.
  Just as this Nation has a responsibility not to leave our soldiers 
behind on the battlefield, we also have an obligation not to forget our 
veterans when they return home.
  Last month the unemployment rate for veterans who fought in Iraq and 
Afghanistan was 12 percent. The youngest of veterans, ages 18 to 24, 
had a 30 percent unemployment rate in October. Among African American 
veterans aged 18 to 24, the jobless rate is a striking 48 percent. 
These numbers, Madam Speaker, are unacceptable. H.R. 674 allows us to 
honor our veterans by ensuring that they have the resources and the 
tools they need to find suitable and sustainable employment.
  I urge my colleagues to support H.R. 674 and to provide our Nation's 
veterans with the employment opportunities that they need and so 
rightly deserve.
  Madam Speaker, as the House sponsor of the Hiring Heroes provisions 
in this bill, I would be remiss if I did not also thank House Veterans' 
Affairs Committee Chair Jeff Miller; House Veterans' Affairs Committee 
Ranking Member Bob Filner; Senate Veterans' Affairs Committee Chair 
Patty Murray; and Senate Veterans' Affairs Committee Ranking Member 
Richard Burr for their outstanding work on this comprehensive 1 
veterans' jobs measure.
  Last week as America celebrated Veterans' Day, patriots all across 
our great nation honored our brave veterans with parades, luncheons, 
and other ceremonies of remembrance. The many sacrifices members of our 
Armed Services have made for the freedoms we currently enjoy certainly 
warrants a national day of recognition and so much more.
  Our patriotic service members have been instrumental in building and 
defending our democracy. We, as a nation, have a responsibility to pay 
tribute to them and preserve the memory of their service in our history 
and in our hearts and minds.
  Just as this nation has a responsibility not to leave our soldiers 
behind on the battlefield, we also must not forget our veterans when 
they return home. In many respects, our soldiers need our help even 
more when they receive their discharge papers and return to civilian 
life.
  Last month, the unemployment rate for veterans who fought in Iraq and 
Afghanistan was 12.1 percent versus 9.1 percent for the U.S. overall. 
The youngest of veterans, age 18 to 24, had a 30.4 percent unemployment 
rate in October, an increase from 18.4 percent a year earlier. Among 
black veterans age 18 to 24, the jobless rate is a striking 48 percent. 
These numbers are unacceptable.
  H.R. 674 allows us to honor our veterans by ensuring they have the 
resources and tools they need to find suitable and sustainable 
employment.
  This wide-ranging legislation combines key components of President 
Obama's American Jobs Act, Chairman Miller's Veterans Opportunity to 
Work Act, and the Hiring Heroes Act. I sponsored the bipartisan Hiring 
Heroes Act in the House and Senator Patty Murray introduced the measure 
in the Senate.
  The bipartisan Hiring Heroes Act provisions included in this 
legislation will ensure that all service members transitioning to 
civilian life receive the job training skills they need to find a job. 
This legislation allows service members to begin the federal employment 
process prior to separation in order to facilitate a smooth transition 
from the military to jobs at the Departments of Veterans Affairs, 
Homeland Security, and other federal agencies in need of our veterans.
  This bill also makes the Transition Assistance Program--an 
interagency workshop coordinated by the Departments of Defense, Labor 
and Veterans Affairs--mandatory for service members moving on to 
civilian life.

[[Page H7659]]

This initiative helps veterans secure 21st Century jobs by providing 
resume writing workshops, job search techniques, interview tips, and 
career counseling.

  Other provisions in the VOW to Hire Heroes Act will provide nearly 
100,000 unemployed veterans with up to one-year of additional 
Montgomery GI Bill benefits to qualify for jobs in high demand sectors. 
In addition, the legislation provides tax incentives of up to $5,600 
for hiring veterans, and up to $9,600 for hiring disabled veterans, if 
the veteran has been looking for work for six months or longer.
  Madam Speaker, we have an obligation to ensure our veterans land on 
their feet when they come home and help them find good paying jobs to 
support their families. These heroes have risked the most for our 
country. They shouldn't be coming home to unemployment checks. That's 
why providing this support to our nation's veterans is simply the right 
thing to do, and I look forward to voting in favor of this 
comprehensive veterans' employment initiative.
  I urge my colleagues to support H.R. 674 and to provide our nation's 
veterans with the employment assistance opportunities that they need 
and so rightly deserve.
  Mr. HERGER. I continue to reserve the balance of my time.
  Mr. LEVIN. Madam Speaker, I yield myself the balance of my time.
  It can be stated very briefly.
  The unemployment rate for veterans is beyond acceptance, and these 
bills hopefully will help. We need to pass more comprehensive 
legislation so that everybody has a chance at a job. For those who are 
unemployed and looking for work, we need to act so that, by next 
February, 2 million people will not be left without unemployment 
insurance.
  But again, these provisions added by the Senate, provisions that were 
part of the President's bill, will help to address this simply 
inappropriate, unacceptable, unsatisfactory rate of employment and 
reemployment for people who have served our country so loyally and so 
well. So I support this bill and urge its passage.
  I yield back the balance of my time.
  Mr. HERGER. Madam Speaker, I yield myself such time as I may consume.
  Today we have an opportunity to encourage job creation by repealing a 
tax that's looming over small businesses and also to improve economic 
opportunities for the men and women who have risked their lives and 
limbs to serve our country in the Armed Forces.
  I urge a strong bipartisan vote for this legislation, and I yield 
back the balance of my time.

                                        Chamber of Commerce of the


                                     United States of America,

                                Washington, DC, November 14, 2011.
       To the Members of the United States House of 
     Representatives: The U.S. Chamber of Commerce, the world's 
     largest business federation representing the interests of 
     more than three million members and organizations of every 
     size, sector, and region, strongly urges you to support H.R. 
     674 as amended, which would fully repeal the burdensome 3% 
     Withholding Tax mandate enacted in Section 511 of the Tax 
     Increase Prevention and Reconciliation Act of 2005 (P.L. 109-
     222).
       H.R. 674 was approved with overwhelming bipartisan support 
     in the U.S. Senate last week. The Senate passed bill adds 
     language to make a technical clarification regarding the 
     existing federal levy program in order to conform to 
     congressional intent and directly address tax delinquency. 
     H.R. 674 originally passed in the U.S. House of 
     Representatives by a vote of 405 to 16 and is supported by 
     the Administration. Given the substantial bipartisan, 
     bicameral support for repealing the 3% withholding tax 
     mandate, the Chamber urges the House to expeditiously approve 
     H.R. 674 as amended to give greater certainty to those 
     impacted.
       Unless repealed before it takes effect on January 1, 2013, 
     the 3% Withholding Tax will have a dramatic, negative impact 
     on millions of honest taxpaying businesses as well as state 
     and local governments. Under this provision, the Internal 
     Revenue Service (IRS) was given new broad sweeping authority 
     to hold hostage 3% of nearly every transaction between the 
     public and private sector--giving the federal government an 
     interest free loan on the backs of many honest taxpayers. 
     This mandate is also anti-stimulus in the sense that it 
     removes money from local economies and sends it to the IRS.
       Additionally, the profit margin for many businesses is 
     often less than 3%, meaning that the withholding tax will 
     create significant cash flow problems for day-to-day 
     operations as well as draining capital that could be used for 
     job creation and business expansion. The 3% Withholding Tax 
     will also drive opportunities away from small businesses as 
     governments look to consolidate their purchasing with larger 
     companies to make it less onerous to comply with the mandate. 
     During these difficult economic times, Congress should be 
     pursuing policies that encourage, not hamper, business growth 
     and job creation in the private sector.
       The U.S. Chamber of Commerce strongly supports H.R. 674 as 
     amended, to fully repeal the 3% Withholding Tax, and urges 
     you to approve this important legislation and send it to the 
     President for his signature.
           Sincerely,
     R. Bruce Josten.
                                  ____

                                            Government Withholding


                                             Relief Coalition,

                                Washington, DC, November 14, 2011.
       To the Members of the United States House of 
     Representatives: The Government Withholding Relief Coalition 
     and its member organizations strongly urge you to vote for 
     H.R. 674 as amended, bipartisan legislation to fully repeal 
     the burdensome 3% Withholding Tax mandate enacted in Section 
     511 of the Tax Increase Prevention and Reconciliation Act of 
     2005 (P.L. 109-222).
       On November 10, 2011, the U.S. Senate emphatically endorsed 
     repeal by approving H.R. 674 as amended by a vote of 95 to 0. 
     The Senate amendment clarifies the existing federal levy 
     program in order to conform to congressional intent and 
     directly address tax delinquency. The Government Withholding 
     Relief Coalition supports this targeted approach that, unlike 
     the 3% Withholding Tax, will not negatively affect honest 
     taxpayers and state and local governments. The underlying 
     bill to repeal the 3% Withholding Tax mandate passed in the 
     U.S. House of Representatives by a vote of 405 to 16 last 
     month. The Administration has endorsed repealing this onerous 
     burden as well. Given the overwhelming bipartisan, bicameral 
     support and the endorsement of the Administration, we call on 
     the House to act expeditiously to approve H.R. 674 as amended 
     to give certainty to those impacted--businesses, doctors, 
     farmers, state and local governments and colleges and 
     universities.
       Unless repealed before it takes effect on January 1, 2013, 
     the 3% Withholding Tax will have a dramatic, negative impact 
     on millions of honest taxpaying businesses as well as state 
     and local governments, health care providers, farmers and 
     colleges and universities. The profit margin for many 
     businesses is often less than 3%, meaning that the 
     withholding tax will create significant cash flow problems 
     for day-to-day operations as well as draining capital that 
     could be used for job creation and business expansion. This 
     mandate is also anti-stimulus in the sense that it removes 
     money from local economies and sends it to the IRS.
       The mandate is already proving costly and will increase 
     exponentially as the implementation deadline moves closer. If 
     this mandate is not repealed, it will cost companies and 
     governments at all levels substantial amounts of money just 
     to prepare to comply with this unnecessary and unfortunate 
     tax provision. These exorbitant expenditures will be at the 
     expense of hiring new employees, expanding businesses, and 
     providing government services at a time when neither the 
     public nor private sector can afford such unnecessary costs.
       The Government Withholding Relief Coalition, which 
     represents all sectors of the economy, believes it is 
     imperative that the 3% Withholding Tax be fully repealed to 
     limit the damaging impacts to our economy. We appreciate 
     bipartisan efforts to repeal it and strongly encourage you to 
     vote for H.R. 674 as amended, to fully repeal the 3% 
     Withholding Tax once and for all.
           Sincerely,
       Government Withholding Relief Coalition.

       Aeronautical Repair Station Association; Aerospace 
     Industries Association; Air Conditioning Contractors of 
     America; Air Transport Association; Airports Council 
     International-North America; America's Health Insurance 
     Plans; American Ambulance Association; American Bankers 
     Association; American Bus Association; American Clinical 
     Laboratory Association; American Concrete Pressure Pipe 
     Association; American Congress on Surveying and Mapping; 
     American Council of Engineering Companies; American Dental 
     Association; American Gas Association; American Health Care 
     Association; American Institute of Architects; American 
     Institute of Certified Public Accountants; American Logistics 
     Association; American Medical Association.
       American Moving and Storage Association; American Nursery 
     and Landscape Association; American Road & Transportation 
     Builders Association; American Society of Civil Engineers; 
     American Society of Landscape Architects; American 
     Subcontractors Association; American Supply Association; 
     American Traffic Safety Services Association; American 
     Trucking Associations; Armed Forces Marketing Council; 
     Associated Builders and Contractors; Associated Equipment 
     Distributors; Associated General Contractors of America; 
     Association of Management Consulting Firms; Association of 
     National Account Executives; Association of School Business 
     Officials International; Baltimore Washington Corridor 
     Chamber; Biotechnology Industry Organization; Business and 
     Institutional Furniture Manufacturers Association; CTIA-The 
     Wireless AssociationTM; California Association of 
     Public Purchasing Officers.
       Coalition for Government Procurement; Coalition of Higher 
     Education Assistance Organizations; Colorado Motor Carriers 
     Association; Computing Technology Industry Association; 
     Construction CPAs/Consultants Association (CICPAC); 
     Construction Contractors Association; Construction Employers' 
     Association of California; Construction

[[Page H7660]]

     Financial Management Association; Construction Industry Round 
     Table; Construction Management Association of America; Design 
     Professionals Coalition; Edison Electric Institute; 
     Electronic Security Association; Engineering & Utility 
     Contractors Association; Federation of American Hospitals; 
     Financial Executives International; Finishing Contractors 
     Association; Gold Coast Hispanic Chamber of Commerce; 
     Government Finance Officers Association; Hawaii 
     Transportation Association.
       Heating, Airconditioning & Refrigeration Distributors 
     International; IPC--Association Connecting Electronics 
     Industries; Independent Electrical Contractors, Inc; 
     International City/County Management Association; 
     International Council of Employers of Bricklayers and Allied 
     Craftworkers; International Foodservice Distributors 
     Association; International Municipal Lawyers Association; 
     Large Public Power Council; Management Association for 
     Private Photogrammetric Surveyors; Mason Contractors 
     Association of America; Massachusetts Motor Transportation 
     Association; Mechanical Contractors Association of America; 
     Medical Group Management Association; Messenger Courier 
     Association of the Americas; Miami Dade County; Mississippi 
     Trucking Association; Modular Building Institute; Motor 
     Transport Association of Connecticut; Munitions Industrial 
     Base Task Force; National Asphalt Pavement Association.
       National Association for Self-Employed; National 
     Association of College & University Business Officers; 
     National Association of Counties; National Association of 
     Credit Management; National Association of Educational 
     Procurement; National Association of Energy Services 
     Companies; National Association of Government Contractors; 
     National Association of Manufacturers; National Association 
     of Minority Contractors; National Association of State 
     Auditors, Comptrollers and Treasurers; National Association 
     of State Chief Information Officers; National Association of 
     State Procurement Officials; National Association of Surety 
     Bond Producers; National Association of Water Companies; 
     National Association of Wholesaler-Distributors; National 
     Automobile Dealers Association; National Beer Wholesalers 
     Association; National Corn Growers Association; National 
     Council for Public Procurement and Contracting; National 
     Defense Industrial Association.
       National Electrical Contractors Association; National 
     Electrical Manufacturers Association; National Emergency 
     Equipment Dealers Association; National Federation of 
     Independent Business; National Institute of Governmental 
     Purchasing; National Italian-American Business Association; 
     National League of Cities; National Mining Association; 
     National Precast Concrete Association; National Propane Gas 
     Association; National Office Products Alliance; National 
     Railroad Construction & Maintenance Association; National 
     Ready Mixed Concrete Association; National Roofing 
     Contractors Association; National School Transportation 
     Association; National Small Business Association; National 
     Society of Professional Engineers; National Society of 
     Professional Surveyors; National Utility Contractors 
     Association; National Wooden Pallet and Container 
     Association.
       New Jersey Chamber of Commerce; North-American Association 
     of Uniform Manufacturers & Distributors; North Coast Builders 
     Exchange; Office Furniture Dealers Alliance; Oregon Trucking 
     Association; Owner Operator Independent Drivers Association; 
     Petroleum Marketers Association of America; Plumbing-Heating-
     Cooling Contractors--National Association; Printing 
     Industries of America; Professional Services Council; 
     Regional Legislative Alliance of Ventura and Santa Barbara 
     Counties; Retail Energy Supply Association; Santa Rosa 
     Chamber of Commerce; Security Industry Association; Service 
     Disabled Veteran Owned Small Business Council; Sheet Metal 
     and Air Conditioning Contractors National Association, Inc.; 
     Shipbuilders Council of America; Small Business & 
     Entrepreneurship Council; Small Business Legislative Council.
       South Carolina Trucking Association; TechAmerica; Tennessee 
     Trucking Association; Textile Rental Services Association of 
     America; The Association of Union Constructors; The Distilled 
     Spirits Council of the U.S.; The Financial Services 
     Roundtable; U.S. Chamber of Commerce; United States Telecom 
     Association; Utah Trucking Association; Veterans Business 
     Institute; Veterans Entrepreneurship Task Force; Water and 
     Wastewater Equipment Manufacturers Association; Women 
     Construction Owners & Executives; Women Impacting Public 
     Policy.

  Mr. KIND. Madam Speaker, I rise today in support of H.R. 674, the 
Three Percent Withholding Repeal and Job Creation Act.
  The Three Percent Withholding Repeal and Job Creation Act repeals a 
burdensome tax law that President Bush and Congressional Republicans 
passed in 2006. Fortunately, the law has never gone into effect because 
Democrats have fought it for years, and the Senate was successful in 
voting to repeal it last week. Estimates project that the tax actually 
costs more to implement than it raises in new revenue. Thus, it only 
hurts our local businesses, especially in an underperforming economy, 
by restricting cash flow and causing administrative headaches. 
Eliminating such a barrier will allow our businesses to better use 
their assets to grow and hire, which is exactly what our economy needs 
right now.
  Currently, many contractors and small businesses are strapped for 
cash and doing everything they can to keep their doors open. In 
addition to repealing a burdensome tax, the Three Percent Withholding 
Repeal and Job Creation Act also provides incentives to grow our 
stagnant economy by helping businesses all over the country hire 
unemployed veterans. Because veterans returning from Iraq and 
Afghanistan are facing 12.1 percent unemployment, the Three Percent 
Withholding Repeal and Job Creation Act contains critical veterans' 
jobs initiatives that will not only incentivize hiring, but will spur 
economic growth by putting veterans back to work and investing in small 
businesses that are struggling in this stagnant economy.
  In a fiscally responsible way, the Three Percent Withholding Repeal 
and Job Creation Act provides meaningful tax incentives to hire 45,000 
unemployed veterans in 2012 and 54,000 each in 2013 and 2014. It not 
only helps veterans who have been unemployed for more than six months, 
but also those who have been unemployed for over four weeks. Businesses 
are further incentivized to hire veterans returning to the workforce 
with service-connected disabilities after six months of looking for a 
job.
  In addition to providing incentives to hire veterans, the Three 
Percent Withholding Repeal and Job Creation Act provides transition 
assistance through a mandatory program for servicemembers returning to 
civilian life. Such a vital program will assist returning 
servicemembers in securing 21st Century jobs through career counseling 
and resume-writing workshops.
  By helping our veterans transition back to civilian life and by 
creating opportunities for them to obtain meaningful employment, we 
show our thanks for their selfless service to our country. Furthermore, 
we instill faith in our local businesses to grow and hire by providing 
them support and resources to get through this tough economic time.
  This bill is one small but important step in upholding our commitment 
to support the troops that have proudly defended our Nation. I'm proud 
to support this legislation for our veterans and our small businesses 
and government contractors.
  Mr. DINGELL. Madam Speaker, today the House is considering 
legislation that will repeal the onerous requirement that federal, 
state, and local government entities withhold three percent of payments 
to government contractors. H.R. 674 will also take the first step in 
passing a piece of the President's American Jobs Act, by providing tax 
credits for businesses that hire unemployed or disabled veterans, and 
will help provide servicemembers who are leaving the service with job 
training and other skills necessary for starting a career outside of 
the military.
  While I support these initiatives, I am disappointed that my friends 
in the House and Senate are pairing two bipartisan pieces of 
legislation with legislation that will change the intent of the 
Affordable Care Act and roll back eligibility for middle-class 
Americans to qualify for tax credits in the new Health Insurance 
Exchanges or Medicaid and CHIP.
  As a veteran myself, I want nothing more than to help veterans to 
find gainful employment after the military and I believe that as we 
draw near the end of our engagement in Iraq and Afghanistan the need 
for this assistance is paramount. I will also gladly help my colleagues 
on the other side of the aisle to repeal their own three percent 
withholding requirement which we have delayed year after year. What I 
do not support is how we will pay for this repeal--on the backs of 
middle class Americans who as a result may find themselves paying more 
for their health care.
  This legislation will add Social Security income back into the 
calculation of the Modified Adjusted Gross Income or MAGI for purposes 
of determining eligibility for the premium tax credits in the exchange 
and for Medicaid and CHIP. Some have suggested that excluding 
nontaxable Social Security benefits in the MAGI definition was a 
glitch. This is not so. The Affordable Care Act used the definition of 
MAGI that excluded nontaxable Social Security benefits because it is 
typical when determining eligibility for tax benefits.
  Changing the MAGI definition to add Social Security income back in 
will make 500,000 to 1 million people ineligible for Medicaid and Chip 
and ineligible for premium tax credits. This will impose high costs for 
health care on low-income and middle-income families, early retirees 
and the disabled, and consequently could shift them out of Medicaid 
coverage or require increased out-of-pocket costs for health coverage. 
This goes against the very intent of the Affordable Care Act.
  Madam Speaker, I oppose the sort of legislating that is before us 
today as I believe each chamber should be allowed to work its will on 
separate items, rather than be forced to accept bad policy sandwiched 
between pieces of bipartisan legislation. This goes against the pledge 
to openness and transparency my Republican colleagues have claimed to 
support.

[[Page H7661]]

While I will lend my support to the legislation before us, I cannot 
continue to accept such abuses of procedure.
  Mr. BRADY of Texas. Madam Speaker, I rise in support of H.R. 674, 
repealing the requirement that all levels of government withhold 3 
percent of payments owed to their contractors throughout the United 
States.
  If not repealed, small businesses operating on the slimmest of 
margins would see their operating budgets once again taking a hit from 
the Federal Government.
  It is important to remember that our neighbors and friends work at 
these businesses.
  Their jobs depend on these businesses having the necessary cash flow 
to pay their wages so they can raise their families and pay their 
bills.
  And we, as a country, are depending on these same businesses to 
create new jobs which will help our unemployed friends and neighbors, 
and move our economy forward.
  I am also supportive of simplifying the process for employers to hire 
our unemployed and disabled veterans through the Work Opportunity Tax 
Credit program. The one-year extension and simplification will help 
bring more certainty to the hiring process for our job creators looking 
to hire veterans who have more than proven their worth to anyone 
looking for productive employees.
  A vote in support of H.R. 674 is a vote to remove impediments to 
American job creation and expand opportunities for our veterans. I urge 
my colleagues to support the bill.
  Mr. VAN HOLLEN. Madam Speaker, three weeks ago, this House passed 
legislation to repeal the 3% withholding rule for contractors doing 
business with the federal government and an adjustment to the formula 
used to calculate Medicaid and tax credit eligibility under the 
Affordable Care Act.
  Today's bill--sent back to us by the Senate--packages these two 
initiatives with the Veterans Hiring Tax Credit contained in the 
American Jobs Act and several other provisions designed to support 
veterans looking for work.
  Madam Speaker, it's about time. Finally, if only in a small way, we 
are moving legislation to accelerate job creation in this Congress. 
With unemployment rates for today's returning veterans hovering above 
12%, these steps are the least we can take to support our service 
members transitioning to civilian life. Frankly, I would go further and 
complete consideration of the rest of the American Jobs Act without 
further delay.
  As regards the rest of the legislation, it is no secret that I would 
prefer savings from the adjustment to the Affordable Care Act formula 
be repurposed to other pressing health care needs. That being said, I 
support the adjustment and have long been a cosponsor of the bill to 
repeal the onerous 3% withholding requirement.
  Accordingly, I will cast a ``yes'' vote for today's legislation.
  Mr. HOLT. Madam Speaker, I rise today in support of H.R. 674. The 
provisions contained in this amended legislation are a long time coming 
and I am pleased to see this body finally consider a measure that will 
have a tangible effect for Americans who are unemployed and 
underemployed. More importantly, these measures will help a particular 
group of Americans who I think we all agree deserve our full support: 
our Nation's veterans. Right now, men and women returning stateside 
from Iraq and Afghanistan face an unemployment rate of over 12 percent. 
Nearly a quarter of a million of recently returned veterans are 
jobless. This is unconscionable. If we can give our men and women the 
tools they need to succeed in combat, then certainly we must help them 
succeed when they return home. Moreover, veterans make excellent 
employees--I know because I have two working for me. Helping our 
veterans find jobs will put some of the finest men and women in the 
country into the American workforce. It's a win-win situation.
  This measure provides tax credits for businesses who hire veterans--
up to $5,600 if the veteran has been out of a job for more than six 
months. It also provides a $9,600 tax credit if the veteran has a 
service-connected disability. It expands Montgomery G.I. benefits for 
education and training opportunities for older veterans. And it 
includes provisions to encourage separating service members to seek 
employment in civilian federal service.
  Madam Speaker, it is worth noting that many of these are measures 
that President Obama proposed in the American Jobs Act. I am pleased 
that we are considering these specific provisions today, but dozens of 
other provisions in the Jobs Act would help put an even greater number 
of veterans back to work: small business tax cuts, supporting teachers 
and first responders, rebuilding and expanding our infrastructure. We 
must do more, and by advancing the proposals currently idling in this 
body, we can do more.
  I urge my colleagues to join me in supporting this measure to help 
put our Nation's veterans back to work.
  The SPEAKER pro tempore. The question is on the motion offered by the 
gentleman from Michigan (Mr. Camp) that the House suspend the rules and 
concur in the Senate amendment to the bill, H.R. 674.
  The question was taken.
  The SPEAKER pro tempore. In the opinion of the Chair, two-thirds 
being in the affirmative, the ayes have it.
  Mr. HERGER. Madam Speaker, on that I demand the yeas and nays.
  The yeas and nays were ordered.
  The SPEAKER pro tempore. Pursuant to clause 8 of rule XX, further 
proceedings on this question will be postponed.

                          ____________________