[Congressional Record Volume 159, Number 65 (Thursday, May 9, 2013)]
[Senate]
[Pages S3332-S3337]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. SANDERS:
  S. 922. A bill to require the Secretary of Labor to carry out a pilot 
program on providing wage subsidies to employers who employ certain 
veterans and members of the Armed Forces and require the Secretary of 
Veterans Affairs to carry out a pilot program on providing career 
transition services to young veterans, and for other purposes; to the 
Committee on Veterans' Affairs.
  Mr. SANDERS. Mr. President, as the Chairman of the Veterans' Affairs 
Committee, I have pledged to improve and expand employment training and 
development programs for our Nation's servicemembers and veterans.
  While our country continues with its economic recovery, we must 
ensure that veterans are not left behind. Veterans possess the skills, 
the discipline, and the leadership necessary to succeed in a 21st 
century workforce. Coupled with an array of practical skills, it would 
seem that transitioning to civilian employment after separation from 
service would be effortless. Yet we continue to find high unemployment 
rates among veterans, especially the youngest generation. Through their 
service and sacrifice, each of our Nation's veterans have earned a fair 
shot at a job,

[[Page S3333]]

a fair shot at supporting their families, and a fair shot to prosper 
and resume their lives back home.
  Although unemployment numbers are getting better for everyone, there 
is still reason for concern and work to be done. The unemployment rate 
for our youngest veterans, ages 18-24, transitioning from the military, 
averaged 20 percent in 2012, compared to 15 percent for non-veterans 
between the ages 18-24. Furthermore, in 2012, the unemployment rate 
among post-9/11 veterans was nearly 10 percent, while the unemployment 
rate for all veterans and non-veterans was less than 8 percent. This 
trend continues into this year, with our younger post-9/11 veterans 
encountering the most difficulty finding employment.
  Businesses in the private sector have shown an interest in hiring 
veterans, but often find that veterans who apply lack industry specific 
experience to compete with non-veteran candidates. While it is 
important to ensure we provide programs to help veterans translate 
their military skills into the civilian sector, there remains a need 
to: equip veterans with civilian skills and experience necessary to 
meet the challenges of competing with those who have years of 
experience in the civilian workforce; find employers who understand 
military skills; and assist in helping them to readjust back to their 
local communities.
  The Department of Defense reports that approximately one in five 
enlisted servicemembers separating from active duty have a military-
learned skill that is not easily transferable to a civilian occupation. 
Many of these servicemembers will need to transition into a civilian 
career field that is different than their military occupation.
  We have a responsibility to those who served in the military, and 
that includes providing practical solutions. I am proud to introduce 
legislation, The Veterans Equipped for Success Act of 2013, that would 
provide our veterans the tools necessary to transition to the civilian 
workforce.
  First, the legislation, establishes a three-year pilot program that 
will partner certain unemployed veterans with employers in the private-
sector. In general, the program will provide employers a wage subsidy, 
up to 75 percent of the wages paid, capped at $14,000 a year, and 
incentives to hire these veterans. Not only does the program stimulate 
job creation, but will provide potentially more than 150,000 veterans 
with the valuable work experience and civilian skills they need to 
obtain long-term employment.
  Second, The Veterans Equipped for Success Act of 2013 focuses on 
providing employment opportunities and civilian work experience to our 
younger veterans ages 18-30. Under another three-year pilot program, up 
to 50,000 participating veterans, at a time, would be paired with 
private-sector employers for one year and provided a salary from the 
Department of Veterans Affairs. Employers would provide veterans 
mentorship, job shadowing, and valuable civilian work experience, while 
having the opportunity to learn about the work veterans performed in 
the military and the skills they acquired. The legislation also helps 
veterans reintegrate into their communities and give back to other 
veterans.
  We have made a solemn commitment to aid veterans by creating job 
opportunities and providing them with the necessary skills to succeed. 
There is clearly a need for improved employment opportunities for 
veterans, particularly our younger transitioning veterans. This 
legislation would help veterans meet the challenges of competing in the 
civilian workforce by filling gaps not addressed by current programs. 
We owe it to our veterans to ensure they have the opportunity to gain 
valuable skills and work experience to assist them in successfully 
transitioning into the civilian workforce.
  Mr. President, I ask unanimous consent that the text of the bill be 
printed in the Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                 S. 922

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

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Veterans Equipped for 
     Success Act of 2013''.

     SEC. 2. PILOT PROGRAM ON PROVISION OF SUBSIDIES TO EMPLOYERS 
                   FOR EMPLOYMENT OF CERTAIN VETERANS AND MEMBERS 
                   OF THE ARMED FORCES.

       (a) In General.--Commencing not later than January 1, 2014, 
     the Secretary of Labor shall, acting through the Assistant 
     Secretary of Labor for Veterans' Employment and Training and 
     in collaboration with the Secretary of Veterans Affairs, 
     carry out a pilot program to assess the feasibility and 
     advisability of providing subsidies to eligible employers to 
     employ eligible individuals--
       (1) to provide eligible individuals with valuable work 
     experience;
       (2) to increase the skills of eligible individuals; and
       (3) to assist eligible individuals in obtaining long-term 
     employment.
       (b) Eligible Individual.--For purposes of the pilot 
     program, an eligible individual is an individual who--
       (1) is--
       (A) a veteran of the Armed Forces who was discharged or 
     released from service therein under conditions other than 
     dishonorable; or
       (B) a member of a reserve component of the Armed Forces 
     (including the National Guard) who--
       (i) served on active duty in the Armed Forces (other than 
     active duty for training) for more than 180 consecutive days 
     during the two-year period ending on the date of commencement 
     of the participation in the pilot program; and
       (ii) is not serving on active duty on the date of 
     commencement of participation in the pilot program;
       (2) is, at the time at which the individual applies for 
     participation in the pilot program--
       (A) 18 years of age or more but not more than 34 years of 
     age; or
       (B) 55 years of age or more but not more than 64 years of 
     age;
       (3) is not in receipt of compensation under chapter 11 of 
     title 38, United States Code, by reason of unemployability;
       (4) is not enrolled on the date of commencement of 
     participation in the pilot program in a Federal or State job 
     training program; and
       (5) is considered by the Secretary to be unemployed or 
     underemployed.
       (c) Eligible Employer.--
       (1) In general.--For purposes of the pilot program, an 
     eligible employer is an employer determined by the Secretary 
     to meet such criteria for participation in the pilot program 
     as the Secretary shall establish for purposes of the pilot 
     program, except that an employer may not be determined to be 
     an eligible employer for that purpose if the employer--
       (A) has been investigated or subject to a case or action by 
     the Federal Trade Commission during the 180-day period ending 
     on the date the employer would otherwise commence 
     participation in the pilot program;
       (B) has not been in good standing with a State business 
     bureau during the period described in subparagraph (A);
       (C) is an agency of the Federal Government or a State or 
     local government;
       (D) is delinquent with respect to payment of any taxes or 
     employer contributions described under sections 3301 and 
     3302(a)(1) of the Internal Revenue Code of 1986 (26 U.S.C. 
     3301 and 3302(a)(1)) or with respect to any related reporting 
     requirement;
       (E) has previously participated in the pilot program and, 
     as determined by the Secretary, failed to abide by a 
     requirement of the pilot program;
       (F) does not provide assurances to the Secretary at the 
     time the employer would otherwise commence participation in 
     the pilot program that the employer will comply under the 
     pilot program with the requirements for non-displacement of 
     current employees specified in paragraph (2); or
       (G) receives more than 75 percent of its revenue from the 
     Federal Government or a State or local government.
       (2) Non-displacement of current employees.--The 
     requirements specified in this paragraph are the following:
       (A) That an employer shall not use an individual 
     participating in the pilot program to displace any employee 
     of the employer at the time of commencement of participation 
     in the pilot program from employment or any employment 
     benefits, including a partial displacement (such as a 
     reduction in the hours of non-overtime work, wages, or 
     employment benefits).
       (B) That an employer shall not permit an individual 
     participating in the pilot program to perform work activities 
     related to any job for which--
       (i) any other individual is on layoff from the same or any 
     substantially-equivalent position; or
       (ii) the employer has terminated the employment of any 
     employee or otherwise reduced the workforce of the employer 
     with the intention of filling or partially filling the 
     vacancy so created with the work activities to be performed 
     by the individual participating in the pilot program.
       (C) That an employer shall not create a job for an 
     individual participating in the pilot program in a manner 
     that will infringe in any way upon the opportunities for 
     promotion of individuals employed by the employer on the date 
     of the employer's commencement of participation in the pilot 
     program.
       (D) That--

[[Page S3334]]

       (i) an employer shall not, by means of assigning work 
     activities under the pilot program, impair an existing 
     contract for services or a collective bargaining agreement; 
     and
       (ii) work activities that would be inconsistent with the 
     terms of a collective bargaining agreement shall not be 
     undertaken by an individual participating in the pilot 
     program without the written concurrence of the labor 
     organization that is signatory to the collective bargaining 
     agreement.
       (d) Duration and Number of Participants.--
       (1) Duration.--The Secretary shall carry out the pilot 
     program during the three-year period beginning on the date of 
     the commencement of the pilot program.
       (2) Number of participants.--Not more than 50,000 eligible 
     individuals may concurrently participate in the pilot 
     program.
       (e) Locations.--
       (1) In general.--The Secretary shall carry out the pilot 
     program in four locations selected by the Secretary for 
     purposes of the pilot program from among areas with 
     populations the Secretary determines have high concentrations 
     of veterans.
       (2) Consultation with secretary of veterans affairs.--In 
     selecting locations under paragraph (1), the Secretary of 
     Labor may consult with the Secretary of Veterans Affairs, 
     particularly with respect to determining which areas have 
     populations with high concentrations of veterans.
       (f) Subsidies.--
       (1) In general.--For each eligible employer approved by the 
     Secretary to participate in the pilot program who employs on 
     a full-time basis an eligible individual approved by the 
     Secretary to participate in the pilot program, the Secretary 
     shall provide a subsidy for the employment of such eligible 
     individual by such eligible employer during such period as--
       (A) the eligible individual is employed by the eligible 
     employer;
       (B) the eligible individual is participating in the pilot 
     program; and
       (C) the eligible employer is participating in the pilot 
     program.
       (2) Amount.--
       (A) In general.--Except as provided in subparagraph (B), a 
     subsidy provided by the Secretary under the pilot program to 
     an eligible employer for the employment of an eligible 
     individual shall be an amount equal to--
       (i) except as provided in clause (ii), 60 percent of the 
     basic pay provided by the eligible employer under the pilot 
     program to the eligible individual; and
       (ii) in the case in which the eligible employer provides 
     employment that includes an apprenticeship (which must be 
     approved for purposes of the pilot program not later than two 
     years after the date of the commencement of the pilot 
     program), 75 percent of the basic pay provided by the 
     eligible employer under the pilot program to the eligible 
     individual.
       (B) Maximum amount.--Except as provided in subparagraph 
     (D), the aggregate amount of subsidy provided under the pilot 
     program to an eligible employer for the employment of an 
     eligible individual may not exceed--
       (i) except as provided in clause (ii), $11,000; or
       (ii) in the case described in subparagraph (A)(ii), 
     $14,000.
       (C) Disbursement of payments.--
       (i) Payments on quarterly basis.--Except as provided in 
     clause (ii), subsidies paid to an eligible employer under 
     subparagraph (A) shall be paid to the eligible employer on a 
     quarterly basis.
       (ii) Payments on monthly basis.--In order to relieve 
     financial burden on an eligible employer participating in the 
     pilot program whom the Secretary determines has few 
     employees, the Secretary may pay subsidies under subparagraph 
     (A) to such employer on a monthly basis as the Secretary 
     considers appropriate.
       (D) Additional hiring incentive.--If an eligible employer 
     who received a subsidy under the pilot program for the 
     employment of an eligible individual hires such eligible 
     individual on a full-time basis following the completion of 
     the participation of such eligible individual in the pilot 
     program, the Secretary shall pay such eligible employer an 
     additional amount equal to 10 percent of the aggregate amount 
     of subsidy paid to the eligible employer under subparagraph 
     (A) during the last six months of such eligible individual's 
     employment with such eligible employer while participating in 
     the pilot program. Any amount paid under this subparagraph 
     shall not apply against the aggregate maximum amount 
     specified in subparagraph (B).
       (E) Apprenticeships.--The Secretary may establish 
     guidelines or criteria for the approval or disapproval of 
     apprenticeships for purposes of the pilot program.
       (3) Duration.--A subsidy provided to an eligible employer 
     to employ an eligible individual under the pilot program 
     shall be for the lesser of--
       (A) a period of one year; and
       (B) the duration of such eligible individual's employment 
     with the eligible employer.
       (4) Consideration concerning receipt of concurrent 
     subsidies.--In the case of an eligible employer who is 
     already receiving one or more subsidies under the pilot 
     program for the employment of one or more eligible 
     individuals, when determining whether to provide an 
     additional subsidy to such employer to employ an additional 
     eligible individual, the Secretary may take into 
     consideration, if after hiring such additional eligible 
     individual, the number of eligible individuals for whom the 
     employer is receiving a subsidy under the pilot program would 
     constitute more than 10 percent of the workforce of the 
     eligible employer.
       (5) Minimum wage.--No eligible employer may receive a 
     subsidy under the pilot program for the employment of an 
     eligible individual if the rate of pay for such employment is 
     less than the greater of the rate specified in section 
     6(a)(1) of the Fair Labor Standards Act of 1938 (29 U.S.C. 
     206(a)(1)) or the rate specified in the applicable State 
     minimum wage law.
       (6) Sense of congress on exclusion of certain employment.--
     It is the sense of Congress that an employer should not be 
     provided a subsidy under the pilot program for employment of 
     an eligible individual in a position under a contract, grant, 
     or cooperative agreement with the Federal Government or a 
     State or local government that involves functions that are so 
     inherently governmental that the position would not provide 
     the eligible individual with experience, training, or skills 
     necessary for employment in the private sector in a position 
     not involving such functions.
       (g) Participation.--
       (1) Application.--
       (A) In general.--An eligible employer or an eligible 
     individual seeking to participate in the pilot program shall 
     submit to the Secretary an application therefor at such time 
     and in such manner as the Secretary shall specify.
       (B) Elements.--Except as provided in subparagraph (C), each 
     application submitted under subparagraph (A) shall contain 
     such information as the Secretary may specify.
       (C) Requirements of eligible employers.--An application 
     submitted by an eligible employer under subparagraph (A) 
     shall include assurance that the eligible employer will 
     comply with the requirements for non-displacement of current 
     employees specified in subsection (c)(2) under the pilot 
     program.
       (2) Selection.--
       (A) In general.--The Secretary shall review each 
     application submitted by an applicant under paragraph (1) and 
     approve or disapprove the applicant for participation in the 
     pilot program.
       (B) Employer selection considerations.--In approving or 
     disapproving an eligible employer for participation in the 
     pilot program, the Secretary may consider past performance of 
     the eligible employer with respect to the following:
       (i) Job training, basic skills training, and related 
     activities.
       (ii) Fiscal accountability.
       (iii) Demonstration of a high potential for growth and 
     long-term job creation.
       (C) Considerations concerning selection of for-profit and 
     not-for-profit employers.--The Secretary may consider 
     approving both for-profit and not-for-profit employers who 
     are eligible employers for participation in the pilot 
     program.
       (D) Considerations concerning participation of small 
     business concerns.--In selecting eligible employers for 
     participation in the pilot program, the Secretary may 
     consider the extent to which small business concerns are 
     afforded opportunities to participate in the pilot program.
       (3) Early termination or separation of eligible individual 
     participants by secretary.--If the Secretary determines that 
     an eligible individual participating in the pilot program is 
     not making satisfactory attendance in employment, or has been 
     removed from placement for misconduct, the Secretary may 
     terminate such eligible individual's status as a participant 
     in the pilot program and bar such eligible individual from 
     further participation in the pilot program.
       (4) Employment status.--
       (A) Compensation for work injuries.--An eligible individual 
     employed by an eligible employer who receives a subsidy for 
     such employment under the pilot program shall be deemed, 
     during the period of such subsidy, an employee of the United 
     States for the purposes of the benefits of chapter 81 of 
     title 5, United States Code, but not for the purposes of laws 
     administered by the Office of Personnel Management.
       (B) Health benefits.--For purposes of the Patient 
     Protection and Affordable Care Act (Public Law 111-148), an 
     eligible individual employed by an eligible employer shall be 
     considered an employee of the Department of Labor and not the 
     eligible employer during such period as the eligible employer 
     receives a subsidy under the pilot program for the employment 
     of such eligible individual.
       (h) Transportation Support for Participating Eligible 
     Individuals.--In accordance with criteria established by the 
     Secretary for purposes of the pilot program, the Secretary 
     may pay an allowance based upon mileage, of any eligible 
     individual whose employment is subsidized under the pilot 
     program not in excess of 75 miles to or from a facility of 
     the eligible employer or other place in connection with such 
     employment.
       (i) Grants to Eligible Entities.--
       (1) In general.--The Secretary may award grants to not more 
     than four eligible entities to assist the Secretary in 
     carrying out the pilot program.
       (2) Eligible entities.--For purposes of the pilot program, 
     an eligible entity is a nonprofit organization.
       (3) Considerations.--In awarding grants under this 
     subsection, the Secretary may consider whether an eligible 
     entity--

[[Page S3335]]

       (A) has an understanding of the unemployment problems of 
     eligible individuals and members of the Armed Forces 
     transitioning from service in the Armed Forces to civilian 
     life;
       (B) is familiar with a location selected under subsection 
     (e) and has an understanding of employment in such location 
     and employment assistance available to eligible individuals 
     in such location; and
       (C) has the capability to assist the Secretary in 
     administering effectively the pilot program and provide 
     employment assistance to eligible individuals.
       (4) Use of funds.--Amounts received by a recipient of a 
     grant under this subsection may be used as follows:
       (A) To assist the Secretary in carrying out the pilot 
     program.
       (B) To recruit eligible employers and eligible individuals 
     to participate in the pilot program.
       (C) To coordinate and implement job placement and other 
     employer outreach activities in connection with the pilot 
     program.
       (D) To carry out such other activities as the Secretary 
     considers appropriate for purposes of the pilot program.
       (j) Additional Pilot Program Requirements.--Under the pilot 
     program, the Secretary shall--
       (1) develop an objective assessment process that will 
     identify the work experience, skill levels, and interests of 
     eligible individuals participating in the pilot program;
       (2) ensure that employment and counseling services are 
     available to eligible individuals participating in the pilot 
     program, including by connecting eligible individuals with 
     services available to the eligible individuals through State 
     or local employment service or other public agencies;
       (3) develop and implement procedures for evaluating job 
     placement and employment of eligible individuals 
     participating in the pilot program; and
       (4) carry out such other activities as the Secretary 
     considers appropriate for purposes of the pilot program.
       (k) Outreach.--The Secretary of Labor and the Secretary of 
     Veterans Affairs shall jointly conduct a program of outreach 
     to inform eligible employers and eligible individuals about 
     the pilot program and the benefits of participating in the 
     pilot program.
       (l) Minimization of Administrative Burden on Participating 
     Employers.--The Secretary of Labor shall take such measures 
     as may be necessary to minimize administrative burdens 
     incurred by eligible employers in participating in the pilot 
     program.
       (m) Reports.--
       (1) In general.--Not later than 45 days after the 
     completion of the first year of the pilot program and not 
     later than 180 days after the completion of the second and 
     third years of the pilot program, the Secretary shall submit 
     to Congress a report on the pilot program.
       (2) Contents.--Each report submitted under paragraph (1) 
     shall include the following:
       (A) An evaluation of the pilot program.
       (B) The number and characteristics of individuals 
     participating in the pilot program.
       (C) The number and characteristics of employers 
     participating in the pilot program.
       (D) The number and types of positions of employment in 
     which eligible individuals were placed under the pilot 
     program.
       (E) The number of individuals who obtained long-term full-
     time employment positions as a result of the pilot program, 
     the hourly wage and nature of such employment, and if 
     available, whether such individuals were still employed in 
     such positions three months after obtaining such positions.
       (F) A description of the outreach activities undertaken to 
     raise awareness of the pilot program by potential eligible 
     individuals and eligible employers, and an assessment of the 
     effectiveness of such activities.
       (G) An assessment of the feasibility and advisability of 
     providing subsidies to eligible employers to employ eligible 
     individuals.
       (H) An assessment of the effect of the pilot program on 
     earnings of eligible individuals and the employment of 
     eligible individuals.
       (I) Such recommendations for legislative and administrative 
     action as the Secretary considers appropriate to improve the 
     pilot program, to expand the pilot program, or to improve the 
     employment of eligible individuals.
       (n) Relation to Other Federal Assistance.--Notwithstanding 
     any other provision of law, wages received by an individual 
     that are subsidized under the pilot program may not be used 
     in any calculation to determine the eligibility of such 
     individual for any Federal program for the purpose of 
     obtaining child care assistance.
       (o) Funding Limitations.--
       (1) Wage subsidies.--Not less than 95 percent of amounts 
     appropriated or otherwise made available for the pilot 
     program shall be used to provide subsidies under subsection 
     (f).
       (2) Administration.--Not more than 5 percent of amounts 
     appropriated or otherwise made available for the pilot 
     program may be used to administer the pilot program.
       (p) Coordination With Work Opportunity Tax Credit.--Section 
     51 of the Internal Revenue Code of 1986 is amended by adding 
     at the end the following new subsection:
       ``(j) Coordination With Pilot Program on Provision of 
     Subsidies to Employers for Employment of Certain Veterans and 
     Members of Armed Forces.--No credit shall be allowed under 
     subsection (a) with respect to any wages paid to a qualified 
     veteran if the taxpayer has received a subsidy under section 
     2(f) of the Veterans Equipped for Success Act of 2013 with 
     respect to such qualified veteran.''.
       (q) Definitions.--In this section:
       (1) Apprenticeship.--The term ``apprenticeship'' means a 
     program of apprenticeship approved by the Office of 
     Apprenticeship of the Department of Labor or a State 
     apprenticeship as meeting the standards of apprenticeship 
     published by the Secretary of Labor pursuant to section 2 of 
     the Act of August 16, 1937 (popularly known as the ``National 
     Apprenticeship Act'') (29 U.S.C. 50a).
       (2) Full-time basis.--The term ``full-time basis'', with 
     respect to employment, means employment of a minimum of 30 
     hours a week.
       (3) Small business concern.--The term ``small business 
     concern'' has the meaning given that term under section 3(a) 
     of the Small Business Act (15 U.S.C. 632(a)).

     SEC. 3. PILOT PROGRAM ON PROVISION OF CAREER TRANSITION 
                   SERVICES TO YOUNG VETERANS.

       (a) In General.--Commencing not later than January 1, 2014, 
     the Secretary of Veterans Affairs shall, in collaboration 
     with the Secretary of Labor, carry out a pilot program to 
     assess the feasibility and advisability of establishing a 
     program to provide career transition services to eligible 
     individuals--
       (1) to provide eligible individuals with work experience in 
     the civilian sector;
       (2) to increase the marketable skills of eligible 
     individuals;
       (3) to assist eligible individuals in obtaining long-term 
     employment; and
       (4) to assist in integrating eligible individuals into 
     their local communities.
       (b) Eligible Individuals.--For purposes of the pilot 
     program, an eligible individual is an individual who--
       (1) is--
       (A) a veteran of the Armed Forces who was discharged or 
     released from service therein under conditions other than 
     dishonorable; or
       (B) a member of a reserve component of the Armed Forces 
     (including the National Guard) who--
       (i) served on active duty in the Armed Forces (other than 
     active duty for training) for more than 180 consecutive days 
     during the two-year period ending on the date of the 
     commencement of the individual's participation in the pilot 
     program; and
       (ii) is not serving on active duty on the date of the 
     commencement of the individual's participation in the pilot 
     program;
       (2) is unemployed or underemployed, as determined by the 
     Secretary; and
       (3) is, at the time at which the individual applies for 
     participation in the pilot program, 18 years of age or older, 
     but not more than 30 years of age.
       (c) Duration and Number of Participants.--
       (1) Duration.--The Secretary shall carry out the pilot 
     program during the three-year period beginning on the date of 
     the commencement of the pilot program.
       (2) Number of participants.--Not more than 50,000 eligible 
     individuals may concurrently participate in the pilot 
     program.
       (d) Locations.--
       (1) In general.--The pilot program shall be carried out in 
     four locations selected by the Secretary for purposes of the 
     pilot program and in accordance with the provisions of this 
     subsection.
       (2) Consideration of areas of high concentrations of young 
     eligible individuals.--In selecting locations under paragraph 
     (1), the Secretary shall consider areas with populations the 
     Secretary determines have high concentrations of eligible 
     individuals, particularly those with high concentrations of 
     eligible individuals who are age 25 or younger.
       (e) Career Transition Services.--For purposes of the pilot 
     program, career transition services are the following:
       (1) Internships under subsection (f).
       (2) Mentorship and job-shadowing under subsection (g).
       (3) Volunteer opportunities under subsection (h).
       (4) Professional skill workshops under subsection (i).
       (5) Skills assessment under subsection (j).
       (6) Additional services under subsection (k).
       (f) Internships.--
       (1) In general.--For each eligible individual whom the 
     Secretary approves for participation in the pilot program, 
     the Secretary shall attempt to place such eligible individual 
     in an internship on a full-time basis with an eligible 
     employer whom the Secretary has approved for participation in 
     the pilot program.
       (2) Eligible employer.--For purposes of the pilot program, 
     an eligible employer is an employer determined by the 
     Secretary to meet such criteria for participation in the 
     pilot program as the Secretary shall establish for purposes 
     of the pilot program, except that an employer may not be 
     determined to be an eligible employer for that purpose if the 
     employer--
       (A) has been investigated or subject to a case or action by 
     the Federal Trade Commission during the 180-day period ending 
     on the date the employer would otherwise commence 
     participation in the pilot program;
       (B) has not been in good standing with a State business 
     bureau during the period described in subparagraph (A);
       (C) is an agency of the Federal Government or a State or 
     local government;

[[Page S3336]]

       (D) is delinquent with respect to payment of any taxes or 
     employer contributions described under sections 3301 and 
     3302(a)(1) of the Internal Revenue Code of 1986 (26 U.S.C. 
     3301 and 3302(a)(1)) or with respect to any related reporting 
     requirement;
       (E) has previously participated in the pilot program and, 
     as determined by the Secretary, failed to abide by a 
     requirement of the pilot program; or
       (F) receives more than 75 percent of its revenue from the 
     Federal Government or a State or local government.
       (3) Duration.--Each internship under the pilot program 
     shall be for a period of one year.
       (4) Wages.--
       (A) In general.--Except as provided in subparagraph (B), 
     the Secretary shall furnish pay to each eligible individual 
     participating in an internship under the pilot program for 
     the duration of such participation at a rate equal to the 
     greater of--
       (i) the rate specified in section 6(a)(1) of the Fair Labor 
     Standards Act of 1938 (29 U.S.C. 206(a)(1)) or the rate 
     specified in the applicable State minimum wage law; and
       (ii) if the eligible individual was receiving unemployment 
     compensation before being placed in the internship, the rate 
     of such unemployment compensation.
       (B) Maximum amount.--An eligible individual may not receive 
     an aggregate amount of more than $30,000 in pay from the 
     Secretary under this paragraph.
       (5) Employment status.--
       (A) Compensation for work injuries.--An eligible individual 
     placed in an internship with an eligible employer under the 
     pilot program shall be deemed, during the period of such 
     internship under the pilot program, an employee of the United 
     States for the purposes of the benefits of chapter 81 of 
     title 5, United States Code, but not for the purposes of laws 
     administered by the Office of Personnel Management.
       (B) Health benefits.--For purposes of the Patient 
     Protection and Affordable Care Act (Public Law 111-148), an 
     eligible individual placed in an internship with an eligible 
     employer under the pilot program shall be considered an 
     employee of the Department of Veterans Affairs and not the 
     eligible employer during the period of such internship under 
     the pilot program.
       (6) Relation to other federal assistance.--Notwithstanding 
     any other provision of law, pay received by an individual 
     under this subsection may not be used in any calculation to 
     determine the eligibility of such individual for any Federal 
     program for the purpose of obtaining child care assistance.
       (7) Limit on number of intern placements.--In the case of 
     an eligible employer at which one or more eligible 
     individuals have been placed for an internship under the 
     pilot program, the Secretary may consider, in determining 
     whether to place an additional eligible individual at such 
     employer for an internship under the pilot program, whether 
     if after such additional placement, the number of eligible 
     individuals placed in internships at such employer under the 
     pilot program would constitute more than 10 percent of the 
     eligible employer's workforce. For purposes of the previous 
     sentence, being an intern under the pilot program placed at 
     the eligible employer shall be considered part of the 
     employer's workforce.
       (g) Mentorship and Job-shadowing.--
       (1) In general.--As a condition of an eligible employer's 
     participation in the pilot program and the placement of an 
     eligible individual in an internship at the eligible 
     employer, the eligible employer shall provide each eligible 
     individual placed in an internship at the eligible employer 
     under the pilot program with at least one mentor who is an 
     employee of the eligible employer.
       (2) Job-shadowing and career counseling.--To the extent 
     practicable, a mentor assigned to an eligible individual 
     participating in the pilot program shall provide such 
     eligible individual with job shadowing and career counseling.
       (h) Volunteer Opportunities.--
       (1) In general.--As a condition on participation in the 
     pilot program, each eligible individual who participates in 
     the pilot program shall, not less frequently than once each 
     month in which the eligible individual participates in the 
     pilot program, engage in a qualifying volunteer activity in 
     accordance with guidelines the Secretary shall establish.
       (2) Qualifying volunteer activities.--For purposes of this 
     subsection, a qualifying volunteer activity is any activity 
     the Secretary considers related to providing assistance to, 
     or for the benefit of, a veteran. Such activities may include 
     the following:
       (A) Outreach.
       (B) Assisting an organization recognized by the Secretary 
     for the representation of veterans under section 5902 of 
     title 38, United States Code, on a volunteer basis.
       (C) Service benefitting a veteran in a State home or a 
     Department of Veterans Affairs medical facility.
       (D) Service benefitting a veteran at an institution of 
     higher education.
       (i) Professional Skills Workshops.--
       (1) In general.--The Secretary shall provide eligible 
     individuals participating in the pilot program with workshops 
     for the development and improvement of the professional 
     skills of such eligible individuals.
       (2) Tailored.--The workshops provided by the Secretary 
     shall be tailored to meet the particular needs of eligible 
     individuals participating in the pilot program as determined 
     under subsection (j).
       (3) Topics.--The workshops provided to eligible individuals 
     participating in the pilot program may include workshops for 
     the development of such professional skills as the Secretary 
     considers appropriate, which may include the following:
       (A) Written and oral communication skills.
       (B) Basic word processing and other computer skills.
       (C) Interpersonal skills.
       (4) Manner of presentation.--Workshops on particular topics 
     shall be provided through such means as may be appropriate, 
     effective, and approved of by the Secretary for purposes of 
     the pilot program. Such means may include use of electronic 
     communication.
       (5) Assessments.--The Secretary shall conduct an assessment 
     of a participant in a workshop conducted under this 
     subsection to assess the participant's knowledge acquired as 
     a result of participating in the workshop.
       (j) Skills Assessment.--
       (1) In general.--Under the pilot program, the Secretary 
     shall develop and implement an objective assessment of 
     eligible individuals participating in the pilot program to 
     assist in the placement of such individuals in internships 
     under subsection (f) and to assist in the tailoring of 
     workshops under subsection (i).
       (2) Elements.--The assessment may include an assessment of 
     the skill levels and service needs of each participant, which 
     may include a review of basic professional entry-level 
     skills, prior work experience, employability, and the 
     individual's interests.
       (k) Additional Services.--
       (1) In general.--Except as provided in paragraph (2), the 
     Secretary shall, under the pilot program, furnish the 
     following services to an eligible individual participating in 
     the pilot program when assessment under subsection (j) 
     indicates such services are appropriate:
       (A) Counseling, such as job counseling and career 
     counseling.
       (B) Job search assistance.
       (C) Follow-up services with participants that are offered 
     unsubsidized employment by the employer with whom they were 
     assigned.
       (D) Transportation, as described in paragraph (2).
       (2) Referrals.--In lieu of furnishing a service to an 
     eligible individual under paragraph (1), the Secretary may 
     refer such eligible individual to another Federal, State, or 
     local government program that provides such service.
       (3) Transportation.--In accordance with criteria 
     established by the Secretary for purposes of the pilot 
     program, the Secretary may pay an allowance based upon 
     mileage, of any eligible individual placed in an internship 
     under the pilot program not in excess of 75 miles to or from 
     a facility of the eligible employer or other place in 
     connection with such internship.
       (l) Participation.--
       (1) Application.--
       (A) In general.--An eligible employer, eligible individual, 
     or member of the Armed Forces described in subparagraph (B) 
     seeking to participate in the pilot program shall submit to 
     the Secretary of Veterans Affairs an application therefor at 
     such time, in such manner, and containing such information as 
     the Secretary shall specify.
       (B) Members of armed forces.--A member of the Armed Forces 
     described in this subparagraph is a member of the Armed 
     Forces who--
       (i) is expected, within 180 days, to be discharged or 
     released from service in the active military, naval, or air 
     service under conditions other than dishonorable; and
       (ii) has not accepted an offer of employment that would 
     begin after such discharge or release.
       (2) Selection.--
       (A) In general.--The Secretary shall review each 
     application submitted by an applicant under paragraph (1) and 
     approve or disapprove the applicant for participation in the 
     pilot program.
       (B) Consideration of employer performance.--In approving or 
     disapproving an eligible employer for participation in the 
     pilot program, the Secretary may consider past performance of 
     the eligible employer with respect to the following:
       (i) Job training, basic skills training, and related 
     activities.
       (ii) Fiscal accountability.
       (iii) Demonstration of a high potential for growth and 
     long-term job creation.
       (C) Considerations concerning selection of for-profit and 
     not-for-profit employers.--The Secretary may consider 
     approving both for-profit and not-for-profit employers who 
     are eligible employers for placement of interns under the 
     pilot program.
       (D) Considerations concerning participation of small 
     business concerns.--In selecting eligible employers for 
     participation in the pilot program, the Secretary may 
     consider the extent to which small business concerns are 
     afforded opportunities to participate in the pilot program.
       (m) Grants.--
       (1) In general.--The Secretary may award grants to not more 
     than four eligible entities to assist the Secretary in 
     carrying out the pilot program.
       (2) Eligible entities.--For purposes of the pilot program, 
     an eligible entity is a nonprofit organization.
       (3) Considerations.--In awarding grants under this 
     subsection, the Secretary may consider whether an eligible 
     entity--

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       (A) has an understanding of the unemployment problems of 
     eligible individuals and members of the Armed Forces 
     transitioning from service in the Armed Forces to civilian 
     life;
       (B) is familiar with one or more locations selected under 
     subsection (d); and
       (C) have the capability to assist the Secretary in 
     administering effectively the pilot program and providing 
     career transition services to eligible individuals.
       (4) Use of funds.--Amounts received by a recipient of a 
     grant under this subsection may be used as the Secretary 
     considers appropriate for purposes of the pilot program, 
     including as follows:
       (A) To assist the Secretary in carrying out the pilot 
     program.
       (B) To recruit eligible employers and eligible individuals 
     to participate in the pilot program.
       (C) To match eligible individuals participating in the 
     pilot program with internship opportunities at eligible 
     employers participating in the pilot program.
       (D) To coordinate and carry out job placement and other 
     employer outreach activities.
       (n) Outreach.--The Secretary of Veterans Affairs and the 
     Secretary of Labor shall jointly carry out a program of 
     outreach to inform eligible employers and eligible 
     individuals about the pilot program and the benefits of 
     participating in the pilot program.
       (o) Awards for Outstanding Contributions to Pilot 
     Program.--
       (1) In general.--Each year of the pilot program, the 
     Secretary of Veterans Affairs may recognize one or more 
     eligible employers or one or more eligible individuals 
     participating in the pilot program for demonstrating 
     outstanding achievement in carrying out or in contributing to 
     the success of the pilot program.
       (2) Criteria.--The Secretary shall establish such selection 
     procedures and criteria as the Secretary considers 
     appropriate for the award of recognition under this 
     subsection.
       (p) Minimization of Administrative Burden on Participating 
     Employers.--The Secretary shall take such measures as may be 
     necessary to minimize administrative burdens incurred by 
     eligible employers due to participation in the pilot program.
       (q) Reports.--
       (1) In general.--Not later than 45 days after the 
     completion of the first year of the pilot program and not 
     later than 180 days after the completion of the second and 
     third years of the pilot program, the Secretary shall submit 
     to Congress a report on the pilot program.
       (2) Contents.--Each report submitted under paragraph (1) 
     shall include the following:
       (A) An evaluation of the pilot program.
       (B) The number and characteristics of participants in the 
     pilot program.
       (C) The number and types of internships in which eligible 
     individuals were placed under the pilot program.
       (D) The number of individuals who obtained long-term full-
     time unsubsidized employment positions as a result of the 
     pilot program, the hourly wage and nature of such employment, 
     and if available, whether such individuals were still 
     employed in such positions three months after obtaining such 
     positions.
       (E) An assessment of the feasibility and advisability of 
     providing career transition services to eligible individuals.
       (F) An assessment of the effect of the pilot program on 
     earnings of eligible individuals and the employment of 
     eligible individuals.
       (G) Such recommendations for legislative and administrative 
     action as the Secretary may have to improve the pilot 
     program, to expand the pilot program, or to improve the 
     employment of eligible individuals.
       (r) Funding Limitations.--
       (1) Wages for internships.--Not less than 95 percent of 
     amounts appropriated or otherwise made available for the 
     pilot program shall be used to provide pay under subsection 
     (f)(4).
       (2) Administration.--Not more than 5 percent of amounts 
     appropriated or otherwise made available for the pilot 
     program may be used to administer the pilot program.
       (s) Definitions.--In this section:
       (1) Active duty, active military, naval, or air service, 
     reserve component, and veteran.--The terms ``active duty'', 
     ``active military, naval, or air service'', ``reserve 
     component'', and ``veteran'' have the meanings given such 
     terms in section 101 of title 38, United States Code.
       (2) Full-time basis.--The term ``full-time basis'', with 
     respect to an internship, means participation in the 
     internship of not fewer than 30 hours per week and not more 
     than 40 hours per week.
       (3) Small business concern.--The term ``small business 
     concern'' has the meaning given that term under section 3(a) 
     of the Small Business Act (15 U.S.C. 632(a)).
       (4) Unemployment compensation.--The term ``unemployment 
     compensation'' means regular compensation (as defined in 
     section 205 of the Federal-State Extended Unemployment 
     Compensation Act of 1970), compensation under the Federal-
     State Extended Compensation Act of 1970, and compensation 
     under the emergency unemployment compensation program under 
     title IV of the Supplemental Appropriations Act, 2008.
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