[Congressional Record (Bound Edition), Volume 157 (2011), Part 12]
[Senate]
[Pages 17029-17040]
[From the U.S. Government Publishing Office, www.gpo.gov]




               3% WITHHOLDING REPEAL AND JOB CREATION ACT

  The PRESIDING OFFICER. Under the previous order, the Senate will 
resume consideration of H.R. 674, which the clerk will report.
  The bill clerk read as follows:

       A bill (H.R. 674) to amend the Internal Revenue Code of 
     1986 to repeal the imposition of 3 percent withholding on 
     certain payments made to vendors by government entities, to 
     modify the calculation of modified adjusted gross income for 
     purposes of determining eligibility for certain healthcare-
     related programs, and for other purposes.

  Pending:

       Reid (for Tester) amendment No. 927, as modified, to amend 
     the Internal Revenue Code of 1986 to permit a 100-percent 
     levy for payments to Federal vendors relating to property, to 
     require a study on how to reduce the amount of Federal taxes 
     owed but not paid by Federal contractors, and to make certain 
     improvements in the laws relating to the employment and 
     training of veterans.
       McCain amendment No. 928 (to amendment No. 927), to provide 
     American jobs through economic growth.

  The PRESIDING OFFICER. There will be 15 minutes of debate equally 
divided.
  The Senator from Montana.


                           Amendment No. 927

  Mr. TESTER. Mr. President, the economy has hit us all hard. Montanans 
who have done everything right are losing their jobs, and some are even 
losing their homes. To get the economy back on track we need to employ 
some common sense. We need to put politics aside, and we need to work 
together on behalf of the struggling families across this country.
  In particular, we need to do the right thing on behalf of our men and 
women who have served our Nation in uniform. The unemployment rate for 
younger veterans who have served since September 11, 2001, continues to 
remain well above average. It is unacceptably high and is getting 
worse. It is a national disgrace. Our service men and women deserve 
better.
  These men and women left the comforts of home and put their lives on 
hold to fight for us in some of the harshest conditions imaginable. Far 
too many have paid the ultimate sacrifice, while thousands continue to 
struggle with the wounds of war--those seen and those unseen. They face 
daily challenges many of us can never fully comprehend, and they have 
endured sacrifices we can never fully repay. Many of them served 
multiple tours. Even the Montana National Guard's largest unit was sent 
to Iraq twice in the last 8 years. That is a long time--especially for 
a Reserve component--to be away from home. But they carried out their 
assignments as the best-trained, most professional military in the 
world. And for that we are proud and we are grateful.
  When I visited Iraq and Afghanistan earlier this year, I was 
protected by some of the most well-trained, professional, and downright 
inspirational men and women our country has ever produced. I recall in 
one instance standing at a command operating base looking out over a 
valley in Afghanistan where, months earlier, the Taliban had run 
roughshod. I thought about how difficult the conditions were for the 
young men and women who were there wearing the uniform of our country, 
standing shoulder to shoulder with members of the Afghan Army.
  In the hours we were there, I did not hear one complaint, only 
commitment and pride in their work from our troops. I will never forget 
that. If we fail to do right by them, what does that say about us?
  Simply put, we have a responsibility to provide for all veterans and 
their families. It is something I have never taken lightly, and it is 
something that continues to motivate me every single day. It means 
providing them with the best services and care, and it means giving 
them every opportunity to succeed and empowering them with the tools 
they need to find good-paying jobs.
  The legislation before us today does exactly that. It would provide 
important tax credits to encourage more employers to hire veterans who 
are out of work. It would provide additional education and job training 
for veterans to

[[Page 17030]]

gain additional skills to be more successful in an increasingly 
competitive job market. It would take important steps to help ease the 
transition between military service and the civilian workforce.
  Let me give an example of how this bill would directly affect one of 
my constituents. A chap by the name of Nathan Wiens grew up in Glasgow, 
MT, a small town in the northeastern corner of the State. He attended 
Montana State University on an ROTC scholarship, earned a degree in 
civil engineering, and was deployed to Iraq as a captain in the Army. 
During his years in the Army, Nathan used his engineering degree. But 
when he came home, his military experience did not count toward his 
professional engineering certification. Now Nathan has to spend a 
couple of years building up the civilian equivalent of the military 
experience he already has just to be able to qualify to become a 
certified professional engineer. This bill will help fix it so that 
military experience counts.
  This bill says if someone spends 6 years in the Army driving a truck, 
they ought to be able to get their commercial driver's license a whole 
lot faster than someone who does not have that experience.
  It would require the Department of Labor, in conjunction with the VA 
and the Department of Defense, to take a hard look at what military 
skills and training should be translatable to the civilian sector. It 
would make it easier to get these licenses and certifications that our 
veterans need.
  This bill will give employers valuable information about the skill 
sets our veterans have gained while they have served in the military. 
These are the kinds of commonsense ideas we should be taking a look at. 
It is the responsible thing to do for America's veterans.
  It would not surprise anyone this proposal has ideas from both 
Democrats and Republicans because this is an issue that shouldn't be 
partisan. Every Member of the Senate should be committed to helping 
veterans find jobs.
  Montana has more veterans per capita than any other State in the 
Union, except Alaska. We have 103,000 veterans in Montana. As I travel 
across the State and visit with them and their families, the topic of 
veterans employment remains at the forefront of their minds. It is 
important to them. It is important to their friends and loved ones. It 
is important to our communities. It should be important to each and 
every one of us.
  We deal with a lot of contentious issues here, but this should not be 
one of them. Let's work together to do the right thing and get this 
bill passed because it is the least we can do for those to whom we owe 
so much.
  With that, Mr. President, I ask for the yeas and nays on the bill.
  The PRESIDING OFFICER. Without objection, the Senator may ask for the 
yeas and nays on his amendment.
  Mr. TESTER. I ask for the yeas and nays on the amendment.
  The PRESIDING OFFICER. Is there a sufficient second?
  There is a sufficient second.
  The yeas and nays were ordered.
  The PRESIDING OFFICER. The Senator from Massachusetts.
  Mr. BROWN of Massachusetts. Mr. President, I first want to thank 
Senator Tester for his comments.
  Mr. President, if we pass these two measures today, if we repeal the 
3-percent withholding and take steps to help our veterans find work, 
the American people will win, and for 1 day at least partisanship will 
lose.
  Veterans Day is tomorrow. So let's renew our commitment to the men 
and women who have answered the call of duty and who have fought for us 
and for our freedom and continue to do so.
  Our returning heroes face a jobs crisis. We all know it. We hear 
about it. It is as relevant in Massachusetts as it is in Montana and 
every other State in this great country. We are here to make a 
difference today, and that is what this bill will do. This bill will 
give a much needed boost to the employment of veterans.
  I earlier filed a hire a hero act, and I am glad it has been 
incorporated with the President's proposals and is moving forward 
today. The 3-percent withholding provision is also something I have 
been working on for many months as well. So I am glad these two bills 
are coming to fruition. It will give, as I said, a much needed boost to 
our unemployed heroes, and it will improve our veterans transitioning 
from military to civilian life.
  I hope Congress will seize on this momentum and work in a bipartisan 
manner to pass more jobs legislation. Contrary to what we read and hear 
from the media, there are things we can all agree on, and these are two 
good examples.
  So I say again, if we can do these two things--repeal the 3-percent 
withholding and help our veterans--maybe it will usher in an era of 
good will, with one good deed leading to another good deed, and so on, 
and so on. So let's end this stealth tax and do something meaningful 
for our veterans. Let's start working together. Above all, let's put 
Americans first because we are all Americans first.
  I thank the Chair, and I yield the floor.
  The PRESIDING OFFICER. The Senator from Montana.
  Mr. TESTER. Mr. President, I ask unanimous consent that there be 2 
minutes of debate equally divided between the votes.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  Mr. TESTER. Mr. President, I suggest the absence of a quorum.
  The PRESIDING OFFICER. The clerk will call the roll.
  The assistant editor of the Daily Digest proceeded to call the roll.
  Mr. PAUL. I ask unanimous consent that the order for the quorum call 
be rescinded.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  Mr. PAUL. Mr. President, I rise in support of the Republican jobs 
plan. I think it is very important that the American people know there 
are different visions about how we would create jobs in this country, 
whether the jobs should be created by the private sector or the jobs 
should be created by borrowing money from China, taxing us more, and 
then redistributing that money into government-created jobs.
  There are different visions in this country about how we create jobs. 
The one thing we know is, we need millions of jobs--not tens of 
thousands of jobs but millions of jobs.
  What I ask the President to do is to come in from the campaign trail 
and talk to us. I think he needs to be here, not raising money, not out 
fundraising for his campaign, not bashing Republicans on the campaign 
trail. He needs to be in Washington. He needs to be engaged with the 
committee, the supercommittee. He needs to be engaged with Republican 
counterparts.
  I have told the President, personally, I will work with him. I will 
come from the Republican side of the aisle, and we can figure out areas 
in which we agree. There are many aspects of the Republican jobs plan 
that some Democrats have said they might support: Reducing the 
corporate income tax, lowering the rates, and eliminating loopholes.
  The thing is, on the campaign trail, we are told Republicans are 
unwilling to eliminate loopholes for millionaires who don't pay taxes. 
The truth is, we are very willing. This has been offered in the 
supercommittee. It has been offered by our side. It is offered in the 
Republican jobs plan. We are willing to eliminate loopholes that make 
the Tax Code unfair, that allow either millionaires or corporations to 
pay no taxes. But we want to do it in the context of tax reform.
  There are a couple things historically that government has done that 
has created jobs. In the 1960s, President Kennedy reduced the top rate 
from 90 to 70. Unemployment was cut in half. In the 1980s, Reagan 
lowered the top rate from 70 to 50. Unemployment was cut in half. 
Reagan again lowered the top rate from 50 to 28, and unemployment was 
cut in half.
  Interestingly, through all these rate cuts of the top taxpayers, as 
we cut the rates, tax revenue didn't go down. Tax revenue has stayed 
about 18 percent of GDP no matter what the rates are. But what lowering 
the top rates does is it spawns economic activity.
  So I ask the President to come in from the campaign trail, to come in

[[Page 17031]]

from his Canadian bus tour, and talk to us on the Hill--talk to us 
about ways we could create jobs again. We need millions of jobs. 
Fourteen million Americans are out of work. Two million Americans have 
lost their jobs since this President came into the White House.
  They say the definition of ``insanity'' is doing the same thing over 
and over and expecting a different result. We need conversation on 
Capitol Hill between Republicans and Democrats, but we also need 
leadership from the White House. Continuing to bash us on the campaign 
trail is getting us nowhere as a country.
  A couple things I have heard from the President as he has campaigned 
around the country: One, he said Republicans are too stupid to 
understand his plan, so he is going to break up his jobs plan and give 
it to us in pieces because we can't understand the whole thing.
  In diplomacy, they sometimes talk about the stick and the carrot. I 
am sure feeling the stick from the President, but I am not seeing a 
carrot. What we need to have is conversation where we can bridge these 
differences and find some common ground.
  We have a corporate income tax higher than anybody in the world. We 
keep heaping new regulations onto our businesses. We need to lower our 
corporate income tax. How can they compete? We worry about jobs going 
overseas?
  The PRESIDING OFFICER. The Senator's time has expired.
  Mr. PAUL. I urge support of the Republican jobs plan.
  Mr. LEVIN. Mr. President, the legislation before the Senate is the 
latest effort by Senate Democrats to pass portions of the President's 
American Jobs Act that will boost the economy and put Americans back to 
work. The underlying legislation will repeal a 3 percent withholding on 
contractors that was designed to encourage contractors to pay their 
taxes; and the amendment offered by my colleague from Montana, Senator 
Tester, will help veterans by providing hiring incentives to employers 
who hire our heroes and expanding education and training opportunities 
for older veterans.
  The 3 percent withholding on contractors was enacted in 2005 and, 
because of implementation problems, has never been put into effect. I 
have heard from businesses in Michigan, universities in Michigan, 
mayors and countless others that this withholding provision is 
unworkable. Because Congress and the President recognize this problem, 
Congress has continued to delay its effective date.
  The repeal of the 3 percent withholding requirement should be paid 
for by finding other ways to promote tax fairness and improving tax 
compliance. I have offered several of these proposals before. 
Unfortunately, rather than paying for this bill with measures to 
promote tax compliance and fairness, it is paid for by revising the way 
the modified adjusted gross income is calculated in determining 
eligibility for health care programs. According to the Joint Tax 
Committee and the Congressional Budget Office, this means that 
somewhere between 500,000 and a million people receiving early retiree, 
disability, and other social security benefits will no longer be 
eligible for Medicaid. If changes in income eligibility for Medicaid 
need to be considered, then any savings from those changes should be 
reinvested back into Medicaid to strengthen our health care system. I 
believe it is unwise to take savings from health care programs to pay 
for the repeal of the 3 percent withholding requirement. This 
legislation does do some important things to help America's veterans 
who continue to face big challenges even after leaving the battlefield. 
Veterans comprise almost 10 percent of the U.S. population. While 
overall employment of veterans has been at or below the national 
average, those veterans who have served in the past decade have seen 
their unemployment rate rise to above the national average. Male 
veterans aged 18-24 had an unemployment rate of almost 22 percent in 
2010. Almost 12 percent of all homeless adults are veterans. It is a 
national embarrassment that we are failing to serve those who have 
served us.
  This bill will provide business tax credits for the hiring of 
veterans, including those with disabilities. The tax credit is scaled 
to increase depending on how long that veteran has been unemployed. The 
bill also helps unemployed veterans pay for school and provides 
Vocational Rehabilitation and Employment Benefits for disabled 
veterans. And finally, the bill allows active servicemembers to begin 
pursuing federal employment opportunities prior to separation from the 
military, easing their transition from the military to jobs at the VA, 
Homeland Security or other federal agencies that would benefit from the 
experience a veteran offers.
  Because it will help to hire veterans, who have sacrificed so much to 
help our country, and repeals the 3 percent withholding requirement, I 
will vote for the bill although the health care eligibility changes are 
the wrong way to pay for.


                           Amendment No. 928

  Mr. GRASSLEY. Mr. President, I ask for the yeas and nays.
  The PRESIDING OFFICER. Is there a sufficient second?
  There is a sufficient second.
  The clerk will call the roll.
  The assistant editor of the Daily Digest called the roll.
  Mr. LEE (when his name was called). ``Present.''
  Mr. DURBIN. I announce that the Senator from Hawaii (Mr. Inouye) is 
necessarily absent.
  Mr. KYL. The following Senators are necessarily absent: the Senator 
from Arizona (Mr. McCain) and the Senator from Alabama (Mr. Sessions).
  The PRESIDING OFFICER (Mr. Sanders). Are there any other Senators in 
the Chamber desiring to vote?
  The result was announced--yeas 40, nays 56, as follows:

                      [Rollcall Vote No. 202 Leg.]

                                YEAS--40

     Alexander
     Ayotte
     Barrasso
     Blunt
     Boozman
     Burr
     Chambliss
     Coats
     Coburn
     Cochran
     Corker
     Cornyn
     Crapo
     DeMint
     Enzi
     Graham
     Grassley
     Hatch
     Heller
     Hoeven
     Hutchison
     Inhofe
     Isakson
     Johanns
     Johnson (WI)
     Kirk
     Kyl
     Lugar
     McConnell
     Moran
     Paul
     Portman
     Risch
     Roberts
     Rubio
     Shelby
     Thune
     Toomey
     Vitter
     Wicker

                                NAYS--56

     Akaka
     Baucus
     Begich
     Bennet
     Bingaman
     Blumenthal
     Boxer
     Brown (MA)
     Brown (OH)
     Cantwell
     Cardin
     Carper
     Casey
     Collins
     Conrad
     Coons
     Durbin
     Feinstein
     Franken
     Gillibrand
     Hagan
     Harkin
     Johnson (SD)
     Kerry
     Klobuchar
     Kohl
     Landrieu
     Lautenberg
     Leahy
     Levin
     Lieberman
     Manchin
     McCaskill
     Menendez
     Merkley
     Mikulski
     Murkowski
     Murray
     Nelson (NE)
     Nelson (FL)
     Pryor
     Reed
     Reid
     Rockefeller
     Sanders
     Schumer
     Shaheen
     Snowe
     Stabenow
     Tester
     Udall (CO)
     Udall (NM)
     Warner
     Webb
     Whitehouse
     Wyden

                        ANSWERED ``PRESENT''--1

       
     Lee
       

                             NOT VOTING--3

     Inouye
     McCain
     Sessions
  The PRESIDING OFFICER. On this vote, the yeas are 40, the nays are 
56. One Senator responded ``present.''
  Under the previous order requiring 60 votes for the adoption of this 
amendment, the amendment is rejected.


                     Amendment No. 927, As Modified

  The PRESIDING OFFICER. There will now be 2 minutes of debate equally 
divided. The Senator from Montana.
  Mr. TESTER. Mr. President, we are now going to take up amendment No. 
927, which is the VOW To Hire Heroes Act. This is a veterans employment 
act, broad based, bipartisan. It has Republican ideas and it has 
Democratic ideas in it. It is paid for. It is the right thing to do 
because we all know that veterans right now returning from Iraq and 
Afghanistan have a much higher unemployment rate than the rest of our 
population. Because of that high unemployment rate it is necessary we 
get this amendment agreed to and attached to this bill.
  I ask concurrence with amendment No. 927.
  The PRESIDING OFFICER. The Senator from Virginia.

[[Page 17032]]


  Mr. WARNER. Mr. President, I rise in support of my friend, the 
Senator from Montana, and commend him for his leadership on this issue. 
I look forward to supporting him in his efforts to support our 
veterans.
  The PRESIDING OFFICER. Is there further debate?
  If not, the question is on agreeing to the amendment.
  The yeas and nays have been ordered.
  The clerk will call the roll.
  The bill clerk called the roll.
  Ms. SNOWE (when her name was called). ``Present.''
  Mr. DURBIN. I announce that the Senator from Hawaii (Mr. Inouye) is 
necessarily absent.
  Mr. KYL. The following Senators are necessarily absent: the Senator 
from Arizona (Mr. McCain), the Senator from Kentucky (Mr. Paul), and 
the Senator from Alabama (Mr. Sessions).
  The PRESIDING OFFICER. Are there any other Senators in the Chamber 
desiring to vote?
  The result was announced--yeas 94, nays 1, as follows:

                      [Rollcall Vote No. 203 Leg.]

                                YEAS--94

     Akaka
     Alexander
     Ayotte
     Barrasso
     Baucus
     Begich
     Bennet
     Bingaman
     Blumenthal
     Blunt
     Boozman
     Boxer
     Brown (MA)
     Brown (OH)
     Burr
     Cantwell
     Cardin
     Carper
     Casey
     Chambliss
     Coats
     Coburn
     Cochran
     Collins
     Conrad
     Coons
     Corker
     Cornyn
     Crapo
     Durbin
     Enzi
     Feinstein
     Franken
     Gillibrand
     Graham
     Grassley
     Hagan
     Harkin
     Hatch
     Heller
     Hoeven
     Hutchison
     Inhofe
     Isakson
     Johanns
     Johnson (SD)
     Johnson (WI)
     Kerry
     Kirk
     Klobuchar
     Kohl
     Kyl
     Landrieu
     Lautenberg
     Leahy
     Lee
     Levin
     Lieberman
     Lugar
     Manchin
     McCaskill
     McConnell
     Menendez
     Merkley
     Mikulski
     Moran
     Murkowski
     Murray
     Nelson (NE)
     Nelson (FL)
     Portman
     Pryor
     Reed
     Reid
     Risch
     Roberts
     Rockefeller
     Rubio
     Sanders
     Schumer
     Shaheen
     Shelby
     Stabenow
     Tester
     Thune
     Toomey
     Udall (CO)
     Udall (NM)
     Vitter
     Warner
     Webb
     Whitehouse
     Wicker
     Wyden

                                NAYS--1

       
     DeMint
       

                        ANSWERED ``PRESENT''--1

       
     Snowe
       

                             NOT VOTING--4

     Inouye
     McCain
     Paul
     Sessions
  The amendment (No. 927), as modified, was agreed to.
  The PRESIDING OFFICER. Under the previous order requiring 60 votes 
for the adoption of this amendment, the amendment, as modified, is 
agreed to.
  The amendment was ordered to be engrossed and the bill to be read a 
third time.
  The bill was read the third time.
  The PRESIDING OFFICER. The Senator from Massachusetts.
  Mr. BROWN of Massachusetts. Mr. President, I just want to remind 
everyone this is on the 3-percent withholding. I know I have been 
working on this and others have been working on this for some time. 
This is part of the President's jobs bill. Who said we can't get 
together and do something? By working together, we are going to do 
something the American people want: get rid of the stealth tax that is 
basically hurting job creation in my State and in other States 
throughout the country.
  I wish to thank the leadership on both sides for working through 
this. I encourage everyone to vote for it. I hope we can have a nice 
signing ceremony when it is done to show there is truly bipartisan work 
because one good deed equals another good deed and so on and so forth.
  Remember, we are Americans first. We need to start doing the things 
the American people want us to do.
  I thank the Chair.
  The PRESIDING OFFICER. The bill having been read the third time, the 
question is, Shall the bill, as amended, pass?
  The yeas and nays are ordered.
  The clerk will call the roll.
  The legislative clerk called the roll.
  Ms. SNOWE (when her name was called). ``Present.''
  Mr. DURBIN. I announce that the Senator from North Carolina (Mrs. 
Hagan) and the Senator from Hawaii (Mr. Inouye) are necessarily absent.
  Mr. KYL. The following Senators are necessarily absent: the Senator 
from Arizona (Mr. McCain) and the Senator from Alabama (Mr. Sessions).
  The PRESIDING OFFICER. Are there any other Senators in the Chamber 
desiring to vote?
  The result was announced--yeas 95, nays 0, as follows:

                      [Rollcall Vote No. 204 Leg.]

                                YEAS--95

     Akaka
     Alexander
     Ayotte
     Barrasso
     Baucus
     Begich
     Bennet
     Bingaman
     Blumenthal
     Blunt
     Boozman
     Boxer
     Brown (MA)
     Brown (OH)
     Burr
     Cantwell
     Cardin
     Carper
     Casey
     Chambliss
     Coats
     Coburn
     Cochran
     Collins
     Conrad
     Coons
     Corker
     Cornyn
     Crapo
     DeMint
     Durbin
     Enzi
     Feinstein
     Franken
     Gillibrand
     Graham
     Grassley
     Harkin
     Hatch
     Heller
     Hoeven
     Hutchison
     Inhofe
     Isakson
     Johanns
     Johnson (WI)
     Johnson (SD)
     Kerry
     Kirk
     Klobuchar
     Kohl
     Kyl
     Landrieu
     Lautenberg
     Leahy
     Lee
     Levin
     Lieberman
     Lugar
     Manchin
     McCaskill
     McConnell
     Menendez
     Merkley
     Mikulski
     Moran
     Murkowski
     Murray
     Nelson (NE)
     Nelson (FL)
     Paul
     Portman
     Pryor
     Reed
     Reid
     Risch
     Roberts
     Rockefeller
     Rubio
     Sanders
     Schumer
     Shaheen
     Shelby
     Stabenow
     Tester
     Thune
     Toomey
     Udall (CO)
     Udall (NM)
     Vitter
     Warner
     Webb
     Whitehouse
     Wicker
     Wyden

                        ANSWERED ``PRESENT''--1

       
     Snowe
       

                             NOT VOTING--4

     Hagan
     Inouye
     McCain
     Sessions
  The bill (H.R. 674), as amended, was passed, as follows:

                                H.R. 674

       Resolved, That the bill from the House of Representatives 
     (H.R. 674) entitled ``An Act to amend the Internal Revenue 
     Code of 1986 to repeal the imposition of 3 percent 
     withholding on certain payments made to vendors by government 
     entities, to modify the calculation of modified adjusted 
     gross income for purposes of determining eligibility for 
     certain healthcare-related programs, and for other 
     purposes.'', do pass with the following amendment:
       Strike title II and insert the following:

                      TITLE II--VOW TO HIRE HEROES

Sec. 201. Short title.

                    Subtitle A--Retraining Veterans

Sec. 211. Veterans retraining assistance program.

        Subtitle B--Improving the Transition Assistance Program

Sec. 221. Mandatory participation of members of the Armed Forces in the 
              Transition Assistance Program of Department of Defense.
Sec. 222. Individualized assessment for members of the Armed Forces 
              under transition assistance on equivalence between skills 
              developed in military occupational specialties and 
              qualifications required for civilian employment with the 
              private sector.
Sec. 223. Transition Assistance Program contracting.
Sec. 224. Contracts with private entities to assist in carrying out 
              Transition Assistance Program of Department of Defense.
Sec. 225. Improved access to apprenticeship programs for members of the 
              Armed Forces who are being separated from active duty or 
              retired.
Sec. 226. Comptroller General review.

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

Sec. 231. Two-year extension of authority of Secretary of Veterans 
              Affairs to provide rehabilitation and vocational benefits 
              to members of the Armed Forces with severe injuries or 
              illnesses.
Sec. 232. Expansion of authority of Secretary of Veterans Affairs to 
              pay employers for providing on-job training to veterans 
              who have not been rehabilitated to point of 
              employability.
Sec. 233. Training and rehabilitation for veterans with service-
              connected disabilities who have exhausted rights to 
              unemployment benefits under State law.
Sec. 234. Collaborative veterans' training, mentoring, and placement 
              program.
Sec. 235. Appointment of honorably discharged members and other 
              employment assistance.
Sec. 236. Department of Defense pilot program on work experience for 
              members of the Armed Forces on terminal leave.

[[Page 17033]]

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

[[Page 17034]]

     participation requirement of paragraph (1) with respect to--
       ``(A) such groups or classifications of members as the 
     Secretaries determine, after consultation with the Secretary 
     of Labor and the Secretary of Veterans Affairs, for whom 
     participation is not and would not be of assistance to such 
     members based on the Secretaries' articulable justification 
     that there is extraordinarily high reason to believe the 
     exempted members are unlikely to face major readjustment, 
     health care, employment, or other challenges associated with 
     transition to civilian life; and
       ``(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''.

[[Page 17035]]



     SEC. 232. EXPANSION OF AUTHORITY OF SECRETARY OF VETERANS 
                   AFFAIRS TO PAY EMPLOYERS FOR PROVIDING ON-JOB 
                   TRAINING TO VETERANS WHO HAVE NOT BEEN 
                   REHABILITATED TO POINT OF EMPLOYABILITY.

       Section 3116(b)(1) of title 38, United States Code, is 
     amended by striking ``who have been rehabilitated to the 
     point of employability''.

     SEC. 233. TRAINING AND REHABILITATION FOR VETERANS WITH 
                   SERVICE-CONNECTED DISABILITIES WHO HAVE 
                   EXHAUSTED RIGHTS TO UNEMPLOYMENT BENEFITS UNDER 
                   STATE LAW.

       (a) Entitlement to Additional Rehabilitation Programs.--
       (1) In general.--Section 3102 of title 38, United States 
     Code, is amended--
       (A) in the matter before paragraph (1), by striking ``A 
     person'' and inserting the following:
       ``(a) In General.--A person''; and
       (B) by adding at the end the following new paragraph:
       ``(b) Additional Rehabilitation Programs for Persons Who 
     Have Exhausted Rights to Unemployment Benefits Under State 
     Law.--(1) Except as provided in paragraph (4), a person who 
     has completed a rehabilitation program 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:

[[Page 17036]]



     ``Sec. 2108a. Treatment of certain individuals as veterans, 
       disabled veterans, and preference eligibles

       ``(a) Veteran.--
       ``(1) In general.--Except as provided under paragraph (3), 
     an individual shall be treated as a veteran defined under 
     section 2108(1) for purposes of making an appointment in the 
     competitive service, if the individual--
       ``(A) meets the definition of a veteran under section 
     2108(1), except for the requirement that the individual has 
     been discharged or released from active duty in the armed 
     forces under honorable conditions; and
       ``(B) submits a certification described under paragraph (2) 
     to the Federal officer making the appointment.
       ``(2) Certification.--A certification referred to under 
     paragraph (1) is a certification that the individual is 
     expected to be discharged or released from active duty in the 
     armed forces under honorable conditions not later than 120 
     days after the date of the submission of the certification.
       ``(b) Disabled Veteran.--
       ``(1) In general.--Except as provided under paragraph (3), 
     an individual shall be treated as a disabled veteran defined 
     under section 2108(2) for purposes of making an appointment 
     in the competitive service, if the individual--
       ``(A) meets the definition of a disabled veteran under 
     section 2108(2), except for the requirement that the 
     individual has been separated from active duty in the armed 
     forces under honorable conditions; and
       ``(B) submits a certification described under paragraph (2) 
     to the Federal officer making the appointment.
       ``(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--

[[Page 17037]]

       ``(A) the percentage of participants in programs under this 
     chapter who find employment before the end of the first 90-
     day period following their completion of the program;
       ``(B) the percentage of participants described in 
     subparagraph (A) who are employed during the first 180-day 
     period following the period described in such subparagraph;
       ``(C) the median earnings of participants described in 
     subparagraph (A) during the period described in such 
     subparagraph;
       ``(D) the median earnings of participants described in 
     subparagraph (B) during the period described in such 
     subparagraph; and
       ``(E) the percentage of participants in programs under this 
     chapter who obtain a certificate, degree, diploma, licensure, 
     or industry-recognized credential relating to the program in 
     which they participated under this chapter during the third 
     90-day period following their completion of the program.''.

     SEC. 239. CLARIFICATION OF PRIORITY OF SERVICE FOR VETERANS 
                   IN DEPARTMENT OF LABOR JOB TRAINING PROGRAMS.

       Section 4215 of title 38, United States Code, is amended--
       (1) in subsection (a)(3), by adding at the end the 
     following: ``Such priority includes giving access to such 
     services to a covered person before a non-covered person or, 
     if resources are limited, giving access to such services to a 
     covered person instead of a non-covered person.''; and
       (2) by amending subsection (d) to read as follows:
       ``(d) Addition to Annual Report.--(1) In the annual report 
     required under section 4107(c) of this title for the program 
     year beginning in 2003 and each subsequent program year, the 
     Secretary of Labor shall evaluate whether covered persons are 
     receiving priority of service and are being fully served by 
     qualified job training programs. Such evaluation shall 
     include--
       ``(A) an analysis of the implementation of providing such 
     priority at the local level;
       ``(B) whether the representation of veterans in such 
     programs is in proportion to the incidence 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).''.

[[Page 17038]]

       (2) Credit allowable.--Section 3111 of such Code is amended 
     by adding at the end the following new subsection:
       ``(e) Credit for Employment of Qualified Veterans.--
       ``(1) In general.--If a qualified tax-exempt organization 
     hires a qualified veteran with respect to whom a credit would 
     be allowable under section 38 by reason of section 51 if the 
     organization were not a qualified tax-exempt organization, 
     then there shall be allowed as a credit against the tax 
     imposed by subsection (a) on wages paid with respect to 
     employment of all employees of the organization during the 
     applicable period an amount equal to the credit determined 
     under section 51 (after application of the modifications 
     under paragraph (3)) with respect to wages paid to such 
     qualified veteran during such period.
       ``(2) Overall limitation.--The aggregate amount allowed as 
     a credit under this subsection for all qualified veterans for 
     any period with respect to which tax is imposed under 
     subsection (a) shall not exceed the amount of the tax imposed 
     by subsection (a) on wages paid with respect to employment of 
     all employees of the organization during such period.
       ``(3) Modifications.--For purposes of paragraph (1), 
     section 51 shall be applied--
       ``(A) by substituting `26 percent' for `40 percent' in 
     subsection (a) thereof,
       ``(B) by substituting `16.25 percent' for `25 percent' in 
     subsection (i)(3)(A) thereof, and
       ``(C) by only taking into account wages paid to a qualified 
     veteran for services in furtherance of the activities related 
     to the purpose or function constituting the basis of the 
     organization's exemption under section 501.
       ``(4) Applicable period.--The term `applicable period' 
     means, with respect to any qualified veteran, the 1-year 
     period beginning with the day such qualified veteran begins 
     work for the organization.
       ``(5) Definitions.--For purposes of this subsection--
       ``(A) the term `qualified tax-exempt organization' means an 
     employer that is an organization described in section 501(c) 
     and exempt from taxation under section 501(a), and
       ``(B) the term `qualified veteran' has meaning given such 
     term by section 51(d)(3).''.
       (3) Transfers to federal old-age and survivors insurance 
     trust fund.--There are hereby appropriated to the Federal 
     Old-Age and Survivors Trust Fund and the Federal Disability 
     Insurance Trust Fund established under section 201 of the 
     Social Security Act (42 U.S.C. 401) 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.

[[Page 17039]]

       (H) Recommendations on ways to better identify Federal 
     contractors with delinquent tax debts.
       (b) Report.--Not later than 12 months after the date of the 
     enactment of this Act, the Secretary of the Treasury shall 
     submit to the Committee on Ways and Means of the House of 
     Representatives, the Committee on Finance of the Senate, the 
     Committee on Oversight and Government Reform of the House of 
     Representatives, and the Committee on Homeland Security and 
     Government Affairs of the Senate, a report on the study 
     conducted under subsection (a), together with any legislative 
     recommendations.

TITLE IV--MODIFICATION OF CALCULATION OF MODIFIED ADJUSTED GROSS INCOME 
         FOR DETERMINING CERTAIN HEALTHCARE PROGRAM ELIGIBILITY

     SEC. 401. MODIFICATION OF CALCULATION OF MODIFIED ADJUSTED 
                   GROSS INCOME FOR DETERMINING CERTAIN HEALTHCARE 
                   PROGRAM ELIGIBILITY.

       (a) In General.--Subparagraph (B) of section 36B(d)(2) of 
     the Internal Revenue Code of 1986 is amended by striking 
     ``and'' at the end of clause (i), by striking the period at 
     the end of clause (ii) and inserting ``, and'', and by adding 
     at the end the following new clause:
       ``(iii) an amount equal to the portion of the taxpayer's 
     social security benefits (as defined in section 86(d)) which 
     is not included in gross income under section 86 for the 
     taxable year.''.
       (b) Effective Date.--The amendments made by this section 
     shall take effect on the date of the enactment of this Act.
       (c) No Impact on Social Security Trust Funds.--
       (1) Estimate of secretary.--The Secretary of the Treasury, 
     or the Secretary's delegate, shall annually estimate the 
     impact that the amendments made by subsection (a) have on the 
     income and balances of the trust funds established under 
     section 201 of the Social Security Act (42 U.S.C. 401).
       (2) Transfer of funds.--If, under paragraph (1), the 
     Secretary of the Treasury or the Secretary's delegate 
     estimates that such amendments have a negative impact on the 
     income and balances of such trust funds, the Secretary shall 
     transfer, not less frequently than quarterly, from the 
     general fund an amount sufficient so as to ensure that the 
     income and balances of such trust funds are not reduced as a 
     result of such amendments.

                       TITLE V--BUDGETARY EFFECTS

     SEC. 501. STATUTORY PAY-AS-YOU-GO ACT OF 2010.

       The budgetary effects of this Act, for the purpose of 
     complying with the Statutory Pay-As-You-Go Act of 2010, shall 
     be determined by reference to the latest statement titled 
     ``Budgetary Effects of PAYGO Legislation'' for this Act, 
     submitted for printing in the Congressional Record by the 
     Chairman of the House Budget Committee, provided that such 
     statement has been submitted prior to the vote on passage.

  Ms. SNOWE. Mr. President, I would like to express my support for 
provisions contained within the amendment offered by Senator Tester, as 
they will make critical strides in addressing the reality that far too 
many of our Nation's veterans are finding it difficult--if not 
impossible--to find work in the civilian job market after they leave 
military service. Senator Tester's amendment is illustrative of how our 
Nation's government should work, as it contains ideas from both bodies 
of Congress, both Republicans and Democrats, and the executive branch.
  Over the past year, I have been particularly pleased to support many 
of the concepts contained within this amendment in other forms. I 
joined Senator Patty Murray, chair of the Veterans' Affairs Committee, 
in June by cosponsoring the Hiring Heroes Act, which is the source of a 
great number of the sections of this amendment. I am also gratified to 
see that this amendment contains the President's September proposal to 
offer tax credits to businesses that hire unemployed and disabled 
veterans. As I said then, providing tax incentives for these hires is 
an excellent means of fostering job creation--in this case, it has the 
added benefit of helping to address veteran unemployment rates.
  Earlier this week, Secretary of Defense Leon Panetta held a 
roundtable on veteran unemployment in which he noted that today's 
newest veterans--the men and women who have risked their health and 
their very lives by serving in places like Iraq, Afghanistan, and other 
parts of the world--are ``the next greatest generation''' which have 
``dedicated themselves to serving this country.''
  On this point, Secretary Panetta could not be more correct. As a 
senior member of the Senate Select Committee on Intelligence, I have 
had no higher privilege than witnessing firsthand our exceptional 
servicemen and women on the frontlines in Afghanistan and Iraq. Their 
steadfast courage, leadership, and dedication ensures that our armed 
forces are second to none and the finest on the planet.
  Yet despite their extraordinary commitment to this Nation, 
unparalleled technical and practical skills, and remarkable 
capabilities demonstrated under the most difficult conditions possible, 
too many of our Nation's veterans remain unemployed today.
  Indeed, according to the Bureau of Labor Statistics' October 2011 
report, post-9/11 veterans have had a particularly challenging time 
finding employment, with more than 12 percent of them currently 
unemployed. Not only is this number far too high, but it greatly 
exceeds the nation's unemployment level for nonveterans. Our youngest 
veterans--those between ages 18 and 24--are experiencing even greater 
difficulty finding jobs, with unemployment rates exceeding 20 percent.
  For our veterans--and our Nation--such statistics are nothing less 
than a travesty. And that is why I so strongly support the efforts of 
this Chamber to lend a well-deserved helping hand to our veterans in 
their efforts to find employment. Indeed, when it comes to securing a 
job, is there any question that we all should be fighting for those who 
have so nobly fought for America?
  The amendment before the Senate today is a crucial effort to do so. 
Some of its provisions will ensure that our servicemembers receive 
assistance in preparing for their transition to life as a civilian, 
looking for a job, and identifying good career options. Other 
provisions will establish a pioneering effort to identify equivalencies 
between the skills our servicemen and women develop in the military and 
the qualifications required for civilian employment. Still other 
sections will extend the opportunity for servicemembers and veterans to 
receive supplemental rehabilitation and vocational benefits, providing 
them additional time to prepare for the job market.
  Efforts such as these are imperative in order to allow our veterans 
to prepare to be competitive in today's job market. Other items in this 
amendment, such as tax credits of up to $9,600 for each unemployed or 
disabled veteran hired by a business, offer further help by encouraging 
companies to give our veterans the chance they deserve to work.
  As Secretary Panetta said at the recent roundtable, ``the best thing 
we could do to honor those that have served is to make sure that when 
they come back, they have some opportunity to be able to become a part 
of our society and not just wind up on the unemployment rolls.'' 
Striving to increase those opportunities is the absolute least we 
should do.
  In that light, I strongly believe we should take all reasonable steps 
possible to provide our servicemembers and veterans with the training 
they need to make the transition into the civilian workforce. We should 
also do all we can to encourage companies to hire veterans returning 
from Iraq, Afghanistan and elsewhere around the world.
  For these reasons, I am very pleased to see the Senate considering 
the Tester amendment today. At the same time, it is my practice to vote 
``present'' on legislation which contains the potential or appearance 
of association with the private business activity of my spouse. As 
such, and in consultation with the Senate Select Committee on Ethics, I 
voted ``present'' in this particular instance, despite my overwhelming 
support for the vast majority of this amendment.
  Mr. President, over the past year, I have been pleased to support 
many of the concepts contained in H.R. 674, as amended and passed by 
the Senate today. This June, I joined Senator Patty Murray, chair of 
the Veterans' Affairs Committee, by cosponsoring the Hiring Heroes Act, 
which is the source of a great number of provisions in this bill 
intended to address the high unemployment rate of our Nation's 
veterans. This bill also now contains the President's proposal to offer 
tax credits to businesses that hire unemployed and disabled veterans--I 
have supported this proposal since the President announced it in 
September, and I continue to believe that providing tax

[[Page 17040]]

incentives to businesses for hiring veterans is an excellent means of 
fostering job creation while helping to address veteran unemployment 
rates.
  And of course, I could not be more pleased to have helped to author 
the repeal of the 3 percent withholding provision that is at the heart 
of H.R. 674. This provision will greatly aid small businesses that are 
hard-hit by current law requirements that withhold a portion of 
payments to contractors until they pay taxes on the earnings. By 
repealing this mandate, which threatens to overburden business owners 
and taxpayers alike, and stifle the economy at a time when we cannot 
afford any unnecessary obstacles in the road to recovery, H.R. 674 will 
help businesses, their owners, and their employees all over our Nation.
  For these reasons, I was gratified to see the Senate pass H.R. 674 
today. However, it is my practice to vote ``present'' on legislation 
which contains the potential or appearance of association with the 
private business activity of my spouse. As such, and in consultation 
with the Senate Select Committee on Ethics, I voted ``present'' in this 
particular instance, despite my overwhelming support for the vast 
majority of this bill.


                            VOTE EXPLANATION

 Mrs. HAGAN. Mr. President, I was unavoidably detained for 
rollcall vote No. 204, passage of H.R. 674 as amended. This legislation 
repeals the imposition of 3 percent withholding on certain payments 
made to vendors by government agencies. It also includes an amendment I 
supported to provide our veterans with greater job opportunities in 
today's difficult economy.
  Had I been present for rollcall vote No. 204, I would have voted yea 
on final passage.
  The PRESIDING OFFICER. The majority leader.

                          ____________________