[House Report 111-451]
[From the U.S. Government Publishing Office]
111th Congress Report
HOUSE OF REPRESENTATIVES
2d Session 111-451
======================================================================
VETERANS EMPLOYMENT AND HOME PRESERVATION ACT OF 2010
_______
March 22, 2010.--Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
_______
Mr. Filner, from the Committee on Veterans' Affairs, submitted the
following
R E P O R T
[To accompany H.R. 3976]
[Including cost estimate of the Congressional Budget Office]
The Committee on Veterans' Affairs, to whom was referred
the bill (H.R. 3976) to extend certain expiring provisions
providing enhanced protections for servicemembers relating to
mortgages and mortgage foreclosure, having considered the same,
report favorably thereon with amendments and recommend that the
bill as amended do pass.
CONTENTS
Page
Amendment........................................................ 2
Purpose and Summary.............................................. 2
Background and Need for Legislation.............................. 3
Hearings......................................................... 3
Subcommittee Consideration....................................... 4
Committee Consideration.......................................... 4
Committee Votes.................................................. 4
Committee Oversight Findings..................................... 5
Statement of General Performance Goals and Objectives............ 5
New Budget Authority, Entitlement Authority, and Tax Expenditures 5
Earmarks and Tax and Tariff Benefits............................. 5
Committee Cost Estimate.......................................... 5
Congressional Budget Office Cost Estimate........................ 5
Federal Mandates Statement....................................... 7
Advisory Committee Statement..................................... 7
Constitutional Authority Statement............................... 7
Applicability to Legislative Branch.............................. 8
Section-by-Section Analysis of the Legislation................... 8
Changes in Existing Law Made by the Bill, as Reported............ 8
Amendment
The amendments are as follows:
Strike all after the enacting clause and insert the
following:
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Veterans Employment and Home
Preservation Act of 2010''.
SEC. 2. EXTENSION OF ENHANCED PROTECTIONS FOR SERVICEMEMBERS RELATING
TO MORTGAGES AND MORTGAGE FORECLOSURE UNDER
SERVICEMEMBERS CIVIL RELIEF ACT.
(a) Extension.--Paragraph (2) of section 2203(c) of the Housing and
Economic Recovery Act of 2008 (Public Law 110-289) is amended--
(1) by striking ``December 31, 2010'' and inserting
``December 31, 2015''; and
(2) by striking ``January 1, 2011'' and inserting ``January
1, 2016''.
(b) Protection for Surviving Spouse.--
(1) In general.--Section 303 of the Servicemembers Civil
Relief Act (50 U.S.C. App. 533) is amended by adding at the end
the following new subsection:
``(e) Protection for Surviving Spouse.--With respect to a
servicemember who dies while in military service and whose death is
service-connected, this section shall apply to the surviving spouse of
the servicemember if such spouse is the successor in interest to
property covered under subsection (a).''.
(2) Effective date.--Subsection (e) of section 303 of such
Act, as added by paragraph (1), shall apply to a surviving
spouse of a servicemember whose death is on or after the date
of the enactment of this Act.
SEC. 3. TEMPORARY REDUCTION OF REQUIRED AMOUNT OF WAGES FOR ON-THE-JOB
TRAINING PROGRAMS.
(a) In General.--
(1) Reducing requirement.--Clause (ii) of section
3677(b)(1)(A) of title 38, United States Code, is amended by
striking ``85 per centum'' and inserting ``60 percent''.
(2) Effective date.--The amendment made by paragraph (1)
shall take effect on October 1, 2010, and shall apply to a
veteran who enrolls in a program of training on the job
approved under section 3677 of such title on or after such
date.
(b) Sunset.--
(1) Reversion.--Effective October 1, 2013, clause (ii) of
section 3677(b)(1)(A) of title 38, United States Code, as
amended by subsection (a) of this section, is amended by
striking ``60 percent'' and inserting ``85 percent''.
(2) Application.--The amendment made by paragraph (1) shall
apply to a veteran who enrolls in a program of training on the
job approved under section 3677 of such title on or after
October 1, 2013.
(c) GAO Report.--Not later than October 1, 2013, the Comptroller
General of the United States shall submit to the Committee on Veterans'
Affairs of the House of Representatives and the Committee on Veterans'
Affairs of the Senate a report on the effects of the amendment made by
subsection (a)(1) that reduces the wage increase requirement under
section 3677(b)(1)(A)(ii) of title 38, United States Code.
Amend the title so as to read:
A bill to extend certain expiring provisions providing
enhanced protections for servicemembers relating to mortgages
and mortgage foreclosure, and for other purposes.
Purpose and Summary
H.R. 3976 was introduced by Representative Thomas S. P.
Perriello of Virginia, on October 29, 2009. H.R. 3976, as
amended, would amend Public Law 110-289 (122 Stat. 2654), the
``Housing and Economic Recovery Act of 2008,'' by extending
through December 31, 2015, specified protections for
servicemembers relating to mortgages and mortgage foreclosures.
In addition, H.R. 3976 was amended to include the provisions of
H.R. 4079, which would amend title 38, United States Code, to
temporarily reduce the increase in wages paid by employers to
veterans enrolled in on-the-job training (OJT) programs. H.R.
4079 was introduced by Representative Thomas S. P. Perriello of
Virginia on November 16, 2009.
Background and Need for Legislation
The ``Housing and Economic Recovery Act of 2008,'' Public
Law 110-289 (122 Stat. 2654), amended the Servicemembers Civil
Relief Act (50 U.S.C. App. 501 et seq.)to provide
servicemembers protection against mortgage foreclosure and extended the
period for an extension of stay of proceedings from 90 days to nine
months. The extension for protection against foreclosure is slated to
expire on December 31, 2010, and the extension of the period for a stay
of proceedings is due to expire on January 1, 2011.
H.R. 3976, would amend section 2203 of Public Law 110-289
(122 Stat. 2654, 2849) by extending those enhanced protections
for servicemembers relating to mortgages and mortgage
foreclosure under Servicemembers Civil Relief Act for an
additional five years. This bill also allows surviving spouses
of servicemembers who have died while in military service, to
receive protection against mortgage foreclosure and a stay of
proceedings if the individual is the successor in interest to
the servicemember's property and the servicemember's death was
service-connected. The provisions of the bill also would be
effective on or after date of enactment.
Section 3 of H.R. 3976, as amended to include provisions
from H.R. 4079, would amend section 3677 of title 38, United
States Code, to reduce the final statutory on-the-job training
wage increase from 85 percent to 60 percent of a fully
qualified employee to allow additional businesses to
participate in this program. The National Association of State
Approving Agencies stated that due to the economic climate,
many businesses are unable to participate in the OJT training
program due to the statutory requirement that the employer must
increase the wage paid to a veteran participating in OJT. That
inability to increase the wages by the statutory amount has
resulted in fewer OJT opportunities for veterans. Currently, an
employer is required to provide a beginning wage of at least 50
percent of the wage for fully-trained employees, therefore only
a ten percent increase wage is required but this increase can
be exceeded at the employer's discretion.
As part of a three-year pilot program, the Government
Accountability Office would be required to submit a report to
Congress on the effects of reducing the wage increase
requirements at the end of the pilot program.
Hearings
On February 25, 2010, the Subcommittee on Economic
Opportunity conducted a legislative hearing on various bills
introduced during the 111th Congress, including H.R. 3976 and
H.R. 4079. The Following witnesses testified: The Honorable
John J. Hall of New York; The Honorable Adam H. Putnam of
Florida; The Honorable Joe Sestak of Pennsylvania; The
Honorable Adam Smith of Washington; The Honorable Michael R.
Turner of Ohio; Mr. Robert W. Madden, Assistant Director,
National Economic Commission, The American Legion; Mr. Justin
Brown, Legislative Associate, National Legislative Service,
Veterans of Foreign Wars; Mr. Timothy S. Embree, Legislative
Associate, Iraq and Afghanistan Veterans of America; Mr. James
Bombard, Legislative Director, National Association of State
Approving Agencies; Mr. Mark E. Sullivan, Law Offices of Mark
E. Sullivan, P.A.; Col. Shawn Shumake, U.S. Army, Director,
Office of Legal Policy, Office of the Under Secretary of
Defense (Personnel and Readiness), Program Integration and
Legal Policy, U.S. Department of Defense; Mr. Keith M. Wilson,
Director of Education Service, Veterans Benefits
Administration, U.S. Department of Veterans Affairs,
accompanied by Mr. Mark Bologna, Director of Loan Guaranty
Service, Veteran Benefits Administration, U.S. Department of
Veterans Affairs and Mr. F. John Brizzi, Jr., Deputy Assistant
General Counsel, U.S. Department of Veterans Affairs. Those
submitting statements for the record included: The Honorable
Bob Filner of California; The Honorable Ron Klein of Florida;
Ms. Patricia E. Apy, American Bar Association; Ms. Stacy
Bannerman of Medford, Oregon; Ms. Kelly Hruska, Government
Relations Deputy Director, National Military Family
Association; Mr. Brian Hawthorne, Legislative Director, Student
Veterans of America; and, the Pennsylvania Association of
Private School Administrators.
Subcommittee Consideration
On March 4, 2010, the Subcommittee on Economic Opportunity
met in open markup session and ordered favorably forwarded to
the full Committee H.R. 3976, as amended, and H.R. 4079, as
amended, by voice vote. During consideration of the bill the
following amendment was considered:
An amendment by Mr. Perriello of Virginia to make a
technical correction by striking the word ``Recover''
and insert ``Recovery'' was agreed to by voice vote.
During consideration of H.R. 4079 the following amendment
in the nature of a substitute was considered:
An amendment in the nature of a substitute by Mr.
Perriello of Virginia to make a change to the bill that
would cap the wage increase percentage at 60 percent,
terminate the program in three years, and require GAO
to submit a report to Congress was agreed to by voice
vote.
Committee Consideration
On March 10, 2010, the full Committee met in an open markup
session, a quorum being present, and ordered H.R. 3976, as
amended, reported favorably to the House of Representatives, by
voice vote. During consideration of the bill the following
amendment was considered:
An amendment in the nature of a substitute offered by
Mr. Perriello of Virginia incorporating the provisions
of H.R. 4079, as amended, and providing for a new short
title was agreed to by voice vote.
Committee Votes
Clause 3(b) of rule XIII of the Rules of the House of
Representatives requires the Committee to list the record votes
on the motion to report the legislation and amendments thereto.
There were no record votes taken on amendments or in connection
with ordering H.R. 3976 reported to the House. A motion by Mr.
Miller of Florida to order H.R. 3976,as amended, reported
favorably to the House of Representatives was agreed to by voice vote.
Committee Oversight Findings
In compliance with clause 3(c)(1) of rule XIII and clause
(2)(b)(1) of rule X of the Rules of the House of
Representatives, the Committee's oversight findings and
recommendations are reflected in the descriptive portions of
this report.
Statement of General Performance Goals and Objectives
In accordance with clause 3(c)(4) of rule XIII of the Rules
of the House of Representatives, the Committee's performance
goals and objectives are reflected in the descriptive portions
of this report.
New Budget Authority, Entitlement Authority, and Tax Expenditures
In compliance with clause 3(c)(2) of rule XIII of the Rules
of the House of Representatives, the Committee adopts as its
own the estimate of new budget authority, entitlement
authority, or tax expenditures or revenues contained in the
cost estimate prepared by the Director of the Congressional
Budget Office pursuant to section 402 of the Congressional
Budget Act of 1974.
Earmarks and Tax and Tariff Benefits
H.R. 3976 does not contain any congressional earmarks;
limited tax benefits, or limited tariff benefits as defined in
clause 9 of rule XXI of the Rules of the House of
Representatives.
Committee Cost Estimate
The Committee adopts as its own the cost estimate on H.R.
3976 prepared by the Director of the Congressional Budget
Office pursuant to section 402 of the Congressional Budget Act
of 1974.
Congressional Budget Office Cost Estimate
Pursuant to clause 3(c)(3) of rule XIII of the Rules of the
House of Representatives, the following is the cost estimate
for H.R. 3976 provided by the Congressional Budget Office
pursuant to section 402 of the Congressional Budget Act of
1974:
U.S. Congress,
Congressional Budget Office,
Washington, DC, March 16, 2010.
Hon. Bob Filner,
Chairman, Committee on Veterans' Affairs,
House of Representatives, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for H.R. 3976, the Veterans
Employment and Home Preservation Act of 2010.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contact is Camille
Woodland.
Sincerely,
Douglas W. Elmendorf,
Director.
Enclosure.
H.R. 3976--Veterans Employment and Home Preservation Act of 2010
Summary: H.R. 3976 would temporarily loosen requirements
necessary for veterans to receive benefit payments from the
Department of Veterans Affairs (VA) for participating in on-
the-job training. CBO estimates that implementing the bill
would increase direct spending by $9 million over the 2011-2020
period.
Pay-as-you-go procedures apply because enacting the
legislation would affect direct spending.
H.R. 3976 contains no intergovernmental mandates as defined
in the Unfunded Mandates Reform Act (UMRA).
H.R. 3976 would impose private-sector mandates, as defined
in UMRA, on certain mortgage holders and other creditors. Based
on information from industry sources, CBO expects that the cost
of those mandates would fall below the annual threshold for
private-sector mandates ($141 million in 2010, adjusted
annually for inflation).
Estimated cost to the Federal Government: The estimated
budgetary impact of H.R. 3976 is shown in the following table.
The costs of this legislation fall within budget function 700
(veterans benefits and services).
--------------------------------------------------------------------------------------------------------------------------------------------------------
By fiscal year, in millions of dollars--
-----------------------------------------------------------------------------------------------------
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2011-2015 2011-2020
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CHANGES IN DIRECT SPENDING
Estimated Budget.................................. 2 2 3 1 * 0 0 0 0 0 9 9
Authority Estimated Outlays....................... 2 2 3 1 * 0 0 0 0 0 9 9
--------------------------------------------------------------------------------------------------------------------------------------------------------
Note: * = less than $500,000. Annual costs do not sum to totals because of rounding.
Basis of estimate: VA provides education benefits to
certain veterans participating in on-the-job training programs.
Under current law, for such programs to be eligible for
coverage under veterans benefits, the employer must pay
trainees a starting wage equaling at least 50 percent of the
full-time wage for that position. That amount must steadily
increase to at least 85 percent of the appropriate full-time
wage by the last month of the program.
Section 3 would temporarily reduce the requirement for
final pay to no less than 60 percent for veterans who begin
training in fiscal years 2011 through 2013. CBO expects that
such a change would increase the number of on-the-job training
programs that VA would approve for use of education benefits;
thus, CBO estimates that an additional 260 veterans would
receive an average of $7,000 in benefits from VA annually from
2011 through 2015. CBO estimates that implementing H.R. 3976
would increase direct spending by $9 million over the 2010-2020
period.
Pay-as-you-go considerations: The Statutory Pay-As-You-Go
Act of 2010 establishes budget reporting and enforcement
procedures for legislation affecting direct spending or
revenues. The net changes in outlays and revenues that are
subject to those pay-as-you-go procedures are shown in the
following table.
CBO ESTIMATE OF PAY-AS-YOU-GO EFFECTS FOR H.R. 3976 AS ORDERED REPORTED BY THE HOUSE COMMITTEE ON VETERANS' AFFAIRS ON MARCH 10, 2010
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By fiscal year, in millions of dollars--
--------------------------------------------------------------------------------------------------
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2010-2015 2010-2020
--------------------------------------------------------------------------------------------------------------------------------------------------------
NET INCREASE IN THE DEFICIT
Statutory Pay-As-You-Go Impact....................... 0 2 2 3 1 0 0 0 0 0 0 9 9
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Note: Annual costs do not sum to totals because of rounding.
Estimated impact on state, local, and tribal governments:
H.R. 3976 contains no intergovernmental mandates as defined in
UMRA and would impose no costs on state, local, or tribal
governments.
Estimated impact on the private sector: Section 2 would
extend the expiration date by five years of enhanced
protections for servicemembers under the Servicemembers Civil
Relief Act (SCRA) relating to mortgages and mortgage
foreclosures. Furthermore, it would extend mortgage-related
protections under the SCRA to surviving spouses of
servicemembers who die while in military service. Those changes
would constitute mandates on mortgage holders. The cost of
complying with these mandates would be the loss associated with
delayed mortgage payments, delayed foreclosure, and interest-
rate limitations. Based on historical separation rates,
foreclosure rates, and mortgage-interest rates, CBO expects
that the cost of the mandate would be small relative to the
annual threshold for private-sector mandates ($141 million in
2010, adjusted annually for inflation).
Estimate prepared by: Federal Costs: Camille Woodland and
David Newman; Impact on State, Local, and Tribal Governments:
Lisa Ramirez-Branum; Impact on the Private Sector: Elizabeth
Bass.
Estimate approved by: Theresa Gullo, Deputy Assistant
Director for Budget Analysis.
Federal Mandates Statement
The Committee adopts as its own the estimate of Federal
mandates regarding H.R. 3976 prepared by the Director of the
Congressional Budget Office pursuant to section 423 of the
Unfunded Mandates Reform Act.
Advisory Committee Statement
No advisory committees within the meaning of section 5(b)
of the Federal Advisory Committee Act would be created by H.R.
3976.
Constitutional Authority Statement
Pursuant to clause 3(d)(1) of rule XIII of the Rules of the
House of Representatives, the Committee finds that the
Constitutional authority for H.R. 3976 is provided by Article
I, section 8 of the Constitution of the United States.
Applicability to Legislative Branch
The Committee finds that the legislation does not relate to
the terms and conditions of employment or access to public
services or accommodations within the meaning of section
102(b)(3) of the Congressional Accountability Act.
Section-by-Section Analysis of the Legislation
Section 1. Short title
This section provides the short title of H.R. 3976, as
amended, as the ``Veterans Employment and Home Preservation Act
of 2010.''
Section 2. Extension of enhanced protections for servicemembers
relating to mortgages and mortgage foreclosure under
Servicemembers Civil Relief Act
This section extends the protection against mortgage
foreclosure of nine months until December 31, 2015, and
maintains the stay of proceedings period of nine months until
January 1, 2016.
This section allows surviving spouses of servicemembers who
have died while in military service and their death is service-
connected, to receive protection against mortgage foreclosure
and a stay of proceedings if the individual is the successor in
interest to the servicemember's property and the
servicemember's death was service-connected.
This section also establishes an effective date of on or
after date of enactment of this Act.
Section 3. Temporary reduction of required amount of wages for on-the-
job training programs
This section reduces the wage increase from 85 percent to
60 percent with the wage increase taking place no later than
the last full month of the training period. This section
provides an effective date of October 1, 2010, and would apply
to individuals participating in this program on or after such
date. This section sunsets the pilot program on October 1,
2013, and requires that U.S. Government Accountability Office
submit a report to Congress on the effect of reducing the wage
increase requirements.
Changes in Existing Law Made by the Bill, as Reported
In compliance with clause 3(e) of rule XIII of the Rules of
the House of Representatives, changes in existing law made by
the bill, as reported, are shown as follows (existing law
proposed to be omitted is enclosed in black brackets, new
matter is printed in italic, existing law in which no change is
proposed is shown in roman):
SECTION 2203 OF THE HOUSING AND ECONOMIC RECOVERY ACT OF 2008
SEC. 2203. ENHANCEMENT OF PROTECTIONS FOR SERVICEMEMBERS RELATING TO
MORTGAGES AND MORTGAGE FORECLOSURES.
(a) * * *
* * * * * * *
(c) Effective Date; Sunset.--
(1) * * *
(2) Sunset.--The amendments made by subsection (a)
shall expire on [December 31, 2010] December 31, 2015.
Effective [January 1, 2011] January 1, 2016, the
provisions of subsections (b) and (c) of section 303 of
the Servicemembers Civil Relief Act, as in effect on
the day before the date of the enactment of this Act,
are hereby revived.
----------
SERVICEMEMBERS CIVIL RELIEF ACT
* * * * * * *
TITLE III--RENT, INSTALLMENT CONTRACTS, MORTGAGES, LIENS, ASSIGNMENT,
LEASES
* * * * * * *
SEC. 303. MORTGAGES AND TRUST DEEDS.
(a) * * *
* * * * * * *
(e) Protection for Surviving Spouse.--With respect to a
servicemember who dies while in military service and whose
death is service-connected, this section shall apply to the
surviving spouse of the servicemember if such spouse is the
successor in interest to property covered under subsection (a).
* * * * * * *
----------
SECTION 3677 OF TITLE 38, UNITED STATES CODE
Sec. 3677. Approval of training on the job
(a) * * *
(b)(1) The training establishment offering training which is
desired to be approved for the purposes of this chapter must
submit to the appropriate State approving agency a written
application for approval which, in addition to furnishing such
information as is required by the State approving agency,
contains a certification that--
(A) the wages to be paid the eligible veteran or
person (i) upon entrance into training, are not less
than wages paid nonveterans in the same training
position and are at least 50 per centum of the wages
paid for the job for which the veteran or person is to
be trained, and (ii) such wages will be increased in
regular periodic increments until, not later than the
last full month of the training period, they will be at
least [85 per centum] 60 percent of the wages paid for
the job for which such eligible veteran or person is
being trained; and
* * * * * * *
[Effective October 1, 2010, clause (ii) of section 3677(b)(1)(A), as
amended by section 3(a) of H.R. 3976, appears below. Effective October
1, 2013, section 3(b) of H.R. 3976, provides for an amendment to such
clause as follows:]
Sec. 3677. Approval of training on the job
(a) * * *
(b)(1) The training establishment offering training which is
desired to be approved for the purposes of this chapter must
submit to the appropriate State approving agency a written
application for approval which, in addition to furnishing such
information as is required by the State approving agency,
contains a certification that--
(A) the wages to be paid the eligible veteran or
person (i) upon entrance into training, are not less
than wages paid nonveterans in the same training
position and are at least 50 per centum of the wages
paid for the job for which the veteran or person is to
be trained, and (ii) such wages will be increased in
regular periodic increments until, not later than the
last full month of the training period, they will be at
least [60 percent] 85 percent of the wages paid for the
job for which such eligible veteran or person is being
trained; and
* * * * * * *