[House Report 112-242]
[From the U.S. Government Publishing Office]
112th Congress Rept. 112-242
HOUSE OF REPRESENTATIVES
1st Session Part 1
======================================================================
VETERANS OPPORTUNITY TO WORK ACT OF 2011
_______
October 11, 2011.--Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
_______
Mr. Miller of Florida, from the Committee on Veterans' Affairs,
submitted the following
R E P O R T
together with
DISSENTING VIEWS
[To accompany H.R. 2433]
[Including cost estimate of the Congressional Budget Office]
The Committee on Veterans' Affairs, to whom was referred
the bill (H.R. 2433) to amend title 38, United States Code, to
make certain improvements in the laws relating to the
employment and training of veterans, and for other purposes,
having considered the same, report favorably thereon with an
amendment and recommend that the bill as amended do pass.
CONTENTS
Page
Amendment........................................................ 2
Purpose and Summary.............................................. 9
Background and Need for Legislation.............................. 10
Hearings......................................................... 19
Committee Considerations......................................... 20
Committee Votes.................................................. 20
Committee Oversight Findings..................................... 20
Statement of General Performance Goals and Objectives............ 20
New Budget Authority, Entitlement Authority, and Tax Expenditures 21
Earmarks and Tax and Tariff Benefits............................. 21
Committee Cost Estimate.......................................... 21
Congressional Budget Office Cost Estimate........................ 21
Federal Mandates Statement....................................... 31
Advisory Committee Statement..................................... 31
Statement of Constitutional Authority............................ 31
Applicability to Legislative Branch.............................. 31
Section-by-Section Analysis of the Legislation................... 31
Changes in Existing Law Made by the Bill, as Reported............ 35
Dissenting Views................................................. 49
Amendment
The amendment is as follows:
Strike all after the enacting clause and insert the
following:
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Veterans Opportunity
to Work Act of 2011''.
(b) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title; table of contents.
TITLE I--RETRAINING VETERANS
Sec. 101. Veterans retraining assistance program.
TITLE II--IMPROVING THE TRANSITION ASSISTANCE PROGRAM
Sec. 201. Transition Assistance Program contracting.
Sec. 202. Mandatory participation in Transition Assistance Program.
Sec. 203. Report on Transition Assistance Program.
Sec. 204. Transition Assistance Program outcomes.
Sec. 205. Comptroller General review.
TITLE III--IMPROVING THE TRANSITION OF VETERANS TO CIVILIAN EMPLOYMENT
Sec. 301. Reauthorization and improvement of demonstration project on
credentialing and licensure of veterans.
Sec. 302. Inclusion of performance measures in annual report on veteran
job counseling, training, and placement programs of the Department of
Labor.
Sec. 303. Clarification of priority of service for veterans in
Department of Labor job training programs.
Sec. 304. Evaluation of individuals receiving training at the National
Veterans' Employment and Training Services Institute.
Sec. 305. Requirements for full-time disabled veterans' outreach
program specialists and local veterans' employment representatives.
Sec. 306. Report on findings of the Department of Defense and
Department of Labor credentialing work group.
TITLE IV--IMPROVEMENTS TO UNIFORMED SERVICES EMPLOYMENT AND
REEMPLOYMENT RIGHTS
Sec. 401. Clarification of benefits of employment covered under USERRA.
TITLE V--OTHER MATTERS
Sec. 501. Extension of certain expiring provisions of law.
Sec. 502. Department of Veterans Affairs housing loan guarantees for
surviving spouses of certain totally disabled veterans.
Sec. 503. Extension of homeless veterans reintegration programs.
Sec. 504. Reimbursement rate for ambulance services.
Sec. 505. Annual reports on Post-9/11 Educational Assistance Program
and Survivors' and Dependents' Educational Assistance Program.
Sec. 506. Limitation on amount authorized to be appropriated for
employee travel, printing, and fleet vehicles.
Sec. 507. Extension of reduced pension for certain veterans covered by
Medicaid plans for services furnished by nursing facilities.
Sec. 508. Statutory Pay-As-You-Go-Act of 2010.
TITLE I--RETRAINING VETERANS
SEC. 101. VETERANS RETRAINING ASSISTANCE PROGRAM.
(a) Program Authorized.--
(1) In general.--In accordance with this section, during the
period beginning on June 1, 2012, and ending on March 31, 2014,
the Secretary of Labor shall provide for monthly payments of
retraining assistance to eligible veterans. Payments of
retraining assistance under this section shall be made by the
Secretary of Labor through the Secretary of Veterans Affairs.
(2) Number of eligible veterans.--The number of eligible
veterans who participate in the program may not exceed--
(A) 45,000 during fiscal year 2012; and
(B) 55,000 during the period beginning October 1,
2012, and ending March 31, 2014.
(b) Retraining Assistance.--Except as provided by subsection (i),
each veteran who participates in the program established under
subsection (a)(1) shall be entitled to up to 12 months of retraining
assistance, as determined by the Secretary of Labor. 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) or 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 associates degree or a certificate (or other
similar evidence of the completion of the program of education
or training); and
(4) is designed to provide training for a high-demand
occupation, as determined by the Secretary of Labor.
(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.--For purposes of this section, an eligible veteran
is a veteran who--
(1) is at least 35 years of age but not more than 60 years of
age;
(2) was last discharged from active duty service in the Armed
Forces with an honorable discharge;
(3) as of the date of the submittal of the application for
assistance under this section, has been unemployed for a period
of time determined by the Secretary, with special consideration
given to veterans who have been unemployed for at least 26
continuous weeks;
(4) is not eligible to apply for educational assistance under
chapter 30, 31, 33, or 35 of title 38, United States Code; and
(5) by not later than October 1, 2013, submits to the
Secretary of Labor an application containing such information
and assurances as the Secretary may require.
(f) Report.--Not later than July 1, 2014, the Secretary of Labor and
the Secretary of Veterans Affairs shall jointly submit to the
Committees on Veterans' Affairs of the Senate and the House of
Representatives a report on the retraining assistance provided under
this section, including--
(1) the total number of--
(A) eligible veterans who participated;
(B) credit hours completed; and
(C) associates degrees or certificates awarded (or
other similar evidence of the completion of the program
of education or training earned); and
(2) data related to the employment status of eligible
veterans who participated.
(g) Joint Agreement.--The Secretary of Labor and the Secretary of
Veterans Affairs shall enter into an agreement on carrying out this
section.
(h) Source of Funds.--Payments under this section shall be made from
amounts appropriated to the readjustment benefits account of the
Department of Veterans Affairs.
(i) Termination of Authority.--The authority to make payments under
this section shall terminate on March 31, 2014.
TITLE II--IMPROVING THE TRANSITION ASSISTANCE PROGRAM
SEC. 201. 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) Authority 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--
``(1) counseling;
``(2) assistance in identifying employment and training
opportunities and help in obtaining such employment and
training;
``(3) other related information and services under such
section; and
``(4) any other services that the Secretary determines are
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), by not later than 24 months after the
date of the enactment of this Act.
SEC. 202. MANDATORY PARTICIPATION IN TRANSITION ASSISTANCE PROGRAM.
Section 1144(c) of title 10, United States Code, is amended by
striking ``shall encourage'' and all that follows and inserting ``shall
encourage the participation of members of the armed forces in pay
grades E-8 and above and O-6 and above who are eligible for assistance
under the program and shall require the participation of all other
members of the armed forces who are eligible for assistance under the
program unless a documented urgent operational requirement prevents
attendance or an individual service member, with written approval of
their commander, chooses to decline participation, in writing, based on
post-service employment or acceptance to an education program. Such
documentation shall be included in the personnel record of the
member.''.
SEC. 203. REPORT ON TRANSITION ASSISTANCE PROGRAM.
Section 1144 of title 10, United States Code, is amended by adding at
the end the following new subsection:
``(e) Reports and Audits.--(1) Not later than January 30 of each
year, the Secretary of Labor shall submit to the Committees on
Veterans' Affairs of the Senate and House of Representatives a report
on the program established under this section that includes the number
of members of the armed forces eligible for assistance under the
program who participated in the program within 30, 90, and 180 days of
being separated from active duty, and the percentages of all such
eligible participants who participated within each such time period.
``(2)(A) The Secretary of Labor shall enter into a contract with an
appropriate entity to conduct an audit of the program established under
this section not less frequently than once every three years and to
submit to the Secretary of Defense, the Secretary of Labor, the
Secretary of Veterans Affairs, and the Committees on Veterans' Affairs
of the Senate and House of Representatives a report containing the
results of each such audit.
``(B)(i) Except as provided in clause (ii), the Secretary of Labor
shall enter into the contract under subparagraph (A) with an
appropriate entity that is a small business concern owned and
controlled by veterans or a small business concern owned and controlled
by service-disabled veterans and that is included in the database of
veteran-owned businesses maintained under subsection (f) of section
8127 of title 38 and verified by the Secretary pursuant to paragraph
(4) of that subsection.
``(ii) If the Secretary of Labor is unable to enter into the contract
under subparagraph (A) with a qualified business concern described in
clause (i), the Secretary shall enter into such contract with another
qualified appropriate entity.
``(C) The Secretary of Labor shall enter into the contract under this
paragraph using funds made available for the State grant program
authorized under section 4102A of title 38.''.
SEC. 204. TRANSITION ASSISTANCE PROGRAM OUTCOMES.
Section 1144 of title 10, United States Code, as amended by section
202 and 203, is further amended by adding at the end the following new
subsection:
``(f) Program Outcomes.--The Secretary of Labor and the Secretary of
Defense shall jointly develop a method to assess the outcomes for
individuals who participate in the program established under this
section. Such method shall be designed to determine the following
outcomes:
``(1) The length of the period during which the individual
was unemployed following the individual's separation from
active duty.
``(2) The beginning salary paid to the individual for the
first job the individual obtained following such separation.
``(3) The number of months of school or other training the
individual attended during the first 12-month period following
such separation.''.
SEC. 205. COMPTROLLER GENERAL REVIEW.
Not later than one year 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 under section 1144 of title 10,
United States Code, and submit to Congress a report on the results of
the review and any recommendations of the Comptroller General for
improving the program.
TITLE III--IMPROVING THE TRANSITION OF VETERANS TO CIVILIAN EMPLOYMENT
SEC. 301. REAUTHORIZATION AND IMPROVEMENT OF DEMONSTRATION PROJECT ON
CREDENTIALING AND LICENSURE OF VETERANS.
Section 4114 of title 38, United States Code, is amended--
(1) in subsection (b)--
(A) in paragraph (1), by striking ``not less than
10'' and inserting ``not less than 5 but not more than
10''; and
(B) in paragraph (2), by striking ``consult with
appropriate Federal, State, and industry officials''
and inserting ``enter into a contract with an
appropriate entity representing a coalition of State
governors'';
(2) in subsection (g)--
(A) by striking ``Veterans Benefits, Health Care, and
Information Technology Act of 2006'' and inserting the
``Veterans Opportunity to Work Act of 2011''; and
(B) by striking ``September 30, 2009'' and inserting
``September 30, 2014'';
(3) in subsection (h)--
(A) by striking ``utilizing unobligated funds'' and
inserting ``using not more than $180,000 of the funds
in each fiscal year''; and
(B) by inserting before the period at the end the
following: ``, to be derived from amounts otherwise
made available to carry out sections 4103A and 4104 of
this title''; and
(4) by adding at the end the following new subsection:
``(i) Report to Congress.--Not later than 30 days after the last day
of a fiscal year during which the demonstration project under this
section is carried out, the Assistant Secretary, in coordination with
the entity with which the Assistant Secretary enters into a contract
under subsection (b)(2), shall submit to the Committees on Veterans'
Affairs of the Senate and House of Representatives a report on the
implementation of the demonstration project during that fiscal year.''.
SEC. 302. INCLUSION OF PERFORMANCE MEASURES IN ANNUAL REPORT ON VETERAN
JOB COUNSELING, TRAINING, AND PLACEMENT PROGRAMS OF
THE DEPARTMENT OF LABOR.
Section 4107(c) of title 38, United States Code, is amended--
(1) in paragraph (2), by striking ``clause (1)'' and
inserting ``paragraph (1)'';
(2) in paragraph (5), by striking ``and'' at the end;
(3) in paragraph (6), by striking the period and inserting
``; and''; and
(4) by adding at the end the following new paragraph:
``(7) performance measures for the provision of assistance
under this chapter, including--
``(A) the percentage of participants in programs
under this chapter who are employed after the 180-day
period following their completion of the program;
``(B) the percentage of such participants who are
employed after the one-year period following their
completion of the program;
``(C) the median earnings of such participants after
the 180-day period following their completion of the
program;
``(D) the median earnings of such participants after
the one-year period following their completion of the
program; and
``(E) the percentage of participants in such program
who complete a certificate, degree, diploma, licensure,
or industry-recognized credential while they are
participating in the program or within one year of
completing the program.''.
SEC. 303. 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. 304. 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) The Secretary shall require that each individual who receives
training provided by the Institute, or its successor, is given a final
examination to evaluate the individual's performance in receiving such
training. Each such evaluation shall be designed to provide the
individual with a grade, which shall be designated as either a passing
grade or a failing grade. The results of such final examination shall
be provided to the entity that sponsored the individual who received
the training.''.
(b) Effective Date.--Subsection (d) of section 4109 of title 38,
United States Code, shall apply with respect to training provided by
the National Veterans' Employment and Training Services Institute that
begins on or after the date of the enactment of this Act.
SEC. 305. 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.
``(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.
``(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.''.
SEC. 306. REPORT ON FINDINGS OF THE DEPARTMENT OF DEFENSE AND
DEPARTMENT OF LABOR CREDENTIALING WORK GROUP.
(a) In General.--The Secretary of Defense and the Secretary of Labor
shall jointly enter into a contract with a qualified organization or
entity jointly selected by the Secretaries to complete the study of 10
military occupational specialties already begun by the joint Department
of Defense and Department of Labor Credentialing Work Group to reduce
barriers to certification and licensure for transitioning members of
the Armed Forces and veterans. This study shall also include an
examination of current initiatives, programs, and authority already
established within the Department of Defense and the military services
to promote credentialing of members of the Armed Forces and identify
best practices that can be leveraged by all services to increase the
transferability of military education, training, experience, and
skills.
(b) Report.--The contract described in subsection (a) shall provide
that upon completion of the study described in such subsection, the
organization or entity with which the Secretary of Defense and the
Secretary of Labor entered into the contract shall submit to the
Secretary of Defense and the Secretary of Labor a report setting forth
the results of the study. The report shall include--
(1) a plan for leveraging existing successful initiatives,
programs, and authority to promote the credentialing of all
members of the Armed Forces; and
(2) such information as the Secretaries shall specify in the
contract.
(c) Submittal to Congress.--Not later than March 31, 2012, the
Secretary of Defense and the Secretary of Labor shall jointly submit to
Congress a report on the results of the study described in subsection
(a), together with such comments on the report as the Secretaries
jointly consider appropriate.
TITLE IV--IMPROVEMENTS TO UNIFORMED SERVICES EMPLOYMENT AND
REEMPLOYMENT RIGHTS
SEC. 401. 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''.
TITLE V--OTHER MATTERS
SEC. 501. EXTENSION OF CERTAIN EXPIRING PROVISIONS OF LAW.
(a) Adjustable Rate Mortgages.--Section 3707(a) of such title is
amended by striking ``2012'' and inserting ``2014''.
(b) Hybrid Adjustable Rate Mortgages.--Section 3707A(a) of such title
is amended by striking ``2012'' and inserting ``2014''.
(c) Pool of Mortgage Loans.--Section 3720(h)(2) of title 38, United
States Code, is amended by striking ``December 31, 2011'' and inserting
``December 31, 2016''.
(d) Loan Fees.--
(1) Extension of fees.--Section 3729(b)(2) of such title is
amended--
(A) in subparagraph (A)--
(i) in clause (iii), by striking ``October 1,
2011'' and inserting ``October 1, 2017''; and
(ii) in clause (iv), by striking ``October 1,
2011'' and inserting ``October 1, 2017'';
(B) in subparagraph (B)--
(i) in clause (i), by striking ``October 1,
2011'' and inserting ``October 1, 2017'';
(ii) by striking clauses (ii) and (iii) and
redesignating clause (iv) as clause (ii); and
(iii) in clause (ii), as so redesignated, by
striking ``October 1, 2013'' and inserting
``October 1, 2017'';
(C) in subparagraph (C)--
(i) in clause (i), by striking ``October 1,
2011'' and inserting ``October 1, 2017''; and
(ii) in clause (ii), by striking ``October 1,
2011'' and inserting ``October 1, 2017''; and
(D) in subparagraph (D)--
(i) in clause (i), by striking ``October 1,
2011'' and inserting ``October 1, 2017''; and
(ii) in clause (ii), by striking ``October 1,
2011'' and inserting ``October 1, 2017''.
(2) Effective date.--The amendments made by paragraph (1)
shall take effect on the later of--
(A) October 1, 2011; or
(B) the date of the enactment of this Act.
(e) Temporary Adjustment of Maximum Home Loan Guaranty Amount.--
Section 501 of the Veterans Benefits Improvement Act of 2008 (Public
Law 110-389; 122 Stat. 4175; 38 U.S.C. 3703 note) is amended by
striking ``December 31, 2011'' and inserting ``December 31, 2014''.
SEC. 502. DEPARTMENT OF VETERANS AFFAIRS HOUSING LOAN GUARANTEES FOR
SURVIVING SPOUSES OF CERTAIN TOTALLY DISABLED
VETERANS.
(a) In General.--Section 3701(b) of title 38, United States Code, is
amended by adding at the end the following new paragraph:
``(6) The term `veteran' also includes, for purposes of home
loans, the surviving spouse of a deceased veteran who dies and
who was in receipt of or entitled to receive (or but for the
receipt of retired or retirement pay was entitled to receive)
compensation at the time of death for a service-connected
disability rated totally disabling if--
``(A) the disability was continuously rated totally
disabling for a period of 10 or more years immediately
preceding death;
``(B) the disability was continuously rated totally
disabling for a period of not less than five years from
the date of such veteran's discharge or other release
from active duty; or
``(C) the veteran was a former prisoner of war who
died after September 30, 1999, and the disability was
continuously rated totally disabling for a period of
not less than one year immediately preceding death.''.
(b) Effective Date.--The amendment made by subsection (a) shall apply
with respect to a loan guaranteed after the date of the enactment of
this Act.
(c) Clarification With Respect to Certain Fees.--Fees shall be
collected under section 3729 of title 38, United States Code, from a
person described in paragraph (6) of subsection (b) of section 3701 of
such title, as added by subsection (a), in the same manner as such fees
are collected from a person described in paragraph (2) of such
subsection.
SEC. 503. EXTENSION OF HOMELESS VETERANS REINTEGRATION PROGRAMS.
(a) Extension.--Section 2021(e)(1)(F) of title 38, United States
Code, is amended by striking ``2011'' and inserting ``2012''.
(b) Report.--Not later than one year after the date of the enactment
of this Act, the Comptroller General of the United States shall submit
to Congress a report on the operation and results of the homeless
veterans reintegration programs under section 2021 of title 38, United
States Code.
SEC. 504. 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. 505. ANNUAL REPORTS ON POST-9/11 EDUCATIONAL ASSISTANCE PROGRAM
AND SURVIVORS' AND DEPENDENTS' EDUCATIONAL
ASSISTANCE PROGRAM.
(a) Reports Required.--
(1) In general.--Subchapter III of chapter 33 of title 38,
United States Code, is amended by adding at the end the
following new section:
``Sec. 3325. Reporting requirement
``(a) In General.--For each academic year--
``(1) the Secretary of Defense shall submit to Congress a
report on the operation of the program provided for in this
chapter; and
``(2) the Secretary shall submit to Congress a report on the
operation of the program provided for in this chapter and the
program provided for under chapter 35 of this title.
``(b) Contents of Secretary of Defense Reports.--The Secretary of
Defense shall include in each report submitted under this section--
``(1) information indicating--
``(A) the extent to which the benefit levels provided
under this chapter are adequate to achieve the purposes
of inducing individuals to enter and remain in the
Armed Forces and of providing an adequate level of
financial assistance to help meet the cost of pursuing
a program of education;
``(B) whether it is necessary for the purposes of
maintaining adequate levels of well-qualified active-
duty personnel in the Armed Forces to continue to offer
the opportunity for educational assistance under this
chapter to individuals who have not yet entered active-
duty service; and
``(C) describing the efforts under section 3323(b) of
this title to inform members of the Armed Forces of the
active duty service requirements for entitlement to
educational assistance benefits under this chapter and
the results from such efforts; and
``(2) such recommendations for administrative and legislative
changes regarding the provision of educational assistance to
members of the Armed Forces and veterans, and their dependents,
as the Secretary of Defense considers appropriate.
``(c) Contents of Secretary of Veterans Affairs Reports.--The
Secretary shall include in each report submitted under this section--
``(1) information concerning the level of utilization of
educational assistance and of expenditures under this chapter
and under chapter 35 of this title;
``(2) the number of credit hours, certificates, degrees, and
other qualifications earned by beneficiaries under this chapter
and under chapter 35 of this title during the academic year
covered by the report; and
``(3) such recommendations for administrative and legislative
changes regarding the provision of educational assistance to
members of the Armed Forces and veterans, and their dependents,
as the Secretary considers appropriate.
``(d) Termination.--No report shall be required under this section
after January 1, 2021.''.
(2) Clerical amendment.--The table of sections at the
beginning of such chapter is amended by inserting after the
item relating to section 3324 the following new item:
``3325. Reporting requirement.''.
(3) Deadline for submittal of first report.--The first
reports required under section 3325 of title 38, United States
Code, as added by paragraph (1), shall be submitted by not
later than November 1, 2012, and shall cover the 2011-2012
academic year.
(b) Repeal of Report on All Volunteer-Force Educational Assistance
Program.--
(1) In general.--Chapter 30 of such title is amended by
striking section 3036.
(2) Clerical amendment.--The table of sections at the
beginning of such chapter is amended by striking the item
relating to section 3036.
SEC. 506. LIMITATION ON AMOUNT AUTHORIZED TO BE APPROPRIATED FOR
EMPLOYEE TRAVEL, PRINTING, AND FLEET VEHICLES.
The amount authorized to be appropriated for the Department of
Veterans Affairs for employee travel, printing, and fleet vehicles for
fiscal year 2012 shall not exceed $385,000,000.
SEC. 507. 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 ``May 31, 2016''.
SEC. 508. 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
Purpose and Summary
H.R. 2433 was introduced on July 7, 2011, by Chairman Jeff
Miller of Florida. H.R. 2433, as amended, would amend title 38,
United States Code, to make certain improvements in the laws
relating to the employment and training of veterans, and for
other purposes. H.R. 2433, as amended, incorporates provisions
from H.R. 120, introduced by Mrs. Foxx of North Carolina, and
H.R. 2274, introduced by Mr. Bilirakis of Florida. The bill
also includes two free-standing provisions that would reduce
discretionary spending by preventing the Department of Veterans
Affairs (VA) from being overcharged for the provision of
ambulance services by non-VA providers to certain veterans and
capping certain expenditures related to employee travel, fleet
vehicles, and printing costs at VA. Taken together, the bill
would improve the provision of Federal transition, education,
vocational training, and loan guaranty benefits to members of
the Armed Forces, veterans, and survivors.
Background and Need for Legislation
TITLE I--RETRAINING VETERANS
Section 101--Veterans Retraining Assistance Program
The total number of unemployed veterans has stayed
consistently around 1 million throughout most of FY 2011.
According to the U.S. Department of Labor's (DoL) Bureau of
Labor Statistics (BLS), there were 877,000 unemployed veterans
in the United States during the month of August 2011. Of this
number 577,000, or 66 percent, were between the ages of 35-64.
Despite these high numbers, unfilled jobs have also remained
high. For example, data from the Conference Board show that
over 4 million jobs are available and listed on the Internet.
The Committee is also aware of employers who have expressed
their concern about a lack of qualified job seekers and that
job applicants do not have the proper training for these
openings.
BLS data show that Americans with higher education/training
levels have significantly lower unemployment rates and higher
weekly earnings. For example, in 2010, high school graduates
had an unemployment rate of 10.3 percent and weekly earnings of
$626. Those with an Associate's Degree experienced unemployment
at a rate of 7 percent and had average weekly earnings of $767,
a 22 percent increase above the earnings of high school
graduates. Having a Bachelor's Degree reduced the unemployment
rate to 5.4 percent while increasing weekly earnings to $1,038.
Therefore, the challenge before the Committee is to
increase the skills and qualifications of unemployed veterans.
By doing this, veterans will be better positioned not only for
today's job market, but also for an expanding job market as the
stagnant economy improves. Upgrading skills and qualifications
is especially critical for the 66 percent of unemployed
veterans between the ages of 35 and 64. One proven way to do
that is through providing them with meaningful education and
training benefits.
Unlike younger or recently discharged older veterans who
have eligibility to obtain education and training through the
Post-9/11 GI Bill, older veterans seldom have access to similar
education or training programs. This is because many of these
veterans would have passed their eligibility period to use the
predecessor education benefit to the Post-9/11 GI Bill, the
Montgomery GI Bill (MGIB), and few would have the service
required to be eligible for the Post-9/11 GI Bill. In times of
economic downturn, this gap in benefits is particularly
troubling since middle-aged veterans would typically have
significantly higher financial obligations than younger
veterans.
Section 101 would provide an opportunity for unemployed
veterans aged 35 to 60 to gain new skills by offering them a
temporary education and training benefit. The program would
allow these veterans to enroll in courses at community colleges
and technical training schools. Education payments would be
administered under the rules governing the existing MGIB
program and would only be payable to veterans enrolled in
education or training courses that lead to an associate degree,
certificate, or similar qualification, in a high demand
occupation as determined by the Secretary of Labor.
Section 101 would authorize the DoL and the VA to enroll up
to 100,000 unemployed veterans beginning June 1, 2011, through
March 31, 2014. Veterans would be eligible to receive the
monthly MGIB benefit that is in effect for up to 12 months.
However, payments could not be made after March 31, 2014. To be
eligible, veterans must be at least 35 but not more than 60
years old, have an honorable discharge, be unemployed as
determined by the Secretary of Labor with special consideration
given to those who have been unemployed for at least 26
consecutive weeks and have no eligibility for other VA-
administered education programs. The Committee notes the bill's
provision in subsection (g) directing DoL and VA to reach a
joint agreement on administration of the program and expects
both Departments to move aggressively to bring the program
online.
Section 101 also includes a provision requiring program
participants to certify attendance on a monthly basis as is
done under the existing MGIB. This provision has been included
to minimize overpayments to enrollees who do not complete their
course of training. The Committee would expect VA to ensure
that enrollees understand that failure to certify on a monthly
basis may result in disenrollment and indebtedness to the
government, just as in any other education or training program
managed by VA.
TITLE II--IMPROVING THE TRANSITION ASSISTANCE PROGRAM
Section 201--Transition Assistance Program contracting
The purpose of the Transition Assistance Program (TAP) is
to prepare departing servicemembers for civilian life by
providing them with a two and one half day course that focuses
on finding a job after discharge. TAP consists of three phases:
pre-separation counseling by Department of Defense (DoD)
military or civilian personnel designed to make the
servicemember aware of available career options, an employment
workshop taught by labor specialists, and a veterans' benefits
phase taught by VA employees.
The employment workshop focuses on career training
essentials such as resume and cover letter writing,
interviewing, and job search skills. Participants also receive
a briefing from VA on the various types of veterans' benefits
available to them.
Currently, Disabled Veteran Outreach Program Specialists
(DVOPS) and Local Veteran Employment Representatives (LVER)
teach most TAP courses in the United States. DVOPS and LVERs
are State employees funded by DoL's Veterans Employment and
Training Service (VETS). The primary job of DVOPS and LVERs is
to work at State workforce employment centers to help veterans,
especially disabled veterans, find meaningful employment, not
to teach TAP classes.
However, contract instructors teach TAP at overseas bases
as well as at several locations inside the United States. Over
the past several Congresses, Committee staff has conducted site
visits to observe TAP classes in action. In general, staff has
found the quality of instruction in classes taught by contract
instructors to be superior to those taught by DVOPS and LVERs.
This is not to denigrate the efforts of the DVOPS and LVERs
because they are hired for different skill sets needed to be
effective job placement and outreach experts, not classroom
instructors.
Section 201 would require VETS to contract for all TAP
instruction. This change would not only ensure quality
instruction for all servicemembers but it would allow DVOPS and
LVERs to focus on their primary mission, which is to provide
intensive services to disabled veterans and outreach to
employers. The Committee expresses its appreciation for DVOPS
and LVERs who have helped departing servicemembers transition
to civilian life. However, the Committee also believes that
veterans will benefit more by using contract instructors for
TAP and freeing DVOPS and LVERs to devote their time to helping
veterans get good-paying jobs.
Finally, the Committee believes that using contract
instructors for all TAP employment workshop classes offers an
excellent opportunity for VA to join with VETS to contract for
the VA benefits instructional element of TAP. This would
relieve VA from the need to station additional personnel
overseas, as well as allow VA TAP instructors to perform their
normal day-to-day duties.
Section 202--Mandatory participation in Transition Assistance Program
Under current law, all servicemembers are ``encouraged'' to
participate in TAP classes but only the Marines make TAP
mandatory for all of its personnel. As a result, DoD data
indicate that 15 to 20 percent of departing servicemembers do
not attend TAP classes.
Therefore, section 202 would require that all
servicemembers below the rank of O-6 and E-8 (generally, those
below the rank of Colonel for officers and Master or First
Sergeant for enlisted persons) participate in TAP with a few
exceptions for senior officers and enlisted personnel, as well
as those unable to attend due to operational necessity.
While the TAP program is considered dated and in serious
need of improvement, the Committee believes that having a
servicemember attend a less-than-perfect TAP class is better
than nothing at all. The Committee is also aware that DoL, VETS
and DoD are in the process of modernizing TAP so that it will
feature a strong emphasis on training targeted to individual
needs and circumstances. The Committee encourages the
Departments to complete the project as soon as possible. The
Committee also expects the revamped TAP to include, at least, a
period during TAP that will assist those who intend to enroll
in school to assess their readiness for higher education and to
choose an institution appropriate for their academic and
vocational goals.
Section 203--Report on the Transition Assistance Program
Congress has little statistical data on TAP participation
and it has been over 17 years since the TAP program was last
updated. Therefore, section 203 would establish a reporting
requirement on the level of participation in TAP as well as a
third party review on a regular basis to determine whether the
content of TAP is meeting the needs of departing
servicemembers. The section would require that to the extent
feasible, the third party contracted to conduct the review of
TAP should be a company that has been validated as owned and
controlled by a service disabled veteran and listed in the
database required by section 8127 of title 38, United States
Code.
Section 204--Transition Assistance Program outcomes
TAP has been in operation for nearly two decades. While
many DVOPS and LVERs do have participants fill out evaluations
on their impressions of the program, participants are not
tracked to see how they used the skills presented in TAP to
successfully transition to civilian life. However, that data is
not compiled at a national level. Section 204 would direct DoL
and DoD to develop a method to assess the outcomes obtained by
participants after TAP class completion.
The Committee has learned that despite the fact that the
Marines have made TAP mandatory, thousands of Marines
nevertheless do not attend this important class. Additionally,
with the revised TAP coming online, DoL will need to assess the
effectiveness of its redesign efforts. To do that, the TAP
program will need to collect data from those who have recently
participated in TAP.
Based on briefings from VETS and DoD staff, the Committee
is aware of the intent to include such follow-up in the
redesigned TAP. The Committee accepts the Departments'
statements of intent in this matter and believes that inclusion
of the followup data collection will meet the requirements of
this section. However, if the redesigned TAP does not collect
the data required by this section, the Departments must collect
the data by another means.
Section 205--Comptroller general review
As a means to gain a more immediate analysis of the quality
and modernization needs of the TAP program, section 205 would
require the Comptroller General of the United States to conduct
a thorough review of TAP.
TITLE III--IMPROVING THE TRANSITION OF VETERANS TO CIVILIAN EMPLOYMENT
Section 301--Reauthorization and improvement of demonstration project
on credentialing and licensure of veterans
Public Law (P.L.) 109-461, 120 Stat. 3403, was signed into
law on December 22, 2006. Section 604 included provisions
authorizing VETS to conduct a pilot program, from 2006 through
2009, to analyze several military occupations to determine the
barriers to employment in similar civilian occupations. The law
also authorized DoL to use unobligated funds to contract with
an appropriate entity to carry out the project. To date, DoL
has failed to carry out the study.
DoD has the largest training program in the world, training
servicemembers in hundreds of occupations. While many of these
occupations center on combat-related duties, the vast majority
train servicemembers in support roles, many of which are
closely related to skills required in civilian occupations.
Despite that close relationship, servicemembers find it
difficult to transition directly into equivalent civilian
occupations. There are many reasons for this, but chief among
those reasons is the plethora of differing State laws and
regulations that directly impede that transition.
The Committee believes that it is vital to engage the
States in an effort to standardize laws and regulations, even
on a limited basis, in an effort to smooth servicemembers'
transition to civilian employment and retain the value of
taxpayer investment in the military training program. The
Committee also recognizes that an unregulated transition for
some specialties may not be achievable, but expects DOL to
select military specialties ranging from those that are easier
to transition from, to those that are more difficult.
Therefore, section 301 would reauthorize the demonstration
project on licensing and credentialing and require DoL to enter
into a contract with an association of State governors to
assist in developing a unified set of standards for not less
than five, but no more than ten, occupations that will easily
translate from the military.
Section 302--Inclusion of performance measures in annual report on
veteran job counseling, training, and placement programs of the
Department of Labor
VETS currently funds the salaries and expenses of DVOPS and
LVERs at a cost of over $165 million per year. Unfortunately,
there is little statistical accountability built into the
system to determine if this funding objectively leads to
effective results.
Section 302 would require VETS to create new performance
metrics on the participants served by DVOPS and LVERs,
including data on length of employment, median income, and
degrees earned by participants following the completion of the
program.
Section 303--Clarification of priority of service for veterans in
Department of Labor training programs
Section 2 of the Jobs for Veterans Act, P.L. 107-288, 116
Stat. 2033, required DoL to give veterans and certain spouses
of veterans priority of service in all DoL training programs
for which the veteran or spouse would otherwise qualify.
Based on DoL statistics, it appears that DoL interprets the
priority of service requirement to be met if veterans and other
covered persons are shown to be participating in a DoL training
program at a percentage roughly equal to the percentage of
veterans in the general population (around 9-10 percent). The
Committee believes such a proportion-based approach fails to
meet both the letter and spirit of the law. Therefore, section
303 would clarify the law to ensure that veterans are indeed
receiving the priority of service envisioned in P.L. 107-288.
The section also requires a new section to the VETS annual
report that will track this priority of service at the local
level. The section also makes it clear that DoL may not use the
proportion of representation of veterans in training programs
vs. the general veteran population as a basis for determining
priority of service.
Section 304--Evaluation of individuals receiving training at the
National Veterans Employment and Training Services Institute
The Committee believes it is important to hold DVOPS and
LVERs accountable for the funds taxpayers are providing to
enable them to perform their duties. Chapter 41 of title 38,
United States Code, requires that DVOPS and LVERS complete an
initial training program offered by the National Veterans
Employment and Training Services Institute (NVTI). However,
there is no statutory requirement that DVOPS and LVERs
satisfactorily complete the course of training or that the
employing State agency be informed of an employee's performance
at NVTI. Therefore, section 304 would require that at the
completion of their training at NVTI, each trainee would be
required to take a final examination based on the training at
NVTI. The results of this examination would then be sent to the
organization or group that sponsored the trainee's attendance
at NVTI.
The Committee expects DoL and NVTI to implement such
reporting beginning with the first class completing training
following enactment of this provision.
Section 305--Requirements for full-time Disabled Veterans Outreach
Program Specialists (DVOPS) and Local Veterans Employment
Representatives (LVERs)
The Committee continues to be made aware of full-time DVOPS
and LVERs being required to perform non veteran-related
functions at their worksites. Although the Committee
understands the significant workload on the workforce
development system with nearly 14 million Americans dealing
with unemployment, the Committee is convinced there is
sufficient work for DVOPS and LVERs to do in finding good jobs
for the nearly 1 million unemployed veterans. The Committee
also believes that State Directors and Assistant Directors of
Veterans Employment and Training need to conduct aggressive
audits of workforce development offices and make it clear to
managers that DVOPS and LVERs shall not perform non veteran-
related work.
Therefore, because there is currently no statutory
prohibition from full-time DVOPS and LVERs performing non-
veteran related work, Section 305 would prohibit full-time
DVOPS and LVERs from performing non-veteran related work, and
require VETS to conduct audits to ensure compliance.
Section 306--Report on findings of the Department of Defense and
Department of Labor Credentialing Work Group
In FY 2006, DoD and DoL began a study of 10 military
occupations to determine the civilian barriers to employment in
those occupations. Unfortunately, the study was terminated in
2008 despite the investment made to date. Therefore, section
306 would require DoD and DoL to complete the study and provide
to Congress a report on the results of the study and ways that
DoD and DoL will use existing programs to promote licensing and
credentialing of servicemembers in the civilian world.
TITLE IV--IMPROVEMENTS TO UNIFORMED SERVICES EMPLOYMENT AND
REEMPLOYMENT RIGHTS
Section 401--Clarification of benefits of employment covered under
USERRA
The Uniformed Services Employment and Reemployment Rights
Act (USERRA) sets the parameters under which an employer must
employ and reemploy members of the uniformed services who are
returning from active duty or who must be absent from work due
to military obligation.
DoL has suggested adding language to clarify the definition
of, or has suggested clarifying the definition of ``benefit,''
``benefit of employment,'' or ``rights and benefits,''. On page
18 of the Department's Fiscal Year 2010 Annual Report on the
Uniformed Services Employment and Reemployment Rights Act
(USERRA), DoL noted that:
In the Department's view these terms [section
4303(2)] to include the right not to suffer workplace
harassment or the creation of a hostile working
environment because of an individual's membership in
the uniformed service or uniformed service
obligations[.] DoL considers it a violation of USERRA
for an employer to cause or permit workplace
harassment, the creation of a hostile working
environment, or to fail to take prompt and effective
action to correct harassing conduct because of an
individual's membership in the uniformed service or
uniformed service obligations. Although the Department
believes that the statute currently supports this
reading, in light of the risk of contrary
interpretations by the courts, the Department
recommends that Congress consider clarifying that
USERRA prohibits workplace harassment or the creation
of a hostile working environment. The Department of
Justice and the Office of Special Counsel concur with
this recommendation.
In determining the existence of a ``hostile workplace,''
the Supreme Court in Meritor Savings Bank vs. Vinson, 477 U.S.
57, 63-66 (1986) considered whether the ``term, conditions, or
privileges of employment'' were violated. Therefore, section
401 will expand the definition of a hostile work environment to
include, ``the terms, conditions, or privileges of
employment,'' to conform USERRA with the Supreme Court's
decision and DoL's request in its annual report on USERRA.
TITLE V--OTHER MATTERS
Section 501--Extension of certain expiring provisions of law
In FY 2010, the VA Loan Guaranty Service guaranteed 314,011
loans and managed a total loan volume of over $65 billion.
Among the loans VA may guarantee are adjustable rate mortgages
(ARM) loans and hybrid ARMs (which loans allow for a fixed
interest rate for a defined period prior to any adjustment).
However the authority for VA to guarantee these kinds of loans
expires on September 30, 2012. Section 501 reauthorizes VA's
ability to guarantee ARM and hybrid ARM loans through September
30, 2014.
Further, to minimize taxpayer risk in association with
mortgages and properties acquired by VA, VA has the authority
to pool VA-guaranteed mortgages and sell them on the secondary
market. This authority expires on December 31, 2011, and
section 501 would also reauthorize this authority through
December 31, 2016. The Committee believes that this authority
protects taxpayer's investment into these houses and helps
remove these properties from VA's books.
In addition, section 3729 of title 38, United States Code,
requires certain uses of VA's loan guaranty benefit to pay an
upfront fee. The funding fee varies based on an individual's
status and the amount of down payment brought forward, and the
date of loan origination. The rates of funding fees (expressed
as a percentage of the loan) that have been in effect since
2009 are set to be reduced on October 1, 2011. These fees
reduce the subsidy cost associated with VA's guaranty of
mortgage loans, and have typically been viewed as a reasonable
cost to the benefit gained by having VA guarantee a mortgage
loan. Section 501 would also extend through October 1, 2017,
the rates of funding fees that would otherwise be reduced on
October 1, 2011.
Finally, the Veterans' Benefits Improvement Act of 2008,
P.L. 110-389, 122 Stat. 4145, authorized VA to temporarily
guarantee mortgages with higher loan values in recognition of
the high cost of housing in several areas of the country. This
authorization expires on December 31, 2011. Section 501 would
extend through December 31, 2014, VA's ability to guarantee
loans with a maximum value of $417,000 for most areas of the
country and a maximum of $1.1 million in high cost areas of the
country.
Section 502--Department of Veterans Affairs housing loan guarantees for
surviving spouses of certain totally disabled veterans
Currently, surviving spouses of veterans whose deaths were
not service-connected, but who had service-connected
disabilities that were permanent and total for at least 10
years immediately preceding their deaths, are eligible to
receive a monthly dependency and indemnity compensation (DIC)
payment from VA. However, surviving spouses of such veterans
are not eligible for the VA home loan guaranty benefit
administered by VA. Section 502 would enable these surviving
spouses to take advantage of the VA loan guaranty benefit.
Section 503--Extension of Homeless Veterans Reintegration Programs
The Homeless Veterans Reintegration Program (HVRP) is a
grant program managed by VETS. Grants are made generally to
non-profit, community-based organizations to fund efforts to
qualify and place homeless veterans in jobs. The Comptroller
General has consistently found the HVRP to be among the best
federal programs to assist the homeless. Today, VETS funds well
over 100 grantees and served 13,735 and placed 7,824 homeless
veterans during the latest reporting period.
The authority for the HVRP program is set to expire on
September 30, 2011. The Committee believes the program's
success justifies its continuation as a part of the overall
effort to reduce homelessness among veterans of all ages.
Therefore, section 503 would expand the authorization for this
program to September 30, 2012 and requires the Comptroller
General to complete a report on the effectiveness of HVRP no
later than one year after enactment.
Section 504--Reimbursement rate for ambulance services
Under current law, VA reimburses ambulance companies for
services rendered to veterans enrolled in the VA health care
system. The Administration reported to Congress that VA's
reimbursement is well above the rate used to determine
reimbursement under Medicare. The Administration requested that
Congress end this practice and authorize reimbursement at the
lesser of the actual rates charged on the rates authorized
under Medicare.
Section 504 would permit VA to pay the lesser of the actual
amount charged by the ambulance provider or the applicable
amount in the Medicare fee schedule for ambulance services. It
is the Committee's expectation that ambulance providers will
accept payment at the Medicare rate and not bill veterans
directly. The Committee directs VA to report on the
implementation of this provision.
Section 505--Annual reports on Post-9/11 Educational Assistance Program
and Survivors' and Dependents' Educational Assistance Program.
Title 38, United States Code, currently requires DoD and VA
to report on the effectiveness of the MGIB in meeting the
statutory objectives of the program. With the advent of the
Post-9/11 GI Bill, and the resulting reduction in the
participation in the MGIB, the Committee believes it is time to
refocus the report on the Post-9/11 GI Bill.
With the significant investment, estimated to be as much as
$60 to $80 billion over the first 10 years, and the need for
Congress to be able to determine whether provisions of the new
GI Bill are meeting their intended outcomes, section 505 would
require an annual assessment of the outcomes of GI Bill
participants.
The report would require DoD to measure what effect the
level of GI Bill benefits has on DoD's ability to recruit and
maintain qualified active-duty personnel. This section would
require VA to report on the level of utilization of benefits
under all education programs administered by VA, the number of
credit hours, certificates, degrees, and other qualifications
earned by students under the GI Bill, and VA's recommendations
on ways to improve the benefit for servicemembers, veterans,
and their dependents.
Section 506--Limitation on amount authorized to be appropriated for
employee travel, printing, and fleet vehicles
The President's National Commission on Fiscal
Responsibility issued its report in December 2010 and
recommended that every Federal agency: be prohibited from
spending in excess of 80 percent of its FY 2010 travel budget;
cap total government printing expenditures; and reduce
government-wide (excluding DoD) vehicle fleet expenditures by
20 percent. In support of its recommendation, the President's
Commission made the following observation:
Despite advances in technology, Federal travel costs
have ballooned in recent years, growing 56 percent
between 2001 and 2006 alone. Government fleets,
meanwhile, have grown by 20,000 over the last 4 years.
Printing costs are still higher than necessary despite
technological advancement.
In response to pre-hearing questions for the record
submitted by Committee Chairman Jeff Miller, VA testified that
its combined expenditures for employee travel, printing costs,
and costs associated with its vehicle fleet, was $289 million
in fiscal year 2009, $341 million in fiscal year 2010, and was
budgeted at $385 million in fiscal year 2011. Although the
President's Commission recommended reductions relative to FY
2010 spending, the Committee believes it is appropriate, in
light of VA efforts to increase its outreach to veterans in
rural communities and its effort to train newly hired
employees, to cap spending at an amount that not only
encourages greater use of technology (as the Commission
recommended) but also remains sensitive to VA's mission to
serve veterans.
Accordingly, section 506 would establish an authorization
cap of $385 million in FY 2012 for employee travel, printing
costs, and fleet vehicles. The authorization cap would be equal
to planned FY 2011 spending and, according to VA, $9 million
below VA's planned expenditures for FY 2012. The Committee
notes that the authorization cap under section 506 would be 33
percent above the fiscal year 2009 amount and 13 percent above
the fiscal year 2010 amount. The Committee encourages VA,
consistent with the Commission's recommendations, to strive for
greater savings in these areas through the expanded use of
technology.
Section 507--Extension of reduced pension for certain veterans covered
by Medicaid plans for services furnished by nursing facilities.
Current law limits pensions for veterans who have no
dependents, and who are residing in nursing homes paid for
under a Medicaid plan, to $90 per month. The provision will
expire on May 31, 2015. Section 507 would extend this provision
through May 31, 2016.
Hearings
On July 7, 2011, the Subcommittee on Economic Opportunity
conducted a legislative hearing on various bills introduced
during the 112th Congress, including:
H.R. 1911, H.R. 240, H.R. 1263, H.R. 120, H.R. 2274, H.R.
2301, H.R. 2302, H.R. 2345, and H.R. 2329. The following
witnesses testified: Mr. Tom Tarantino, Senior Legislative
Associate of Iraq and Afghanistan Veterans of America; Mr.
Shane Barker, Senior Legislative Associate, National
Legislative Service of the Veterans of Foreign Wars of the
United States; Mr. Jeff Steele, Assistant Director, National
Legislative Commission of The American Legion; MG David Bockel,
USA (Ret.), Executive Director of the Reserve Officers
Association of the United States (testimony also submitted on
behalf of Reserve Enlisted Association of the United States);
Mr. Arthur F. Kirk, Jr., President, Saint Leo University, Saint
Leo, FL, on behalf of National Association of Independent
Colleges and Universities; Ms. Susan C. Aldridge, Ph.D.,
President, University of Maryland University College, Adelphia,
MD, on behalf of the American Association of State Colleges and
Universities; and Mr. Curtis L. Coy, Deputy Under Secretary for
Economic Opportunity, Veterans Benefits Administration of the
U.S. Department of Veterans Affairs, who was accompanied by Mr.
John Brizzi, Deputy Assistant General Counsel, Office of
General Counsel of the U.S. Department of Veterans Affairs. Ms.
Vivianne Cisneros Wersel, Au.D., Chair, Government Relations
Committee of Gold Star Wives of America, Inc., and Paralyzed
Veterans of America submitted a statement for the record.
On July 15, 2011, the Committee conducted a legislative
hearing on various bills introduced during the 112th Congress,
including: H.R. 2433, H.R. 1941, and H.R. 1169. The following
witnesses testified: The Honorable Sanford D. Bishop Jr.,
Georgia, U.S. House of Representatives; The Honorable Jack
Quinn, President, Erie Community College, Williamsville, NY.
The following individuals and organization submitted statements
for the record: Mr. Ryan M. Gallucci, Deputy Director, National
Legislative Service of the Veterans of Foreign Wars of the
United States; Mr. Tom Tarantino, Senior Legislative Associate,
Iraq and Afghanistan Veterans of America; Mr. Robert Madden,
Assistant Director, National Economic Commission of The
American Legion, Mr. Bob Simoneau, Deputy Executive Director,
National Association of State Workforce Agencies; Mr. Curtis L.
Coy, Deputy Under Secretary for Economic Opportunity of the
Veterans Benefits Administration of the U.S. Department of
Veterans Affairs who was accompanied by Mr. John Brizzi, Deputy
Assistant General Counsel, Office of General Counsel, U.S.
Department of Veterans Affairs; and the Honorable Raymond M.
Jefferson, Assistant Secretary of the Veterans' Employment and
Training Service of the U.S. Department of Labor. United States
Department of Defense; Paralyzed Veterans of America; and Mr.
John F. Morgan, President/Chief Executive Officer of Veterans
of Modern Warfare.
Committee Considerations
On September 8, 2011, the full Committee met in an open
markup session, a quorum being present, and ordered reported
favorably H.R. 2433, as amended, to the House of
Representatives, 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.
Ranking Member Filner requested a record vote on H.R. 2433, as
amended. The results of the record vote are as follows with the
motion carrying by 17 yeas and 5 nays. Following the record
vote on passage of H.R. 2433 as amended, the Committee approved
a motion by Mr. Bilirakis to report favorably the bill, as
amended, to the House, by voice vote.
----------------------------------------------------------------------------------------------------------------
Member Yea/Nay Member Yea/Nay
----------------------------------------------------------------------------------------------------------------
Mr. Miller (FL).............................. Yea Mr. Filner..................... Nay
Mr. Bilirakis................................ Yea Ms. Brown...................... Not Present
Mr. Stearns.................................. Yea Mr. Reyes...................... Not Present
Mr. Lamborn.................................. Yea Mr. Michaud.................... Yea
Mr. Roe...................................... Yea Ms. L. Sanchez................. Yea
Mr. Stutzman................................. Yea Mr. Braley..................... Nay
Mr. Flores................................... Yea Mr. McNerney................... Nay
Mr. Johnson (OH)............................. Yea Mr. Donnelly................... Yea
Mr. Denham................................... Yea Mr. Walz....................... Yea
Mr. Runyan................................... Yea Mr. Barrow..................... Nay
Mr. Benishek................................. Yea Mr. Carnahan................... Nay
Ms. Buerkle.................................. Yea
Mr. Huelskamp................................ Yea
----------------------------------------------------------------------------------------------------------------
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. 2433, as amended, 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.
2433, as amended, 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. 2433, as amended, 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, September 19, 2011.
Hon. Jeff Miller,
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. 2433, the Veterans
Opportunity to Work Act of 2011.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contact is William Ma.
Sincerely,
Douglas W. Elmendorf.
Enclosure.
H.R. 2433--Veterans Opportunity to Work Act of 2011
Summary: H.R. 2433 would create or modify programs that
provide employment and training services to veterans and
servicemembers separating from active duty. The bill also would
make changes to programs that offer home loan guarantees,
ambulance services, and pension payments to qualifying
individuals.
If enacted, CBO estimates that, on net, the bill would
decrease direct spending by $8 million over the 2012-2016
period and by $291 million over the 2012-2021 period. Because
the bill would affect direct spending, pay-as-you-go procedures
apply. Enacting H.R. 2433 would not affect revenues.
In addition, CBO estimates that implementing H.R. 2433
would have a discretionary cost of $8 million over the 2012-
2016 period, assuming appropriation of the specified and
estimated amounts.
H.R. 2433 contains no intergovernmental or private-sector
mandates as defined in the Unfunded Mandates Reform Act (UMRA).
Estimated cost to the Federal Government: The estimated
budgetary impact of H.R. 2433 is shown in the following table.
The costs of this legislation fall within budget functions 700
(veterans benefits and services) and 050 (national defense).
TABLE 1.--ESTIMATED BUDGETARY EFFECTS OF H.R. 2433, THE VETERANS OPPORTUNITY TO WORK ACT OF 2011
----------------------------------------------------------------------------------------------------------------
By fiscal year, in millions of dollars--
-------------------------------------------------------
2012 2013 2014 2015 2016 2012-2016
----------------------------------------------------------------------------------------------------------------
CHANGES IN DIRECT SPENDINGa
Estimated Budget Authority.............................. -20 1,066 -266 -360 -428 -8
Estimated Outlays....................................... -20 1,066 -266 -360 -428 -8
CHANGES IN SPENDING SUBJECT TO APPROPRIATION
Estimated Authorization Level........................... 90 48 -41 -47 -51 1
Estimated Outlays....................................... -1 69 33 -45 -50 8
----------------------------------------------------------------------------------------------------------------
Note: Components may not sum to totals because of rounding.
aIn addition to the direct spending effects shown here, enacting H.R. 2433 would have additional effects on
direct spending beyond 2016 (see Table 2). CBO estimates that net direct spending would decrease by $291
million over the 2012-2021 period.
Basis of estimate: This estimate is based on information
from the Department of Veterans Affairs (VA), the Department of
Labor (DOL), the Department of Defense (DoD), and the National
Veterans Training Institute (NVTI). For the purposes of this
estimate, CBO assumes the bill will be enacted near the
beginning of fiscal year 2012, that the necessary amounts will
be appropriated each year, and that outlays will follow
historical patterns for similar and existing programs.
Direct spending
Table 2 summarizes the effects of H.R. 2433 on direct
spending for veterans' housing loan guarantees, training and
employment assistance, and pension payments. CBO estimates that
enacting those provisions would reduce net direct spending for
veterans' programs by $291 million over the 2012-2021 period.
TABLE 2.--ESTIMATED CHANGES IN DIRECT SPENDING UNDER H.R. 2433
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Outlays, in millions of dollars, by fiscal year--
-----------------------------------------------------------------------------------------------------------------------------------
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2012-2016 2012-2021
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Guaranteed Loan Provisions.................................. -242 -262 -281 -292 -300 -307 3 2 2 1 -1,377 -1,676
Veterans Retraining Assistance.............................. 223 1,330 17 0 0 0 0 0 0 0 1,570 1,570
Pensions for Veterans in Medicaid Nursing Homes............. 0 0 0 -65 -125 0 0 0 0 0 -190 -190
Loan Guarantees for Surviving Spouses....................... -1 -2 -2 -3 -3 -4 5 5 5 5 -11 5
-----------------------------------------------------------------------------------------------------------------------------------
Total changes........................................... -20 1,066 -266 -360 -428 -311 8 7 7 6 -8 -291
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Note: * = less than $500,000.
Guaranteed Loan Provisions. Section 501 would modify
several provisions of current law related to VA's authority to
guarantee certain mortgages provided to veterans. In total,
those changes would decrease direct spending by almost $1.7
billion over the 2012-2021 period.
Fee Changes. Most significantly, section 501 would postpone
scheduled decreases in the fees that VA charges for providing
loan guarantees. Under its mortgage guarantee program, VA
promises lenders a payment of up to 25 percent of the
outstanding loan balance (subject to some limitations on the
original loan amount) in the event that the borrower defaults.
Such guarantees enable veterans to get better loan terms, such
as lower interest rates or smaller down payments. VA charges
fees to some borrowers for its guarantee to offset the costs of
subsequent defaults. The amount of the fee varies depending on
the size of the down payment and whether the borrower has
previously used the loan-guarantee benefit.
Under current law, in 2011, veterans who get a mortgage
with a VA guarantee and who make no down payment are required
to pay an up-front fee equal to 2.15 percent of the principal
amount. The fees for veterans who do make down payments range
from 1.25 percent to 1.50 percent of the principal amount,
depending on the size of the down payment. Under current law,
in 2012 and thereafter the fees for such loans are scheduled to
decline by roughly half. Veterans who have previously used the
loan-guarantee benefit currently pay an up-front fee equal to
3.30 percent of a subsequent guaranteed loan taken in 2011. The
rate for that fee will decline to 2.80 percent in 2012, to 2.15
percent in 2013, and to 1.25 percent in 2014 and any subsequent
year. (Veterans of the reserve components pay an additional fee
of 0.25 percent for loan guarantees.)
Section 501 would increase the current-law fee rates for
the 2012-2017 period to the rates in effect for 2011. Reserve
veterans would continue to pay the additional 0.25 percent
premium. In 2018 and thereafter, the fees would decline to the
rates specified for those years in current law. Eliminating the
scheduled fee decline for the 2012-2017 period would increase
collections by VA, lowering the subsidy cost of the loan
guarantees provided in those years; direct spending would
decrease by $229 million in 2012, and by $1,684 million over
the 2012-2021 period, CBO estimates.\1\
---------------------------------------------------------------------------
\1\Under the Federal Credit Reform Act of 1990, the subsidy cost of
a loan guarantee is the net present value of estimated payments by the
government to cover defaults and delinquencies, interest subsidies, or
other expenses, offset by any payments to the government, including
origination fees, other fees, penalties, and recoveries on defaulted
loans. Such subsidy costs are calculated by discounting those expected
cash flows using the rate on Treasury securities of comparable
maturity. The resulting estimated subsidy costs are recorded in the
budget when the loans are disbursed.
---------------------------------------------------------------------------
Adjustable-Rate, Hybrid-Adjustable-Rate, and Jumbo
Mortgages. Section 501 also would extend several expiring
authorities to guarantee certain types of mortgages. VA is
authorized to provide guarantees for adjustable-rate mortgages
and hybrid-adjustable-rate mortgages (that is, mortgages with a
rate that is fixed for an initial period and adjustable
thereafter) until the end of fiscal year 2012. The bill would
extend those authorities through fiscal year 2014.
It also would increase the maximum loan level for which VA
can provide a full guarantee. The guaranteed payment from VA is
generally capped at 25 percent of the initial loan balance, up
to the limit on loan size established by the Federal Home Loan
Mortgage Corporation Act, currently a maximum loan amount of
$417,000. (Loans at or below that level are known as conforming
loans; loans in excess are called jumbo loans. Exceptions are
made to the conforming limit for certain high-cost areas like
Hawaii and Alaska.) The Veterans Benefits Improvements Act of
2008 (Public Law 110-389) temporarily increased by 75 percent--
to $729,750--the maximum loan amount eligible for the full
guarantee. The limit reverts to the lower level after December
31, 2011. Section 501 would extend for three years the
authority to guarantee loans up to that higher limit.
Based on the number of adjustable-rate, hybrid-adjustable-
rate, and jumbo mortgages VA has guaranteed in recent years,
CBO estimates that VA would guarantee about $6 billion worth of
additional loans a year during the period those expiring
authorities would be extended. In conjunction with the fee
increases discussed above, those extensions would reduce direct
spending by $13 million in 2012, and increase it by $8 million
over the 2012-2021 period, CBO estimates.
Veterans Retraining Assistance. Section 101 would provide
up to 12 months of retraining assistance to no more than
100,000 unemployed veterans that enter education or training
programs at community colleges or technical schools to prepare
them for employment in an occupational field that is determined
by DOL to have significant employment opportunities. The
monthly amount of assistance payable to participating veterans
would equal the maximum monthly amount of basic assistance
payable under the Montgomery G.I. Bill. For 2011, that rate is
$1,426 per month. To qualify for the retraining assistance,
veterans must be:
Unemployed;
At least 35, but not more than 60 years of
age;
Discharged from active-duty service under
honorable conditions; and
Ineligible to receive any other educational
assistance from VA.
Of the total number of veterans that qualify for retraining
assistance, only 45,000 may enter the retraining program in
fiscal year 2012 and only 55,000 may enter the program between
October 1, 2012, and March 31, 2014. Based on information from
DOL, CBO estimates that those caps will quickly bereached and
that each participating veteran would, on average, receive
about $15,500 in assistance. Over the 2012-2014 period, CBO
estimates that providing retraining assistance to those
veterans would increase direct spending by about $1.5 billion,
with most of that cost falling in fiscal year 2013.
Of the 100,000 unemployed veterans expected to participate
in the retraining program, we project that nearly half also
would apply for, and be eligible to participate in, the Federal
Pell Grant and Federal Student Loan Programs funded by the U.S.
Department of Education. While the bulk of funding for Pell
grants is discretionary (see discussion below under the
spending subject to appropriation estimate for section 101),
CBO estimates that, if enacted, section 101 would increase
direct spending by $21 million over the 2012-2015 period for
the mandatory portion of the Pell Grant program. The bill also
would have a negligible impact on direct spending for student
loans.
Pensions for Veterans in Medicaid Nursing Homes. Section
507 would extend from May 31, 2015, to May 31, 2016, the
expiration date of a provision of current law that sets a $90
per month limit on pensions paid to any veteran without a
spouse or child, or to any survivor of a veteran, who is
receiving Medicaid coverage in a Medicaid-approved nursing
home. The law also allows the beneficiary to retain the pension
instead of having to use it to defray nursing home costs. Using
data provided by VA, CBO estimates that in 2012 about 15,000
veterans and 19,000 survivors will be affected by this
provision and that the average savings to VA will total about
$18,600 per veteran and $11,600 per survivor. Extrapolating
from this estimate to account for mortality and new nursing
home patients, CBO estimates the provision would save VA $490
million over the 2015-2016 period. Higher Medicaid payments to
nursing homes would offset some of those savings. We estimate
that those costs would total about $300 million over the 2015-
2016 period, resulting in a net savings of $190 million over
the period.
Loan Guarantees for Surviving Spouses. Section 502 would
make the surviving spouses of certain totally disabled veterans
eligible for the mortgage guarantee benefit. Under current law,
surviving spouses of veterans who die from a service-connected
disability may get a loan with a VA guarantee; spouses of
veterans whose disability was not related to their service are
ineligible. The bill would authorize VA to guarantee loans to
surviving spouses of veterans with disabilities that were not
service-connected if the veteran had been continuously and
completely disabled for 10 years preceding death, completely
disabled for five years from the date of discharge, or
completely disabled for one year if they had also been held as
a prisoner of war and died after September 30, 1999. CBO
estimates that VA would guarantee few such loans initially, but
that over time, the number of additional loans it would
guarantee would reach about 2,500 a year. Those additional
loans--taking into account the fee structure specified in
section 501--would yield a net increase in direct spending of
$5 million over the 2012-2021 period, CBO estimates.
Spending subject to appropriation
H.R. 2433 would limit reimbursement to organizations that
provide ambulance services to veterans and modify programs that
provide employment and training services to veterans and
servicemembers separating from active duty. If enacted, CBO
estimates that, on net, the bill would have a discretionary
cost of $8 million over the 2012-2016 period, assuming
appropriation of the specified and estimated amounts (see Table
3).
Reimbursement for Ambulance Services. Section 504 would
allow VA to pay the provider of ambulance services the lesser
of the actual charge or the amount determined by the Medicare
fee schedule for such services. Under current law, VA does not
have a standard fee for ambulance services; rather the
department reimburses the transportation costs for certain
veterans based upon the ``actual necessary expense'' as
submitted by the provider. CBO expects that paying Medicare
rates for ambulance services would lower such costs by roughly
20 percent (comparable to the difference between Medicare Part
B physician payment rates and those of the private sector). On
that basis, CBO estimates that using the Medicare fee schedule
would reduce spending for ambulance services by $246 million
over the 2012-2016 period, assuming future appropriations are
reduced accordingly.
TABLE 3.--ESTIMATED CHANGES IN SPENDING SUBJECT TO APPROPRIATION UNDER H.R. 2433
----------------------------------------------------------------------------------------------------------------
By fiscal year, in millions of dollars--
-------------------------------------------------------
2012 2013 2014 2015 2016 2012-2016
----------------------------------------------------------------------------------------------------------------
Reimbursement for Ambulance Services:
Estimated Authorization Level....................... -45 -48 -51 -53 -56 -253
Estimated Outlays................................... -41 -47 -50 -53 -55 -246
Veterans Retraining Assistance:
Estimated Authorization Level....................... 76 91 5 0 0 172
Estimated Outlays................................... 27 80 64 1 0 172
Homeless Veterans Reintegration Program:
Authorization Level................................. 50 0 0 0 0 50
Estimated Outlays................................... 4 31 14 1 0 50
Transition Assistance Program (TAP) Outcomes:
Estimated Authorization Level....................... 2 2 3 3 3 14
Estimated Outlays................................... 2 2 3 3 3 14
Mandatory Participation in TAP:
Estimated Authorization Level....................... 2 2 2 2 2 10
Estimated Outlays................................... 2 2 2 2 2 10
Reports, Studies, and Audits:
Estimated Authorization Level....................... 5 1 * 1 * 7
Estimated Outlays................................... 5 1 * 1 * 7
Credentialing and Licensure:
Authorization Level................................. * * * 0 0 1
Estimated Outlays................................... * * * * * 1
Total Changes:
Estimated Authorization Level................... 90 48 -41 -47 -51 1
Estimated Outlays............................... -1 69 33 -45 -50 8
----------------------------------------------------------------------------------------------------------------
Notes: * = less than $500,000.
Components may not sum to totals because of rounding.
Veterans Retraining Assistance. In addition to the direct
spending effects estimated for section 101, CB0 estimates that
implementing this provision would cost $172 million over the
2012-2016 period, assuming appropriation of the estimated
amounts.
Personnel and Information Technology. Based on information
from VA, CBO estimates that about 60 full-time permanent
employees and about 70 temporary employees would be required to
review and process all incoming applications for retraining
assistance. An information technology (IT) system also would
need to be created to manage those applications once approved.
Hiring those employees and developing and maintaining the IT
system would cost $22 million and about $2 million,
respectively, over the 2012-2016 period, CB0 estimates.
Pell Grant Program. As discussed in the direct spending
estimate for section 101, CBO projects that nearly half of the
100,000 unemployed veterans expected to participate in the
retraining program would apply for, and be eligible to
participate in, the Pell Grant program. If enacted, section 101
would increase discretionary costs for Pell grants by $148
million over the 2012-2016 period, CB0 estimates.
Homeless Veterans Reintegration Program (HVRP). Section 503
would extend the HVRP through fiscal year 2012, authorizing $50
million for DOL to provide grants to agencies and organizations
that provide job placement, training, and vocational counseling
to homeless veterans. Under current law, the authorization for
this program will expire at the end of fiscal year 2011. CB0
estimates that implementing this section would cost $50 million
over the 2012-2016 period, assuming appropriation of the
authorized amount.
Transition Assistance Program (TAP) Outcomes. Section 204
would require DOL and DoD to develop a joint method to assess
certain outcomes of every TAP participant. Specifically, DOL
and DoD would have to be able to determine the following for
each TAP participant:
The length of the period of unemployment
following separation from active-duty service,
The beginning salary paid for the first job
obtained following separation, and
The number of months of school or training
attended during the first 12 months following
separation.
Based on information from DOL and DoD, and assuming
implementation of section 202 (see discussion below under
``Mandatory Participation in TAP''), CB0 estimates that DOL and
DoD would need to contact about 170,000 veterans each year. CB0
estimates that it would cost $12 million to hire the additional
staff and about $2 million to develop and maintain the IT
system needed to conduct this outreach over the 2012-2016
period, assuming appropriation of the estimated amounts.
Mandatory Participation in TAP. Under current law,
separating servicemembers are not required to participate in
the employment and job training workshops provided by DOL as an
element of TAP. Section 202 would require that all
servicemembers separating from active duty participate in those
workshops unless they fall under one of these categories:
In pay grades E-8 and above or 0-6 and
above,
Prevented from attending due to an urgent
operational requirement, or
Accepted to an education program or already
obtained post-service employment.
Under current law, DOL provides employment and job training
services to an average of 130,000 separating servicemembers
through about 4,100 employment workshops per year. Based on
information from DOL and DoD, CBO estimates that under section
202 an additional 36,000 individuals would be required to
attend those workshops each year and that DOL would have to
hold about 1,100 additional workshops annually to accommodate
the increased attendance. Based on the cost of current
workshops, CBO estimates that implementing section 202 would
cost $10 million over the 2012-2016 period, assuming
appropriation of the estimated amounts.
Reports, Studies, and Audits. H.R. 2433 contains several
provisions that would require the Comptroller General and the
Secretaries of Labor, Defense, and Veterans Affairs to
complete, or contract with appropriate entities to complete,
various reports, studies, audits, and program reviews. Sections
302 and 303 also would expand existing reporting requirements.
If implemented, CB0 estimates that those efforts, collectively,
would cost $7 million over the 2012-2016 period, assuming
appropriation of the necessary amounts.
Credentialing and Licensure. Section 301 would continue a
demonstration project on credentialing and licensure of
veterans through September 30, 2014, and authorize the use of
up to $180,000 each year for that purpose. The authority to run
that project ended September 30, 2009. If implemented, CB0
estimates that continuing that demonstration project would cost
about $1 million over the 2012-2016 period, assuming
appropriation of the necessary amounts.
Testing of National Veterans Training Institute Course
Participants. NVTI was created to provide training to disabled
veterans' outreach program specialists, local veterans'
employment representatives, and other personnel that provide
employment services to veterans. Section 304 would require that
individuals receiving training at NVTI be given a final
examination at the end of each training course and that the
results of those examinations be provided to the entity that
sponsored the training. Under current law, no such testing is
required. Based on information from NVTI, CBO estimates that
administering those exams would cost less than $500,000 over
the 2012-2016 period, assuming the availability of appropriated
funds.
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 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. 2433 AS ORDERED REPORTED BY THE HOUSE COMMITTEE ON VETERANS' AFFAIRS ON SEPTEMBER 8, 2011
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
By fiscal year, in millions of dollars--
----------------------------------------------------------------------------------------------------------------------------------------------
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2011-2016 2011-2021
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
NET INCREASE OR DECREASE (-) IN THE DEFICIT
Statutory Pay-As-You-Go Impact................... 0 -20 1,066 -266 -360 -428 -311 8 7 7 6 -8 -291
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Intergovernmental and private-sector impact: H.R. 2433
contains no intergovernmental or private-sector mandates as
defined in UMRA and would not affect the budgets of state,
local, or tribal governments.
Previous CBO estimates: On July 7, 2011, CBO transmitted a
cost estimate for S. 951, the Hiring Heroes Act of 2011, as
ordered reported by the Senate Committee on Veterans' Affairs
on June 29, 2011. Sections 6 and 13 of that bill are similar to
sections 202 and 301 in H.R. 2433, respectively. The
differences in the estimated costs reflect differences in the
proposals.
On August 30, 2011, CBO transmitted a cost estimate for S.
914, the Veterans Programs Improvements Act of 2011, as ordered
reported by the Senate Committee on Veterans' Affairs on June
29, 2011. Sections 108 and 206 of that bill are similar to
sections 504 and 503 in H.R. 2433, respectively, and their
estimated costs are the same.
Estimate prepared by: Federal Costs: Ann Futrell, Justin
Humphrey, William Ma, David Newman, and Dwayne Wright; 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. 2433, as amended, 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.
2433, as amended.
Statement of Constitutional Authority
Pursuant to Article I, section 8 of the United States
Constitution, the reported bill is authorized by Congress'
power to ``provide for the common Defense and general Welfare
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. 2433 as the
``Veterans Opportunity to Work Act of 2011.''
TITLE I
Section 101--Veterans Retraining Assistance Program
(a) Authorizes payments to up to 100,000 veterans eligible
under this section.
(b) Defines the types of education and training eligible
for payment under this section.
(c) Requires participants to certify continuing
participation on a monthly basis as done under the Montgomery
GI Bill program.
(d) Defines the benefit payment as the amount paid under
the Montgomery GI Bill in effect at the time of participation.
(e) Defines the eligibility requirements for those veterans
desiring to participate in the program.
(f) Requires VA to report educational achievement data for
Post-9/11 GI Bill participants.
(g) Directs the DoL and VA to jointly develop an agreement
to carry out section 101.
(h) Directs that funds to pay benefits shall come from the
Readjustment Benefits Account.
(i) Terminates all payments on March 31, 2014.
TITLE II
Section 201--Transition Assistance Program Contracting
(a) Amends Section 4113 of title 38, United States Code, to
direct the DoL to contract for all Transition Assistance
Employment Workshop instruction and describes the minimum
functions to be performed under the contract.
(b) Requires DoL to contract for TAP instruction not later
than 24 months after enactment.
Section 202--Mandatory Participation in Transition Assistance Program
Amends Section 1144(c) of title 38, United States Code, to
require, with limited exceptions, all servicemembers to
participate in the TAP.
Section 203--Report on the Transition Assistance Program
Amends Section 1144 of title 10, United States Code, to
require DoL to submit annually a report on TAP participation
and to contract with a validated small business owned and
controlled by a service disabled veteran(s) that is listed in
the database of such companies that is maintained by the VA.
Also authorizes funding to pay for the contract to come from
the Jobs for Veterans State Grant program.
Section 204--Transition Assistance Program Outcomes
Amends Section 1144 of title 10, United States Code, to
require the DoL and DoD to collect employment data on TAP
participants during the first year following discharge.
Section 205--Comptroller general review
Requires the Comptroller General to provide a review of the
TAP and to submit recommendations on the program to the
Congress not later than one year after the date of enactment.
TITLE III
Section 301--Reauthorization and improvement of Demonstration Project
on credentialing and licensure of veterans
Amends section 4114 of title 38, United States Code, to
direct the DoL to conduct a study in cooperation with an
association of governors on 5 to 10 military occupations to
determine barriers to transitioning those skills to civilian
employment and authorizes $180,000 per year to fund the program
through September 30, 2014, and sets reporting requirements.
Section 302--Inclusion of performance measures in annual report on
veteran job counseling, training, and placement programs of the
Department of Labor
Amends Section 4107(c) of title 38, United States Code, to
specify certain employment-education/training-related data for
veterans placed in jobs by DVOPS and LVERs.
Section 303--Clarification of priority of service for veterans in
Department of Labor job training programs
Amends Section 4215 of title 38, United States Code, to
clarify that the term ``priority of service'' in DoL training
programs does not mean proportional participation and requires
the DoL to submit an analysis of how priority of service is
implemented at the local level and prohibits the use of
proportional representation as the basis of determining whether
qualified veterans are receiving priority of service.
Section 304--Evaluation of individuals receiving training at the
National Veterans Employment and Training Services Institute
Amends section 4109 of title 38, United States Code, to
require the National Veterans Employment and Training Services
Institute to test participants in its training program and to
provide the results of that testing to the student's employer.
Section 305--Requirements for full-time Disabled Veterans Outreach
Program Specialists and Local Veterans Employment
Representatives
Amends section 4103A of title 38, United States Code, to
prohibit full-time DVOP and LVER representatives from being
required to perform functions that are not part of their
statutory veterans' employment-related duties. Also requires
the DoL to conduct reviews to determine compliance with the
section and to reduce the State grant funding as the DoL
considers appropriate in cases of non-compliance.
Section 306--Report on the findings of the Department of Defense and
Department of Labor Credentialing Work Group
Requires the DoL and DoD to complete a licensing and
credentialing study of military occupations that was terminated
in 2008 and to report the findings of the study not later than
March 31, 2012.
TITLE IV
Section 401--Clarification of benefits of employment covered under
USERRA
Amends Section 4303(2) of title 38, United States Code, to
clarify the circumstances that define what can be considered a
hostile work environment.
TITLE V
Section 501--Extension of certain expiring provisions of law
Extends the authorization dates for Adjustable Rate
Mortgages (ARMs), Hybrid ARMs, the sale of mortgage-backed
securities, temporary higher maximum VA loan guaranty amount,
and certain loan guaranty funding fees.
Section 502--Department of Veterans Affairs housing loan guarantees for
surviving spouses of certain totally disabled veterans
Amends Section 3701(b) of title 38, United States Code, by
authorizing VA to guarantee home loans for the surviving
spouses of certain veterans who are eligible for DIC but not
for VA's loan guaranty benefit.
Section 503--Extension of Homeless Veterans Reintegration Program
Amends section 2021(e)(1)(F) of title 38, United States
Code, to extend the HVRP through FY 2012.
Section 504--Reimbursement rate for ambulance services
Amends section 111(b)(3) of title 38, United States Code,
to limit VA payments for ambulance services to the lesser of
the actual charges or the rates authorized under Medicare.
Section 505--Annual reports on Post-9/11 Educational Assistance Program
and Survivor's and Dependents' Education Assistance Program
Amends subchapter 33 of title 38, United States Code, to
require DoD and VA to report on the effectiveness of the
education and training offered under the Post-9/11 GI Bill to
servicemembers and dependents in meeting recruiting and
retention goals. It would also require VA to report the levels
of educational achievement earned by participants. Section 505
also terminates similar Montgomery GI Bill reporting
requirements under section 3036 of title 38, United States
Code.
Section 506--Limitation on amount authorized to be appropriated for
employee travel, printing, and fleet vehicles
Reduces the amount of funding for travel, printing, and
fleet vehicles to $385 million for FY 2012.
Section 507--Extension of reduced pension for certain veterans covered
by Medicaid plans for services furnished by nursing facilities
Extends the current $90 limit on pension paid to certain
veterans residing in nursing homes being paid for by Medicaid.
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):
TITLE 38, UNITED STATES CODE
* * * * * * *
PART I--GENERAL PROVISIONS
* * * * * * *
CHAPTER 1--GENERAL
* * * * * * *
Sec. 111. Payments or allowances for beneficiary travel
(a) * * *
(b)(1)* * *
* * * * * * *
(3)(A) * * *
* * * * * * *
(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.
* * * * * * *
PART II--GENERAL BENEFITS
* * * * * * *
CHAPTER 20--BENEFITS FOR HOMELESS VETERANS
* * * * * * *
SUBCHAPTER III--TRAINING AND OUTREACH
Sec. 2021. Homeless veterans reintegration programs
(a) * * *
* * * * * * *
(e) Authorization of Appropriations.--(1) There are
authorized to be appropriated to carry out this section amounts
as follows:
(A) * * *
* * * * * * *
(F) $50,000,000 for each of fiscal years 2007 through
[2011] 2012.
* * * * * * *
PART III--READJUSTMENT AND RELATED BENEFITS
* * * * * * *
CHAPTER 30--ALL-VOLUNTEER FORCE EDUCATIONAL ASSISTANCE PROGRAM
SUBCHAPTER I--PURPOSES; DEFINITIONS
Sec.
3001. Purposes.
* * * * * * *
SUBCHAPTER IV--TIME LIMITATION FOR USE OF ELIGIBILITY AND ENTITLEMENT;
GENERAL AND ADMINISTRATIVE PROVISIONS
* * * * * * *
[3036. Reporting requirement.]
* * * * * * *
SUBCHAPTER IV--TIME LIMITATION FOR USE OF ELIGIBILITY AND ENTITLEMENT;
GENERAL AND ADMINISTRATIVE PROVISIONS
* * * * * * *
[Sec. 3036. Reporting requirement
[(a) The Secretary of Defense and the Secretary shall submit
to the Congress at least once every two years separate reports
on the operation of the program provided for in this chapter.
[(b) The Secretary of Defense shall include in each report
submitted under this section--
[(1) information indicating (A) the extent to which
the benefit levels provided under this chapter are
adequate to achieve the purposes of inducing
individuals to enter and remain in the Armed Forces and
of providing an adequate level of financial assistance
to help meet the cost of pursuing a program of
education, (B) whether it is necessary for the purposes
of maintaining adequate levels of well-qualified
active-duty personnel in the Armed Forces to continue
to offer the opportunity for educational assistance
under this chapter to individuals who have not yet
entered active-duty service, and (C) describing the
efforts under sections 3011(i) and 3012(g) of this
title to inform members of the Armed Forces of the
minimum service requirements for entitlement to
educational assistance benefits under this chapter and
the results from such efforts; and
[(2) such recommendations for administrative and
legislative changes regarding the provision of
educational assistance to members of the Armed Forces
and veterans, and their dependents, as the Secretary of
Defense considers appropriate.
[(c) The Secretary shall include in each report submitted
under this section--
[(1) information concerning the level of utilization
of educational assistance and of expenditures under
this chapter; and
[(2) such recommendations for administrative and
legislative changes regarding the provision of
educational assistance to members of the Armed Forces
and veterans, and their dependents, as the Secretary
considers appropriate.
[(d) No report shall be required under this section after
January 1, 2011.]
* * * * * * *
CHAPTER 33--POST-9/11 EDUCATIONAL ASSISTANCE
SUBCHAPTER I--DEFINITIONS
Sec.
3301. Definitions.
* * * * * * *
SUBCHAPTER III--ADMINISTRATIVE PROVISIONS
* * * * * * *
3325. Reporting requirement.
* * * * * * *
SUBCHAPTER III--ADMINISTRATIVE PROVISIONS
* * * * * * *
Sec. 3325. Reporting requirement
(a) In General.--For each academic year--
(1) the Secretary of Defense shall submit to Congress
a report on the operation of the program provided for
in this chapter; and
(2) the Secretary shall submit to Congress a report
on the operation of the program provided for in this
chapter and the program provided for under chapter 35
of this title.
(b) Contents of Secretary of Defense Reports.--The Secretary
of Defense shall include in each report submitted under this
section--
(1) information indicating--
(A) the extent to which the benefit levels
provided under this chapter are adequate to
achieve the purposes of inducing individuals to
enter and remain in the Armed Forces and of
providing an adequate level of financial
assistance to help meet the cost of pursuing a
program of education;
(B) whether it is necessary for the purposes
of maintaining adequate levels of well-
qualified active-duty personnel in the Armed
Forces to continue to offer the opportunity for
educational assistance under this chapter to
individuals who have not yet entered active-
duty service; and
(C) describing the efforts under section
3323(b) of this title to inform members of the
Armed Forces of the active duty service
requirements for entitlement to educational
assistance benefits under this chapter and the
results from such efforts; and
(2) such recommendations for administrative and
legislative changes regarding the provision of
educational assistance to members of the Armed Forces
and veterans, and their dependents, as the Secretary of
Defense considers appropriate.
(c) Contents of Secretary of Veterans Affairs Reports.--The
Secretary shall include in each report submitted under this
section--
(1) information concerning the level of utilization
of educational assistance and of expenditures under
this chapter and under chapter 35 of this title;
(2) the number of credit hours, certificates,
degrees, and other qualifications earned by
beneficiaries under this chapter and under chapter 35
of this title during the academic year covered by the
report; and
(3) such recommendations for administrative and
legislative changes regarding the provision of
educational assistance to members of the Armed Forces
and veterans, and their dependents, as the Secretary
considers appropriate.
(d) Termination.--No report shall be required under this
section after January 1, 2021.
* * * * * * *
CHAPTER 37--HOUSING AND SMALL BUSINESS LOANS
* * * * * * *
SUBCHAPTER I--GENERAL
Sec. 3701. Definitions
(a) * * *
(b) For the purposes of housing loans under this chapter--
(1) * * *
* * * * * * *
(6) The term ``veteran'' also includes, for purposes
of home loans, the surviving spouse of a deceased
veteran who dies and who was in receipt of or entitled
to receive (or but for the receipt of retired or
retirement pay was entitled to receive) compensation at
the time of death for a service-connected disability
rated totally disabling if--
(A) the disability was continuously rated
totally disabling for a period of 10 or more
years immediately preceding death;
(B) the disability was continuously rated
totally disabling for a period of not less than
five years from the date of such veteran's
discharge or other release from active duty; or
(C) the veteran was a former prisoner of war
who died after September 30, 1999, and the
disability was continuously rated totally
disabling for a period of not less than one
year immediately preceding death.
* * * * * * *
Sec. 3707. Adjustable rate mortgages
(a) The Secretary shall carry out a demonstration project
under this section during fiscal years 1993 through [2012] 2014
for the purpose of guaranteeing loans in a manner similar to
the manner in which the Secretary of Housing and Urban
Development insures adjustable rate mortgages under section 251
of the National Housing Act.
* * * * * * *
Sec. 3707A. Hybrid adjustable rate mortgages
(a) The Secretary shall carry out a demonstration project
under this section during fiscal years 2004 through [2012] 2014
for the purpose of guaranteeing loans in a manner similar to
the manner in which the Secretary of Housing and Urban
Development insures adjustable rate mortgages under section 251
of the National Housing Act in accordance with the provisions
of this section with respect to hybrid adjustable rate
mortgages described in subsection (b).
* * * * * * *
SUBCHAPTER III--ADMINISTRATIVE PROVISIONS
Sec. 3720. Powers of Secretary
(a) * * *
* * * * * * *
(h)(1) * * *
(2) The Secretary may not under this subsection guarantee the
payment of principal and interest on certificates or other
securities issued or approved after [December 31, 2011]
December 31, 2016.
* * * * * * *
Sec. 3729. Loan fee
(a) * * *
(b) Determination of Fee.--(1) * * *
(2) The loan fee table referred to in paragraph (1) is as
follows:
LOAN FEE TABLE
------------------------------------------------------------------------
Active duty Other
Type of loan veteran Reservist obligor
------------------------------------------------------------------------
(A)(i) Initial loan described 2.00 2.75 NA
in section 3710(a) to
purchase or construct a
dwelling with 0-down, or any
other initial loan described
in section 3710(a) other than
with 5-down or 10-down
(closed before January 1,
2004)........................
------------------------------------------------------------------------
(A)(ii) Initial loan described 2.20 2.40 NA
in section 3710(a) to
purchase or construct a
dwelling with 0-down, or any
other initial loan described
in section 3710(a) other than
with 5-down or 10-down
(closed on or after January
1, 2004, and before October
1, 2004).....................
------------------------------------------------------------------------
(A)(iii) Initial loan 2.15 2.40 NA
described in section 3710(a)
to purchase or construct a
dwelling with 0-down, or any
other initial loan described
in section 3710(a) other than
with 5-down or 10-down
(closed on or after October
1, 2004, and before [October
1, 2011] October 1, 2017)....
------------------------------------------------------------------------
(A)(iv) Initial loan described 1.40 1.65 NA
in section 3710(a) to
purchase or construct a
dwelling with 0-down, or any
other initial loan described
in section 3710(a) other than
with 5-down or 10-down
(closed on or after [October
1, 2011] October 1, 2017)....
------------------------------------------------------------------------
(B)(i) Subsequent loan 3.30 3.30 NA
described in section 3710(a)
to purchase or construct a
dwelling with 0-down, or any
other subsequent loan
described in section 3710(a)
(closed before [October 1,
2011] October 1, 2017).......
------------------------------------------------------------------------
[(B)(ii) Subsequent loan 2.80 2.80 NA
described in section 3710(a)
to purchase or construct a
dwelling with 0-down, or any
other subsequent loan
described in section 3710(a)
(closed on or after October
1, 2011, and before October
1, 2012).....................
------------------------------------------------------------------------
[(B)(iii) Subsequent loan 2.15 2.15 NA]
described in section 3710(a)
to purchase or construct a
dwelling with 0-down, or any
other subsequent loan
described in section 3710(a)
(closed on or after October
1, 2012 and before October 1,
2013)........................
------------------------------------------------------------------------
(B)[(iv)] (ii) Subsequent loan 1.25 1.25 NA
described in section 3710(a)
to purchase or construct a
dwelling with 0-down, or any
other subsequent loan
described in section 3710(a)
(closed on or after [October
1, 2013] October 1, 2017)....
------------------------------------------------------------------------
(C)(i) Loan described in 1.50 1.75 NA
section 3710(a) to purchase
or construct a dwelling with
5-down (closed before
[October 1, 2011] October 1,
2017)........................
------------------------------------------------------------------------
(C)(ii) Loan described in 0.75 1.00 NA
section 3710(a) to purchase
or construct a dwelling with
5-down (closed on or after
[October 1, 2011] October 1,
2017)........................
------------------------------------------------------------------------
(D)(i) Initial loan described 1.25 1.50 NA
in section 3710(a) to
purchase or construct a
dwelling with 10-down (closed
before [October 1, 2011]
October 1, 2017).............
------------------------------------------------------------------------
(D)(ii) Initial loan described 0.50 0.75 NA
in section 3710(a) to
purchase or construct a
dwelling with 10-down (closed
on or after [October 1, 2011]
October 1, 2017).............
------------------------------------------------------------------------
(E) Interest rate reduction 0.50 0.50 NA
refinancing loan.............
------------------------------------------------------------------------
(F) Direct loan under section 1.00 1.00 NA
3711.........................
------------------------------------------------------------------------
(G) Manufactured home loan 1.00 1.00 NA
under section 3712 (other
than an interest rate
reduction refinancing loan)..
------------------------------------------------------------------------
(H) Loan to Native American 1.25 1.25 NA
veteran under section 3762
(other than an interest rate
reduction refinancing loan)..
------------------------------------------------------------------------
(I) Loan assumption under 0.50 0.50 0.50
section 3714.................
------------------------------------------------------------------------
(J) Loan under section 3733(a) 2.25 2.25 2.25
------------------------------------------------------------------------
* * * * * * *
CHAPTER 41--JOB COUNSELING, TRAINING, AND PLACEMENT SERVICE FOR
VETERANS
Sec.
4100. Findings.
* * * * * * *
[4113. Outstationing of Transition Assistance Program personnel.]
4113. Transition Assistance Program personnel.
* * * * * * *
* * * * * * *
Sec. 4103A. Disabled veterans' outreach program
(a) * * *
* * * * * * *
(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.
(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.
Sec. 4104. Local veterans' employment representatives
(a) * * *
* * * * * * *
(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.
(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.
[(e)] (f) Reporting.--Each local veterans' employment
representative shall be administratively responsible to the
manager of the employment service delivery system and shall
provide reports, not less frequently than quarterly, to the
manager of such office and to the Director for Veterans'
Employment and Training for the State regarding compliance with
Federal law and regulations with respect to special services
and priorities for eligible veterans and eligible persons.
* * * * * * *
Sec. 4107. Administrative controls; annual report
(a) * * *
* * * * * * *
(c) Not later than February 1 of each year, the Secretary
shall report to the Committees on Veterans' Affairs of the
Senate and the House of Representatives on the success during
the preceding program year of the Department of Labor and its
affiliated State employment service agencies in carrying out
the provisions of this chapter and programs for the provision
of employment and training services to meet the needs of
eligible veterans and eligible persons. The report shall
include--
(1) * * *
(2) a comparison of the rate of entered employment
(as determined in a manner consistent with State
performance measures applicable under section 136(b) of
the Workforce Investment Act of 1998) for each of the
categories of veterans and persons described in [clause
(1)] paragraph (1) of this subsection with such rate of
entered employment (as so determined) for nonveterans
of the same age groups registered for assistance with
the public employment system in each State;
* * * * * * *
(5) a report on the operation during the preceding
program year of programs for the provision of
employment and training services designed to meet the
needs of eligible veterans and eligible persons,
including an evaluation of the effectiveness of such
programs during such program year in meeting the
requirements of section 4102A(b) of this title, the
efficiency with which services were provided through
such programs during such year, and such
recommendations for further legislative action relating
to veterans' employment and training as the Secretary
considers appropriate; [and]
(6) a report on the operation during the preceding
program year of the program of performance incentive
awards for quality employment services under section
4112 of this title[.]; and
(7) performance measures for the provision of
assistance under this chapter, including--
(A) the percentage of participants in
programs under this chapter who are employed
after the 180-day period following their
completion of the program;
(B) the percentage of such participants who
are employed after the one-year period
following their completion of the program;
(C) the median earnings of such participants
after the 180-day period following their
completion of the program;
(D) the median earnings of such participants
after the one-year period following their
completion of the program; and
(E) the percentage of participants in such
program who complete a certificate, degree,
diploma, licensure, or industry-recognized
credential while they are participating in the
program or within one year of completing the
program.
* * * * * * *
Sec. 4109. National Veterans' Employment and Training Services
Institute
(a) * * *
* * * * * * *
(d) The Secretary shall require that each individual who
receives training provided by the Institute, or its successor,
is given a final examination to evaluate the individual's
performance in receiving such training. Each such evaluation
shall be designed to provide the individual with a grade, which
shall be designated as either a passing grade or a failing
grade. The results of such final examination shall be provided
to the entity that sponsored the individual who received the
training.
* * * * * * *
[Sec. 4113. Outstationing of Transition Assistance Program personnel
[(a) Stationing of TAP Personnel at Overseas Military
Installations.--(1) The Secretary--
[(A) shall station employees of the Veterans'
Employment and Training Service, or contractors under
subsection (c), at each veterans assistance office
described in paragraph (2); and
[(B) may station such employees or contractors at
such other military installations outside the United
States as the Secretary, after consultation with the
Secretary of Defense, determines to be appropriate or
desirable to carry out the purposes of this chapter.
[(2) Veterans assistance offices referred to in paragraph
(1)(A) are those offices that are established by the Secretary
of Veterans Affairs on military installations pursuant to the
second sentence of section 6304(a) of this title.
[(b) Functions.--Employees (or contractors) stationed at
military installations pursuant to subsection (a) shall
provide, in person, counseling, assistance in identifying
employment and training opportunities, help in obtaining such
employment and training, and other related information and
services to members of the Armed Forces who are being separated
from active duty, and the spouses of such members, under the
Transition Assistance Program and Disabled Transition
Assistance Program established in section 1144 of title 10.
[(c) Authority To Contract With Private Entities.--The
Secretary, consistent with section 1144 of title 10, may enter
into contracts with public or private entities to provide, in
person, some or all of the counseling, assistance, information
and services under the Transition Assistance Program required
under subsection (a).]
Sec. 4113. Transition Assistance Program personnel
(a) Authority 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--
(1) counseling;
(2) assistance in identifying employment and training
opportunities and help in obtaining such employment and
training;
(3) other related information and services under such
section; and
(4) any other services that the Secretary determines
are appropriate.
Sec. 4114. Credentialing and licensure of veterans: demonstration
project
(a) * * *
(b) Identification of Military Occupational Specialties and
Associated Credentials and Licenses.--(1) The Assistant
Secretary shall select [not less than 10] not less than 5 but
not more than 10 military occupational specialties for purposes
of the demonstration project. Each specialty so selected by the
Assistant Secretary shall require a skill or set of skills that
is required for civilian employment in an industry with high
growth or high worker demand.
(2) The Assistant Secretary shall [consult with appropriate
Federal, State, and industry officials] enter into a contract
with an appropriate entity representing a coalition of State
governors to identify requirements for credentials,
certifications, and licenses that require a skill or set of
skills required by a military occupational specialty selected
under paragraph (1).
* * * * * * *
(g) Period of Project.--The period during which the Assistant
Secretary may carry out the demonstration project under this
section shall be the period beginning on the date that is 60
days after the date of the enactment of the [Veterans Benefits,
Health Care, and Information Technology Act of 2006] Veterans
Opportunity to Work Act of 2011 and ending on [September 30,
2009] September 30, 2014.
(h) Funding.--The Assistant Secretary may carry out the
demonstration project under this section [utilizing unobligated
funds] using not more than $180,000 of the funds in each fiscal
year that are appropriated in accordance with the authorization
set forth in section 4106 of this title, to be derived from
amounts otherwise made available to carry out sections 4103A
and 4104 of this title.
(i) Report to Congress.--Not later than 30 days after the
last day of a fiscal year during which the demonstration
project under this section is carried out, the Assistant
Secretary, in coordination with the entity with which the
Assistant Secretary enters into a contract under subsection
(b)(2), shall submit to the Committees on Veterans' Affairs of
the Senate and House of Representatives a report on the
implementation of the demonstration project during that fiscal
year.
* * * * * * *
CHAPTER 42--EMPLOYMENT AND TRAINING OF VETERANS
* * * * * * *
Sec. 4215. Priority of service for veterans in Department of Labor job
training programs
(a) Definitions.--In this section:
(1) * * *
* * * * * * *
(3) The term ``priority of service'' means, with
respect to any qualified job training program, that a
covered person shall be given priority over nonveterans
for the receipt of employment, training, and placement
services provided under that program, notwithstanding
any other provision of law. 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.
* * * * * * *
[(d) Addition to Annual Report.--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, and 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.]
(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.
* * * * * * *
CHAPTER 43--EMPLOYMENT AND REEMPLOYMENT RIGHTS OF MEMBERS OF THE
UNIFORMED SERVICES
SUBCHAPTER I--GENERAL
* * * * * * *
Sec. 4303. Definitions
For the purposes of this chapter--
(1) * * *
(2) The term ``benefit'', ``benefit of employment'',
or ``rights and benefits'' means the terms, conditions,
or privileges of employment, including any advantage,
profit, privilege, gain, status, account, or interest
(including wages or salary for work performed) that
accrues by reason of an employment contract or
agreement or an employer policy, plan, or practice and
includes rights and benefits under a pension plan, a
health plan, an employee stock ownership plan,
insurance coverage and awards, bonuses, severance pay,
supplemental unemployment benefits, vacations, and the
opportunity to select work hours or location of
employment.
* * * * * * *
PART IV--GENERAL ADMINISTRATIVE PROVISIONS
* * * * * * *
CHAPTER 55--MINORS, INCOMPETENTS, AND OTHER WARDS
* * * * * * *
Sec. 5503. Hospitalized veterans and estates of incompetent
institutionalized veterans
(a) * * *
* * * * * * *
(d)(1) * * *
* * * * * * *
(7) This subsection expires on [May 31, 2015] May 31, 2016.
* * * * * * *
----------
TITLE 10, UNITED STATES CODE
* * * * * * *
SUBTITLE A--GENERAL MILITARY LAW
* * * * * * *
PART II--PERSONNEL
* * * * * * *
CHAPTER 58--BENEFITS AND SERVICES FOR MEMBERS BEING SEPARATED OR
RECENTLY SEPARATED
* * * * * * *
Sec. 1144. Employment assistance, job training assistance, and other
transitional services: Department of Labor
(a) * * *
* * * * * * *
(c) Participation.--The Secretary of Defense and the
Secretary of Homeland Security [shall encourage and otherwise
promote maximum participation by members of the armed forces
eligible for assistance under the program carried out under
this section.] shall encourage the participation of members of
the armed forces in pay grades E-8 and above and O-6 and above
who are eligible for assistance under the program and shall
require the participation of all other members of the armed
forces who are eligible for assistance under the program unless
a documented urgent operational requirement prevents attendance
or an individual service member, with written approval of their
commander, chooses to decline participation, in writing, based
on post-service employment or acceptance to an education
program. Such documentation shall be included in the personnel
record of the member.
* * * * * * *
(e) Reports and Audits.--(1) Not later than January 30 of
each year, the Secretary of Labor shall submit to the
Committees on Veterans' Affairs of the Senate and House of
Representatives a report on the program established under this
section that includes the number of members of the armed forces
eligible for assistance under the program who participated in
the program within 30, 90, and 180 days of being separated from
active duty, and the percentages of all such eligible
participants who participated within each such time period.
(2)(A) The Secretary of Labor shall enter into a contract
with an appropriate entity to conduct an audit of the program
established under this section not less frequently than once
every three years and to submit to the Secretary of Defense,
the Secretary of Labor, the Secretary of Veterans Affairs, and
the Committees on Veterans' Affairs of the Senate and House of
Representatives a report containing the results of each such
audit.
(B)(i) Except as provided in clause (ii), the Secretary of
Labor shall enter into the contract under subparagraph (A) with
an appropriate entity that is a small business concern owned
and controlled by veterans or a small business concern owned
and controlled by service-disabled veterans and that is
included in the database of veteran-owned businesses maintained
under subsection (f) of section 8127 of title 38 and verified
by the Secretary pursuant to paragraph (4) of that subsection.
(ii) If the Secretary of Labor is unable to enter into the
contract under subparagraph (A) with a qualified business
concern described in clause (i), the Secretary shall enter into
such contract with another qualified appropriate entity.
(C) The Secretary of Labor shall enter into the contract
under this paragraph using funds made available for the State
grant program authorized under section 4102A of title 38.
(f) Program Outcomes.--The Secretary of Labor and the
Secretary of Defense shall jointly develop a method to assess
the outcomes for individuals who participate in the program
established under this section. Such method shall be designed
to determine the following outcomes:
(1) The length of the period during which the
individual was unemployed following the individual's
separation from active duty.
(2) The beginning salary paid to the individual for
the first job the individual obtained following such
separation.
(3) The number of months of school or other training
the individual attended during the first 12-month
period following such separation.
* * * * * * *
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SECTION 501 OF THE VETERANS BENEFITS IMPROVEMENT ACT OF 2008
SEC. 501. TEMPORARY INCREASE IN MAXIMUM LOAN GUARANTY AMOUNT FOR
CERTAIN HOUSING LOANS GUARANTEED BY SECRETARY OF
VETERANS AFFAIRS
Notwithstanding subparagraph (C) of section 3703(a)(1) of
title 38, United States Code, for purposes of any loan
described in subparagraph (A)(i)(IV) of such section that is
originated during the period beginning on the date of the
enactment of this Act and ending on [December 31, 2011]
December 31, 2014, the term ``maximum guaranty amount'' shall
mean an amount equal to 25 percent of the higher of--
(1) * * *
* * * * * * *
DISSENTING VIEWS
I appreciate Chairman Miller's efforts to make meaningful
change in the lives of our veterans and their families with
this legislation but we need to be clear about what H.R. 2433,
the Veterans Opportunity to Work Act, is and what it is not and
how this measure is paid for. This bill is not a jobs bill,
however it may be portrayed. This bill creates no new jobs.
Rather, it is a retraining bill. It seeks to assist some
veterans in the age group of 35 to 60 who have been out of the
military for years and have transitioned into the civilian
world, while doing little to assist returning servicemembers
who are facing double-digit unemployment rates. While I fully
support widening the opportunities for all of our veterans by
providing them with additional skills, I do not believe we
should take from some veterans to provide assistance to other
veterans.
In order to pay for this legislation, this bill would
extend higher loan fees on our veterans that utilize the VA
Home Loan Guarantee Program and then use those monies to pay
for the monthly stipend and retraining costs created by this
bill. By not allowing the higher loan fee rates to expire to
much lower rates and by extending the higher rates for 10
years, we are effectively taxing a specific group of veterans
for using a benefit. The House Majority Leader, Representative
Cantor of Virginia, said on July 11, 2011, that ``We don't
believe you ought to be raising taxes right now in this
recession, in this economy[.]''
If this is the belief of our colleagues, then we must be
consistent in how we apply these beliefs. If allowing the Bush
tax cuts to expire was characterized as a tax increase, then
not allowing these higher rates to expire should also be
characterized as a tax increase. We need to be crystal clear as
to what we are doing, and say in plain language that we are
raising taxes on veterans. I believe it is wrong and
hypocritical of this Committee to move forward with, to use the
Majority's own logic, a tax increase on a certain portion of
our veterans. During these troubled economic times and high
veteran unemployment, we should not seek to make home ownership
more difficult for veterans. I support many of the changes this
bill makes, but the underlying issue is that all programs are
being funded on the backs of veterans. It is unconscionable
that this Committee cavalierly passes a tax increase on
veterans while Congress is fighting to prevent any other type
of tax increase. If Congress is serious about these programs
then Congress should seek to truly find funding for these
programs instead of taking the funds from our veterans'
pockets.
I want to be transparent about this ``shell game'' and how
we are paying for it, so we are not back here later talking
about how we had some ``unintended consequences'' and we then
have to find some way to pay for the ``pay-for.''
Simply put, in order to pay for this bill, we will charge
our veterans more for the use of their benefit in one program
so we can pay for other veterans and their benefits in another
program. In this economy where our national housing market is
very depressed, where we, on this Committee, have worked so
very hard to protect our veterans from home foreclosures, we
must carefully weigh our actions and be sure that the actions
we take are not going to make it more difficult for a veteran
to purchase or keep a home.
All too often we read about veterans who come home with the
invisible wounds of war and cannot find the dignity and
security that work provides. We read about increasing suicide
statistics, problems at home, substance abuse, and even in
rising homelessness among our veterans. Unemployment among
veterans, and all of our citizens, is a national tragedy. A
recent article in the Los Angeles Times dated July 11, 2011,
stated that ``Unemployment among recently returned veterans,
already in double digits, is poised to get worse as more
soldiers return from Iraq and Afghanistan.'' According to the
Bureau of Labor Statistics, unemployment among Gulf War-era II
veterans aged 18-24 was nearly 21 percent in 2010. Our focus
should be to help recently separated veterans who are in
desperate need of transition assistance and have very little
experience in the civilian sector. Many of our recently
separated veterans suffer from serious injuries such as: Post-
Traumatic Stress Disorder, Traumatic Brain Injuries, blindness
and amputations.
The Majority believes that it has found the quality of
instruction in classes taught by contract instructors to be
superior to those taught by DVOPS and LVERS. No fault has been
found with the VA portion of the instruction and if Department
of Labor instruction is subpar then the Committee has an
obligation to fix it--not to immediately seek to contract it
out. This is an area that we prefer to have the Department of
Labor continue to perform because they do have more experience
and tend to have less turnover than part-time contractors.
This Committee should be working tirelessly to find ways to
create real jobs for veterans. The Majority has failed to
convince me that this measure will do this. I am willing to
support needed improvements in the current retraining regime
once we demonstrate a real need for these improvements. Once
again, the Majority has failed to convince me that this is the
case.
Finally, I simply cannot support, in these troubled
economic times, an approach that seeks to continue higher loan
fees that are scheduled to decrease, an approach that can only
be characterized as taxing some veterans to pay for the
benefits of other veterans. I simply cannot understand why it
is acceptable for them to do this to veterans while vigorously
resisting any attempt to promote increased revenues to address
our fiscal situation from those who are well-off.
Bob Filner.