[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[H.R. 674 Engrossed Amendment Senate (EAS)]

                  In the Senate of the United States,

                                                     November 10, 2011.
    Resolved, That the bill from the House of Representatives (H.R. 
674) entitled ``An Act to amend the Internal Revenue Code of 1986 to 
repeal the imposition of 3 percent withholding on certain payments made 
to vendors by government entities, to modify the calculation of 
modified adjusted gross income for purposes of determining eligibility 
for certain healthcare-related programs, and for other purposes.'', do 
pass with the following

                               AMENDMENT:

            Strike title II and insert the following:

                      TITLE II--VOW TO HIRE HEROES

Sec. 201. Short title.

                    Subtitle A--Retraining Veterans

Sec. 211. Veterans retraining assistance program.

        Subtitle B--Improving the Transition Assistance Program

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

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

Sec. 231. Two-year extension of authority of Secretary of Veterans 
                            Affairs to provide rehabilitation and 
                            vocational benefits to members of the Armed 
                            Forces with severe injuries or illnesses.
Sec. 232. Expansion of authority of Secretary of Veterans Affairs to 
                            pay employers for providing on-job training 
                            to veterans who have not been rehabilitated 
                            to point of employability.
Sec. 233. Training and rehabilitation for veterans with service-
                            connected disabilities who have exhausted 
                            rights to unemployment benefits under State 
                            law.
Sec. 234. Collaborative veterans' training, mentoring, and placement 
                            program.
Sec. 235. Appointment of honorably discharged members and other 
                            employment assistance.
Sec. 236. Department of Defense pilot program on work experience for 
                            members of the Armed Forces on terminal 
                            leave.
Sec. 237. Enhancement of demonstration program on credentialing and 
                            licensing of veterans.
Sec. 238. Inclusion of performance measures in annual report on veteran 
                            job counseling, training, and placement 
                            programs of the Department of Labor.
Sec. 239. Clarification of priority of service for veterans in 
                            Department of Labor job training programs.
Sec. 240. Evaluation of individuals receiving training at the National 
                            Veterans' Employment and Training Services 
                            Institute.
Sec. 241. Requirements for full-time disabled veterans' outreach 
                            program specialists and local veterans' 
                            employment representatives.

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

Sec. 251. Clarification of benefits of employment covered under USERRA.

                       Subtitle E--Other Matters

Sec. 261. Returning heroes and wounded warriors work opportunity tax 
                            credits.
Sec. 262. Extension of reduced pension for certain veterans covered by 
                            Medicaid plans for services furnished by 
                            nursing facilities.
Sec. 263. Reimbursement rate for ambulance services.
Sec. 264. Extension of authority for Secretary of Veterans Affairs to 
                            obtain information from Secretary of 
                            Treasury and Commissioner of Social 
                            Security for income verification purposes.
Sec. 265. Modification of loan guaranty fee for certain subsequent 
                            loans.

        TITLE III--OTHER PROVISIONS RELATING TO FEDERAL VENDORS

Sec. 301. One hundred percent levy for payments to Federal vendors 
                            relating to property.
Sec. 302. Study and report on reducing the amount of the tax gap owed 
                            by Federal contractors.

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

Sec. 401. Modification of calculation of modified adjusted gross income 
                            for determining certain healthcare program 
                            eligibility.

                       TITLE V--BUDGETARY EFFECTS

Sec. 501. Statutory Pay-As-You-Go Act of 2010.

                      TITLE II--VOW TO HIRE HEROES

SEC. 201. SHORT TITLE.

    This title may be cited as the ``VOW to Hire Heroes Act of 2011''.

                    Subtitle A--Retraining Veterans

SEC. 211. VETERANS RETRAINING ASSISTANCE PROGRAM.

    (a) Program Authorized.--
            (1) In general.--Not later than July 1, 2012, the Secretary 
        of Veterans Affairs shall, in collaboration with the Secretary 
        of Labor, establish and commence a program of retraining 
        assistance for eligible veterans.
            (2) Number of eligible veterans.--The number of unique 
        eligible veterans who participate in the program established 
        under paragraph (1) may not exceed--
                    (A) 45,000 during fiscal year 2012; and
                    (B) 54,000 during the period beginning October 1, 
                2012, and ending March 31, 2014.
    (b) Retraining Assistance.--Except as provided by subsection (k), 
each veteran who participates in the program established under 
subsection (a)(1) shall be entitled to up to 12 months of retraining 
assistance provided by the Secretary of Veterans Affairs. Such 
retraining assistance may only be used by the veteran to pursue a 
program of education (as such term is defined in section 3452(b) of 
title 38, United States Code) for training, on a full-time basis, 
that--
            (1) is approved under chapter 36 of such title;
            (2) is offered by a community college or technical school;
            (3) leads to an associate degree or a certificate (or other 
        similar evidence of the completion of the program of education 
        or training);
            (4) is designed to provide training for a high-demand 
        occupation, as determined by the Commissioner of Labor 
        Statistics; and
            (5) begins on or after July 1, 2012.
    (c) Monthly Certification.--Each veteran who participates in the 
program established under subsection (a)(1) shall certify to the 
Secretary of Veterans Affairs the enrollment of the veteran in a 
program of education described in subsection (b) for each month in 
which the veteran participates in the program.
    (d) Amount of Assistance.--The monthly amount of the retraining 
assistance payable under this section is the amount in effect under 
section 3015(a)(1) of title 38, United States Code.
    (e) Eligibility.--
            (1) In general.--For purposes of this section, an eligible 
        veteran is a veteran who--
                    (A) as of the date of the submittal of the 
                application for assistance under this section, is at 
                least 35 years of age but not more than 60 years of 
                age;
                    (B) was last discharged from active duty service in 
                the Armed Forces under conditions other than 
                dishonorable;
                    (C) as of the date of the submittal of the 
                application for assistance under this section, is 
                unemployed;
                    (D) as of the date of the submittal of the 
                application for assistance under this section, is not 
                eligible to receive educational assistance under 
                chapter 30, 31, 32, 33, or 35 of title 38, United 
                States Code, or chapter 1606 or 1607 of title 10, 
                United States Code;
                    (E) is not in receipt of compensation for a 
                service-connected disability rated totally disabling by 
                reason of unemployability;
                    (F) was not and is not enrolled in any Federal or 
                State job training program at any time during the 180-
                day period ending on the date of the submittal of the 
                application for assistance under this section; and
                    (G) by not later than October 1, 2013, submits to 
                the Secretary of Labor an application for assistance 
                under this section containing such information and 
                assurances as that Secretary may require.
            (2) Determination of eligibility.--
                    (A) Determination by secretary of labor.--
                            (i) In general.--For each application for 
                        assistance under this section received by the 
                        Secretary of Labor from an applicant, the 
                        Secretary of Labor shall determine whether the 
                        applicant is eligible for such assistance under 
                        subparagraphs (A), (C), (F), and (G) of 
                        paragraph (1).
                            (ii) Referral to secretary of veterans 
                        affairs.--If the Secretary of Labor determines 
                        under clause (i) that an applicant is eligible 
                        for assistance under this section, the 
                        Secretary of Labor shall forward the 
                        application of such applicant to the Secretary 
                        of Veterans Affairs in accordance with the 
                        terms of the agreement required by subsection 
                        (h).
                    (B) Determination by secretary of veterans 
                affairs.--For each application relating to an applicant 
                received by the Secretary of Veterans Affairs under 
                subparagraph (A)(ii), the Secretary of Veterans Affairs 
                shall determine under subparagraphs (B), (D), and (E) 
                of paragraph (1) whether such applicant is eligible for 
                assistance under this section.
    (f) Employment Assistance.--For each veteran who participates in 
the program established under subsection (a)(1), the Secretary of Labor 
shall contact such veteran not later than 30 days after the date on 
which the veteran completes, or terminates participation in, such 
program to facilitate employment of such veteran and availability or 
provision of employment placement services to such veteran.
    (g) Charging of Assistance Against Other Entitlement.--Assistance 
provided under this section shall be counted against the aggregate 
period for which section 3695 of title 38, United States Code, limits 
the individual's receipt of educational assistance under laws 
administered by the Secretary of Veterans Affairs.
    (h) Joint Agreement.--
            (1) In general.--The Secretary of Veterans Affairs and the 
        Secretary of Labor shall enter into an agreement to carry out 
        this section.
            (2) Appeals process.--The agreement required by paragraph 
        (1) shall include establishment of a process for resolving 
        disputes relating to and appeals of decisions of the 
        Secretaries under subsection (e)(2).
    (i) Report.--
            (1) In general.--Not later than July 1, 2014, the Secretary 
        of Veterans Affairs shall, in collaboration with the Secretary 
        of Labor, submit to the appropriate committees of Congress a 
        report on the retraining assistance provided under this 
        section.
            (2) Elements.--The report required by paragraph (1) shall 
        include the following:
                    (A) The total number of--
                            (i) eligible veterans who participated; and
                            (ii) associates degrees or certificates 
                        awarded (or other similar evidence of the 
                        completion of the program of education or 
                        training earned).
                    (B) Data related to the employment status of 
                eligible veterans who participated.
    (j) Funding.--Payments under this section shall be made from 
amounts appropriated to or otherwise made available to the Department 
of Veterans Affairs for the payment of readjustment benefits. Not more 
than $2,000,000 shall be made available from such amounts for 
information technology expenses (not including personnel costs) 
associated with the administration of the program established under 
subsection (a)(1).
    (k) Termination of Authority.--The authority to make payments under 
this section shall terminate on March 31, 2014.
    (l) Appropriate Committees of Congress Defined.--In this section, 
the term ``appropriate committees of Congress'' means--
            (1) the Committee on Veterans' Affairs and the Committee on 
        Health, Education, Labor, and Pension of the Senate; and
            (2) the Committee on Veterans' Affairs and the Committee on 
        Education and the Workforce of the House of Representatives.

        Subtitle B--Improving the Transition Assistance Program

SEC. 221. MANDATORY PARTICIPATION OF MEMBERS OF THE ARMED FORCES IN THE 
              TRANSITION ASSISTANCE PROGRAM OF DEPARTMENT OF DEFENSE.

    (a) In General.--Subsection (c) of section 1144 of title 10, United 
States Code, is amended to read as follows:
    ``(c) Participation.--(1) Except as provided in paragraph (2), the 
Secretary of Defense and the Secretary of Homeland Security shall 
require the participation in the program carried out under this section 
of the members eligible for assistance under the program.
    ``(2) The Secretary of Defense and the Secretary of Homeland 
Security may, under regulations such Secretaries shall prescribe, waive 
the participation requirement of paragraph (1) with respect to--
            ``(A) such groups or classifications of members as the 
        Secretaries determine, after consultation with the Secretary of 
        Labor and the Secretary of Veterans Affairs, for whom 
        participation is not and would not be of assistance to such 
        members based on the Secretaries' articulable justification 
        that there is extraordinarily high reason to believe the 
        exempted members are unlikely to face major readjustment, 
        health care, employment, or other challenges associated with 
        transition to civilian life; and
            ``(B) individual members possessing specialized skills who, 
        due to unavoidable circumstances, are needed to support a 
        unit's imminent deployment.''.
    (b) Required Use of Employment Assistance, Job Training Assistance, 
and Other Transitional Services in Preseparation Counseling.--Section 
1142(a)(2) of such title is amended by striking ``may'' and inserting 
``shall''.
    (c) Effective Date.--The amendments made by subsections (a) and (b) 
shall take effect on the date that is 1 year after the date of the 
enactment of this Act.

SEC. 222. INDIVIDUALIZED ASSESSMENT FOR MEMBERS OF THE ARMED FORCES 
              UNDER TRANSITION ASSISTANCE ON EQUIVALENCE BETWEEN SKILLS 
              DEVELOPED IN MILITARY OCCUPATIONAL SPECIALTIES AND 
              QUALIFICATIONS REQUIRED FOR CIVILIAN EMPLOYMENT WITH THE 
              PRIVATE SECTOR.

    (a) Study on Equivalence Required.--
            (1) In general.--The Secretary of Labor shall, in 
        consultation with the Secretary of Defense and the Secretary of 
        Veterans Affairs, enter into a contract with a qualified 
        organization to conduct a study to identify any equivalences 
        between the skills developed by members of the Armed Forces 
        through various military occupational specialties (MOS), 
        successful completion of resident training courses, attaining 
        various military ranks or rates, or other military experiences 
        and the qualifications required for various positions of 
        civilian employment in the private sector.
            (2) Cooperation of federal agencies.--The departments and 
        agencies of the Federal Government, including the Office of 
        Personnel Management, the General Services Administration, the 
        Government Accountability Office, the Department of Education, 
        and other appropriate departments and agencies, shall cooperate 
        with the contractor under paragraph (1) to conduct the study 
        required under that paragraph.
            (3) Report.--Upon completion of the study conducted under 
        paragraph (1), the contractor under that paragraph shall submit 
        to the Secretary of Defense, the Secretary of Veterans Affairs, 
        and the Secretary of Labor a report setting forth the results 
        of the study. The report shall include such information as the 
        Secretaries shall specify in the contract under paragraph (1) 
        for purposes of this section.
            (4) Transmittal to congress.--The Secretary of Labor shall 
        transmit to the appropriate committees of Congress the report 
        submitted under paragraph (3), together with such comments on 
        the report as the Secretary considers appropriate.
            (5) Appropriate committees of congress defined.--In this 
        subsection, the term ``appropriate committees of Congress'' 
        means--
                    (A) the Committee on Veterans' Affairs, the 
                Committee on Armed Services, and the Committee on 
                Health, Education, Labor, and Pension of the Senate; 
                and
                    (B) the Committee on Veterans' Affairs, the 
                Committee on Armed Services, and the Committee on 
                Education and the Workforce of the House of 
                Representatives.
    (b) Publication.--The secretaries described in subsection (a)(1) 
shall ensure that the equivalences identified under subsection (a)(1) 
are--
            (1) made publicly available on an Internet website; and
            (2) regularly updated to reflect the most recent findings 
        of the secretaries with respect to such equivalences.
    (c) Individualized Assessment of Civilian Positions Available 
Through Military Experiences.--The Secretary of Defense shall ensure 
that each member of the Armed Forces who is participating in the 
Transition Assistance Program (TAP) of the Department of Defense 
receives, as part of such member's participation in that program, an 
individualized assessment of the various positions of civilian 
employment in the private sector for which such member may be qualified 
as a result of the skills developed by such member through various 
military occupational specialties (MOS), successful completion of 
resident training courses, attaining various military ranks or rates, 
or other military experiences. The assessment shall be performed using 
the results of the study conducted under subsection (a) and such other 
information as the Secretary of Defense, in consultation with the 
Secretary of Veterans Affairs and the Secretary of Labor, considers 
appropriate for that purpose.
    (d) Further Use in Employment-related Transition Assistance.--
            (1) Transmittal of assessment.--The Secretary of Defense 
        shall make the individualized assessment provided a member 
        under subsection (a) available electronically to the Secretary 
        of Veterans Affairs and the Secretary of Labor.
            (2) Use in assistance.--The Secretary of Veterans Affairs 
        and the Secretary of Labor may use an individualized assessment 
        with respect to an individual under paragraph (1) for 
        employment-related assistance in the transition from military 
        service to civilian life provided the individual by such 
        Secretary and to otherwise facilitate and enhance the 
        transition of the individual from military service to civilian 
        life.
    (e) Effective Date.--This section shall take effect on the date 
that is one year after the date of the enactment of this Act.

SEC. 223. TRANSITION ASSISTANCE PROGRAM CONTRACTING.

    (a) Transition Assistance Program Contracting.--
            (1) In general.--Section 4113 of title 38, United States 
        Code, is amended to read as follows:
``Sec. 4113. Transition Assistance Program personnel
    ``(a) Requirement to Contract.--In accordance with section 1144 of 
title 10, the Secretary shall enter into a contract with an appropriate 
private entity or entities to provide the functions described in 
subsection (b) at all locations where the program described in such 
section is carried out.
    ``(b) Functions.--Contractors under subsection (a) shall provide to 
members of the Armed Forces who are being separated from active duty 
(and the spouses of such members) the services described in section 
1144(a)(1) of title 10, including the following:
            ``(1) Counseling.
            ``(2) Assistance in identifying employment and training 
        opportunities and help in obtaining such employment and 
        training.
            ``(3) Assessment of academic preparation for enrollment in 
        an institution of higher learning or occupational training.
            ``(4) Other related information and services under such 
        section.
            ``(5) Such other services as the Secretary considers 
        appropriate.''.
            (2) Clerical amendment.--The table of sections at the 
        beginning of chapter 41 of title 38, United States Code, is 
        amended by striking the item relating to section 4113 and 
        inserting the following new item:

``4113. Transition Assistance Program personnel.''.
    (b) Deadline for Implementation.--The Secretary of Labor shall 
enter into the contract required by section 4113 of title 38, United 
States Code, as added by subsection (a), not later than two years after 
the date of the enactment of this Act.

SEC. 224. CONTRACTS WITH PRIVATE ENTITIES TO ASSIST IN CARRYING OUT 
              TRANSITION ASSISTANCE PROGRAM OF DEPARTMENT OF DEFENSE.

    Section 1144(d) of title 10, United States Code, is amended--
            (1) in paragraph (5), by striking ``public or private 
        entities; and'' and inserting ``public entities;'';
            (2) by redesignating paragraph (6) as paragraph (7); and
            (3) by inserting after paragraph (5), the following new 
        paragraph (6):
            ``(6) enter into contracts with private entities, 
        particularly with qualified private entities that have 
        experience with instructing members of the armed forces 
        eligible for assistance under the program carried out under 
        this section on--
                    ``(A) private sector culture, resume writing, 
                career networking, and training on job search 
                technologies;
                    ``(B) academic readiness and educational 
                opportunities; or
                    ``(C) other relevant topics; and''.

SEC. 225. IMPROVED ACCESS TO APPRENTICESHIP PROGRAMS FOR MEMBERS OF THE 
              ARMED FORCES WHO ARE BEING SEPARATED FROM ACTIVE DUTY OR 
              RETIRED.

    Section 1144 of title 10, United States Code, is amended by adding 
at the end the following new subsection:
    ``(e) Participation in Apprenticeship Programs.--As part of the 
program carried out under this section, the Secretary of Defense and 
the Secretary of Homeland Security may permit a member of the armed 
forces eligible for assistance under the program to participate in an 
apprenticeship program registered under the Act of August 16, 1937 
(commonly known as the `National Apprenticeship Act'; 50 Stat. 664, 
chapter 663; 29 U.S.C. 50 et seq.), or a pre-apprenticeship program 
that provides credit toward a program registered under such Act, that 
provides members of the armed forces with the education, training, and 
services necessary to transition to meaningful employment that leads to 
economic self-sufficiency.''.

SEC. 226. COMPTROLLER GENERAL REVIEW.

    Not later than two years after the date of the enactment of this 
Act, the Comptroller General of the United States shall conduct a 
review of the Transition Assistance Program (TAP) and submit to 
Congress a report on the results of the review and any recommendations 
of the Comptroller General for improving the program.

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

SEC. 231. TWO-YEAR EXTENSION OF AUTHORITY OF SECRETARY OF VETERANS 
              AFFAIRS TO PROVIDE REHABILITATION AND VOCATIONAL BENEFITS 
              TO MEMBERS OF THE ARMED FORCES WITH SEVERE INJURIES OR 
              ILLNESSES.

    Section 1631(b)(2) of the Wounded Warrior Act (title XVI of Public 
Law 110-181; 10 U.S.C. 1071 note) is amended by striking ``December 31, 
2012'' and inserting ``December 31, 2014''.

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

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

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

    (a) Entitlement to Additional Rehabilitation Programs.--
            (1) In general.--Section 3102 of title 38, United States 
        Code, is amended--
                    (A) in the matter before paragraph (1), by striking 
                ``A person'' and inserting the following:
    ``(a) In General.--A person''; and
                    (B) by adding at the end the following new 
                paragraph:
    ``(b) Additional Rehabilitation Programs for Persons Who Have 
Exhausted Rights to Unemployment Benefits Under State Law.--(1) Except 
as provided in paragraph (4), a person who has completed a 
rehabilitation program under this chapter shall be entitled to an 
additional rehabilitation program under the terms and conditions of 
this chapter if--
            ``(A) the person is described by paragraph (1) or (2) of 
        subsection (a); and
            ``(B) the person--
                    ``(i) has exhausted all rights to regular 
                compensation under the State law or under Federal law 
                with respect to a benefit year;
                    ``(ii) has no rights to regular compensation with 
                respect to a week under such State or Federal law; and
                    ``(iii) is not receiving compensation with respect 
                to such week under the unemployment compensation law of 
                Canada; and
            ``(C) begins such additional rehabilitation program within 
        six months of the date of such exhaustion.
    ``(2) For purposes of paragraph (1)(B)(i), a person shall be 
considered to have exhausted such person's rights to regular 
compensation under a State law when--
            ``(A) no payments of regular compensation can be made under 
        such law because such person has received all regular 
        compensation available to such person based on employment or 
        wages during such person's base period; or
            ``(B) such person's rights to such compensation have been 
        terminated by reason of the expiration of the benefit year with 
        respect to which such rights existed.
    ``(3) In this subsection, the terms `compensation', `regular 
compensation', `benefit year', `State', `State law', and `week' have 
the respective meanings given such terms under section 205 of the 
Federal-State Extended Unemployment Compensation Act of 1970 (26 U.S.C. 
3304 note).
    ``(4) No person shall be entitled to an additional rehabilitation 
program under paragraph (1) from whom the Secretary receives an 
application therefor after March 31, 2014.''.
            (2) Duration of additional rehabilitation program.--Section 
        3105(b) of such title is amended--
                    (A) by striking ``Except as provided in subsection 
                (c) of this section,'' and inserting ``(1) Except as 
                provided in paragraph (2) and in subsection (c),''; and
                    (B) by adding at the end the following new 
                paragraph:
    ``(2) The period of a vocational rehabilitation program pursued by 
a veteran under section 3102(b) of this title following a determination 
of the current reasonable feasibility of achieving a vocational goal 
may not exceed 12 months.''.
    (b) Extension of Period of Eligibility.--Section 3103 of such title 
is amended--
            (1) in subsection (a), by striking ``in subsection (b), 
        (c), or (d)'' and inserting ``in subsection (b), (c), (d), or 
        (e)'';
            (2) by redesignating subsection (e) as subsection (f); and
            (3) by inserting after subsection (d) the following new 
        subsection (e):
    ``(e)(1) The limitation in subsection (a) shall not apply to a 
rehabilitation program described in paragraph (2).
    ``(2) A rehabilitation program described in this paragraph is a 
rehabilitation program pursued by a veteran under section 3102(b) of 
this title.''.
    (c) Effective Date.--The amendments made by subsections (a) and (b) 
shall take effect on June 1, 2012, and shall apply with respect to 
rehabilitation programs beginning after such date.
    (d) Comptroller General Review.--Not later than two years after the 
date of the enactment of this Act, the Comptroller General of the 
United States shall--
            (1) conduct a review of the training and rehabilitation 
        under chapter 31 of title 38, United States Code; and
            (2) submit to Congress a report on the findings of the 
        Comptroller General with respect to the review and any 
        recommendations of the Comptroller General for improving such 
        training and rehabilitation.

SEC. 234. COLLABORATIVE VETERANS' TRAINING, MENTORING, AND PLACEMENT 
              PROGRAM.

    (a) In General.--Chapter 41 of title 38, United States Code, is 
amended by inserting after section 4104 the following new section:
``Sec. 4104A. Collaborative veterans' training, mentoring, and 
              placement program
    ``(a) Grants.--The Secretary shall award grants to eligible 
nonprofit organizations to provide training and mentoring for eligible 
veterans who seek employment. The Secretary shall award the grants to 
not more than three organizations, for periods of two years.
    ``(b) Collaboration and Facilitation.--The Secretary shall ensure 
that the recipients of the grants--
            ``(1) collaborate with--
                    ``(A) the appropriate disabled veterans' outreach 
                specialists (in carrying out the functions described in 
                section 4103A(a)) and the appropriate local veterans' 
                employment representatives (in carrying out the 
                functions described in section 4104); and
                    ``(B) the appropriate State boards and local boards 
                (as such terms are defined in section 101 of the 
                Workforce Investment Act of 1998 (29 U.S.C. 2801)) for 
                the areas to be served by recipients of the grants; and
            ``(2) based on the collaboration, facilitate the placement 
        of the veterans that complete the training in meaningful 
        employment that leads to economic self-sufficiency.
    ``(c) Application.--To be eligible to receive a grant under this 
section, a nonprofit organization shall submit an application to the 
Secretary at such time, in such manner, and containing such information 
as the Secretary may require. At a minimum, the information shall 
include--
            ``(1) information describing how the organization will--
                    ``(A) collaborate with disabled veterans' outreach 
                specialists and local veterans' employment 
                representatives and the appropriate State boards and 
                local boards (as such terms are defined in section 101 
                of the Workforce Investment Act of 1998 (29 U.S.C. 
                2801));
                    ``(B) based on the collaboration, provide training 
                that facilitates the placement described in subsection 
                (b)(2); and
                    ``(C) make available, for each veteran receiving 
                the training, a mentor to provide career advice to the 
                veteran and assist the veteran in preparing a resume 
                and developing job interviewing skills; and
            ``(2) an assurance that the organization will provide the 
        information necessary for the Secretary to prepare the reports 
        described in subsection (d).
    ``(d) Reports.--(1) Not later than six months after the date of the 
enactment of the VOW to Hire Heroes Act of 2011, the Secretary shall 
prepare and submit to the appropriate committees of Congress a report 
that describes the process for awarding grants under this section, the 
recipients of the grants, and the collaboration described in 
subsections (b) and (c).
    ``(2) Not later than 18 months after the date of enactment of the 
VOW to Hire Heroes Act of 2011, the Secretary shall--
            ``(A) conduct an assessment of the performance of the grant 
        recipients, disabled veterans' outreach specialists, and local 
        veterans' employment representatives in carrying out activities 
        under this section, which assessment shall include collecting 
        information on the number of--
                    ``(i) veterans who applied for training under this 
                section;
                    ``(ii) veterans who entered the training;
                    ``(iii) veterans who completed the training;
                    ``(iv) veterans who were placed in meaningful 
                employment under this section; and
                    ``(v) veterans who remained in such employment as 
                of the date of the assessment; and
            ``(B) submit to the appropriate committees of Congress a 
        report that includes--
                    ``(i) a description of how the grant recipients 
                used the funds made available under this section;
                    ``(ii) the results of the assessment conducted 
                under subparagraph (A); and
                    ``(iii) the recommendations of the Secretary as to 
                whether amounts should be appropriated to carry out 
                this section for fiscal years after 2013.
    ``(e) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $4,500,000 for the period 
consisting of fiscal years 2012 and 2013.
    ``(f) Definitions.--In this section--
            ``(1) the term `appropriate committees of Congress' means--
                    ``(A) the Committee on Veterans' Affairs and the 
                Committee on Health, Education, Labor, and Pension of 
                the Senate; and
                    ``(B) the Committee on Veterans' Affairs and the 
                Committee on Education and Workforce of the House of 
                Representatives; and
            ``(2) the term `nonprofit organization' means an 
        organization that is described in section 501(c)(3) of the 
        Internal Revenue Code of 1986 and that is exempt from taxation 
        under section 501(a) of such Code.''.
    (b) Conforming Amendment.--Section 4103A(a) of title 38, United 
States Code, is amended--
            (1) in paragraph (1), by inserting ``and facilitate 
        placements'' after ``intensive services''; and
            (2) by adding at the end the following:
    ``(3) In facilitating placement of a veteran under this program, a 
disabled veterans' outreach program specialist shall help to identify 
job opportunities that are appropriate for the veteran's employment 
goals and assist that veteran in developing a cover letter and resume 
that are targeted for those particular jobs.''.
    (c) Clerical Amendment.--The table of sections at the beginning of 
chapter 41 of such title is amended by inserting after the item 
relating to section 4104 the following new item:

``4104A. Collaborative veterans' training, mentoring, and placement 
                            program.''.

SEC. 235. APPOINTMENT OF HONORABLY DISCHARGED MEMBERS AND OTHER 
              EMPLOYMENT ASSISTANCE.

    (a) Appointments to Competitive Service Positions.--
            (1) In general.--Chapter 21 of title 5, United States Code, 
        is amended by inserting after section 2108 the following:
``Sec. 2108a. Treatment of certain individuals as veterans, disabled 
              veterans, and preference eligibles
    ``(a) Veteran.--
            ``(1) In general.--Except as provided under paragraph (3), 
        an individual shall be treated as a veteran defined under 
        section 2108(1) for purposes of making an appointment in the 
        competitive service, if the individual--
                    ``(A) meets the definition of a veteran under 
                section 2108(1), except for the requirement that the 
                individual has been discharged or released from active 
                duty in the armed forces under honorable conditions; 
                and
                    ``(B) submits a certification described under 
                paragraph (2) to the Federal officer making the 
                appointment.
            ``(2) Certification.--A certification referred to under 
        paragraph (1) is a certification that the individual is 
        expected to be discharged or released from active duty in the 
        armed forces under honorable conditions not later than 120 days 
        after the date of the submission of the certification.
    ``(b) Disabled Veteran.--
            ``(1) In general.--Except as provided under paragraph (3), 
        an individual shall be treated as a disabled veteran defined 
        under section 2108(2) for purposes of making an appointment in 
        the competitive service, if the individual--
                    ``(A) meets the definition of a disabled veteran 
                under section 2108(2), except for the requirement that 
                the individual has been separated from active duty in 
                the armed forces under honorable conditions; and
                    ``(B) submits a certification described under 
                paragraph (2) to the Federal officer making the 
                appointment.
            ``(2) Certification.--A certification referred to under 
        paragraph (1) is a certification that the individual is 
        expected to be separated from active duty in the armed forces 
        under honorable conditions not later than 120 days after the 
        date of the submission of the certification.
    ``(c) Preference Eligible.--Subsections (a) and (b) shall apply 
with respect to determining whether an individual is a preference 
eligible under section 2108(3) for purposes of making an appointment in 
the competitive service.''.
            (2) Technical and conforming amendments.--
                    (A) Definitions.--Section 2108 of title 5, United 
                States Code, is amended--
                            (i) in paragraph (1), in the matter 
                        following subparagraph (D), by inserting ``, 
                        except as provided under section 2108a,'' 
                        before ``who has been'';
                            (ii) in paragraph (2), by inserting 
                        ``(except as provided under section 2108a)'' 
                        before ``has been separated''; and
                            (iii) in paragraph (3), in the matter 
                        preceding subparagraph (A), by inserting ``or 
                        section 2108a(c)'' after ``paragraph (4) of 
                        this section''.
                    (B) Table of sections.--The table of sections for 
                chapter 21 of title 5, United States Code, is amended 
                by adding after the item relating to section 2108 the 
                following:

``2108a. Treatment of certain individuals as veterans, disabled 
                            veterans, and preference eligibles.''.
    (b) Employment Assistance: Other Federal Agencies.--
            (1) Definitions.--In this subsection--
                    (A) the term ``agency'' has the meaning given the 
                term ``Executive agency'' in section 105 of title 5, 
                United States Code; and
                    (B) the term ``veteran'' has the meaning given that 
                term in section 101 of title 38, United States Code.
            (2) Responsibilities of office of personnel management.--
        The Director of the Office of Personnel Management shall--
                    (A) designate agencies that shall establish a 
                program to provide employment assistance to members of 
                the Armed Forces who are being separated from active 
                duty in accordance with paragraph (3); and
                    (B) ensure that the programs established under this 
                subsection are coordinated with the Transition 
                Assistance Program (TAP) of the Department of Defense.
            (3) Elements of program.--The head of each agency 
        designated under paragraph (2)(A), in consultation with the 
        Director of the Office of Personnel Management, and acting 
        through the Veterans Employment Program Office of the agency 
        established under Executive Order 13518 (74 Fed. Reg. 58533; 
        relating to employment of veterans in the Federal Government), 
        or any successor thereto, shall--
                    (A) establish a program to provide employment 
                assistance to members of the Armed Forces who are being 
                separated from active duty, including assisting such 
                members in seeking employment with the agency;
                    (B) provide such members with information regarding 
                the program of the agency established under 
                subparagraph (A); and
                    (C) promote the recruiting, hiring, training and 
                development, and retention of such members and veterans 
                by the agency.
            (4) Other office.--If an agency designated under paragraph 
        (2)(A) does not have a Veterans Employment Program Office, the 
        head of the agency, in consultation with the Director of the 
        Office of Personnel Management, shall select an appropriate 
        office of the agency to carry out the responsibilities of the 
        agency under paragraph (3).

SEC. 236. DEPARTMENT OF DEFENSE PILOT PROGRAM ON WORK EXPERIENCE FOR 
              MEMBERS OF THE ARMED FORCES ON TERMINAL LEAVE.

    (a) In General.--The Secretary of Defense may establish a pilot 
program to assess the feasibility and advisability of providing to 
members of the Armed Forces on terminal leave work experience with 
civilian employees and contractors of the Department of Defense to 
facilitate the transition of the individuals from service in the Armed 
Forces to employment in the civilian labor market.
    (b) Duration.--The pilot program shall be carried out during the 
two-year period beginning on the date of the commencement of the pilot 
program.
    (c) Report.--Not later than 540 days after the date of the 
commencement of the pilot program, the Secretary shall submit to the 
Committee on Armed Services and the Committee on Veterans' Affairs of 
the Senate and the Committee on Armed Services and the Committee on 
Veterans' Affairs of the House of Representatives an interim report on 
the pilot program that includes the findings of the Secretary with 
respect to the feasibility and advisability of providing covered 
individuals with work experience as described in subsection (a).

SEC. 237. ENHANCEMENT OF DEMONSTRATION PROGRAM ON CREDENTIALING AND 
              LICENSING OF VETERANS.

    (a) In General.--Section 4114 of title 38, United States Code, is 
amended--
            (1) in subsection (a), by striking ``may'' and inserting 
        ``shall'';
            (2) in subsection (b)--
                    (A) in paragraph (1)--
                            (i) by striking ``Assistant Secretary 
                        shall'' and inserting ``Assistant Secretary for 
                        Veterans' Employment and Training shall, in 
                        consultation with the Assistant Secretary for 
                        Employment and Training,'';
                            (ii) by striking ``not less than 10 
                        military'' and inserting ``not more than five 
                        military''; and
                            (iii) by inserting ``for Veterans' 
                        Employment and Training'' after ``selected by 
                        the Assistant Secretary''; and
                    (B) in paragraph (2), by striking ``consult with 
                appropriate Federal, State, and industry officials to'' 
                and inserting ``enter into a contract with an 
                appropriate entity representing a coalition of State 
                governors to consult with appropriate Federal, State, 
                and industry officials and''; and
            (3) by striking subsections (d) through (h) and inserting 
        the following:
    ``(d) Period of Project.--The period during which the Assistant 
Secretary shall carry out the demonstration project under this section 
shall be the two-year period beginning on the date of the enactment of 
the VOW to Hire Heroes Act of 2011.''.
    (b) Study Comparing Costs Incurred by Secretary of Defense for 
Training for Military Occupational Specialties Without Credentialing or 
Licensing With Costs Incurred by Secretary of Veterans Affairs and 
Secretary of Labor in Providing Employment-related Assistance.--
            (1) In general.--Not later than 180 days after the 
        conclusion of the period described in subsection (d) of section 
        4114 of title 38, United States Code, as added by subsection 
        (a), the Assistant Secretary of Labor of Veterans' Employment 
        and Training shall, in consultation with the Secretary of 
        Defense and the Secretary of Veterans Affairs, complete a study 
        comparing the costs incurred by the Secretary of Defense in 
        training members of the Armed Forces for the military 
        occupational specialties selected by the Assistant Secretary of 
        Labor of Veterans' Employment and Training pursuant to the 
        demonstration project provided for in such section 4114, as 
        amended by subsection (a), with the costs incurred by the 
        Secretary of Veterans Affairs and the Secretary of Labor in 
        providing employment-related assistance to veterans who 
        previously held such military occupational specialties, 
        including--
                    (A) providing educational assistance under laws 
                administered by the Secretary of Veterans Affairs to 
                veterans to obtain credentialing and licensing for 
                civilian occupations that are similar to such military 
                occupational specialties;
                    (B) providing assistance to unemployed veterans 
                who, while serving in the Armed Forces, were trained in 
                a military occupational specialty; and
                    (C) providing vocational training or counseling to 
                veterans described in subparagraph (B).
            (2) Report.--
                    (A) In general.--Not later than 180 days after the 
                conclusion of the period described in subsection (d) of 
                section 4114 of title 38, United States Code, as added 
                by subsection (a), the Assistant Secretary of Labor of 
                Veterans' Employment and Training shall submit to 
                Congress a report on the study carried out under 
                paragraph (1).
                    (B) Elements.--The report required by subparagraph 
                (A) shall include the following:
                            (i) The findings of the Assistant Secretary 
                        with respect to the study required by paragraph 
                        (1).
                            (ii) A detailed description of the costs 
                        compared under the study required by paragraph 
                        (1).

SEC. 238. INCLUSION OF PERFORMANCE MEASURES IN ANNUAL REPORT ON VETERAN 
              JOB COUNSELING, TRAINING, AND PLACEMENT PROGRAMS OF THE 
              DEPARTMENT OF LABOR.

    Section 4107(c) of title 38, United States Code, is amended--
            (1) in paragraph (2), by striking ``clause (1)'' and 
        inserting ``paragraph (1)'';
            (2) in paragraph (5), by striking ``and'' at the end;
            (3) in paragraph (6), by striking the period and inserting 
        ``; and''; and
            (4) by adding at the end the following new paragraph:
            ``(7) performance measures for the provision of assistance 
        under this chapter, including--
                    ``(A) the percentage of participants in programs 
                under this chapter who find employment before the end 
                of the first 90-day period following their completion 
                of the program;
                    ``(B) the percentage of participants described in 
                subparagraph (A) who are employed during the first 180-
                day period following the period described in such 
                subparagraph;
                    ``(C) the median earnings of participants described 
                in subparagraph (A) during the period described in such 
                subparagraph;
                    ``(D) the median earnings of participants described 
                in subparagraph (B) during the period described in such 
                subparagraph; and
                    ``(E) the percentage of participants in programs 
                under this chapter who obtain a certificate, degree, 
                diploma, licensure, or industry-recognized credential 
                relating to the program in which they participated 
                under this chapter during the third 90-day period 
                following their completion of the program.''.

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

    Section 4215 of title 38, United States Code, is amended--
            (1) in subsection (a)(3), by adding at the end the 
        following: ``Such priority includes giving access to such 
        services to a covered person before a non-covered person or, if 
        resources are limited, giving access to such services to a 
        covered person instead of a non-covered person.''; and
            (2) by amending subsection (d) to read as follows:
    ``(d) Addition to Annual Report.--(1) In the annual report required 
under section 4107(c) of this title for the program year beginning in 
2003 and each subsequent program year, the Secretary of Labor shall 
evaluate whether covered persons are receiving priority of service and 
are being fully served by qualified job training programs. Such 
evaluation shall include--
            ``(A) an analysis of the implementation of providing such 
        priority at the local level;
            ``(B) whether the representation of veterans in such 
        programs is in proportion to the incidence of representation of 
        veterans in the labor market, including within groups that the 
        Secretary may designate for priority under such programs, if 
        any; and
            ``(C) performance measures, as determined by the Secretary, 
        to determine whether veterans are receiving priority of service 
        and are being fully served by qualified job training programs.
    ``(2) The Secretary may not use the proportion of representation of 
veterans described in subparagraph (B) of paragraph (1) as the basis 
for determining under such paragraph whether veterans are receiving 
priority of service and are being fully served by qualified job 
training programs.''.

SEC. 240. EVALUATION OF INDIVIDUALS RECEIVING TRAINING AT THE NATIONAL 
              VETERANS' EMPLOYMENT AND TRAINING SERVICES INSTITUTE.

    (a) In General.--Section 4109 of title 38, United States Code, is 
amended by adding at the end the following new subsection:
    ``(d)(1) The Secretary shall require that each disabled veterans' 
outreach program specialist and local veterans' employment 
representative who receives training provided by the Institute, or its 
successor, is given a final examination to evaluate the specialist's or 
representative's performance in receiving such training.
    ``(2) The results of such final examination shall be provided to 
the entity that sponsored the specialist or representative who received 
the training.''.
    (b) Effective Date.--Subsection (d) of section 4109 of title 38, 
United States Code, as added by subsection (a), shall apply with 
respect to training provided by the National Veterans' Employment and 
Training Services Institute that begins on or after the date that is 
180 days after the date of the enactment of this Act.

SEC. 241. REQUIREMENTS FOR FULL-TIME DISABLED VETERANS' OUTREACH 
              PROGRAM SPECIALISTS AND LOCAL VETERANS' EMPLOYMENT 
              REPRESENTATIVES.

    (a) Disabled Veterans' Outreach Program Specialists.--Section 4103A 
of title 38, United States Code, is amended by adding at the end the 
following new subsection:
    ``(d) Additional Requirement for Full-time Employees.--(1) A full-
time disabled veterans' outreach program specialist shall perform only 
duties related to meeting the employment needs of eligible veterans, as 
described in subsection (a), and shall not perform other non-veteran-
related duties that detract from the specialist's ability to perform 
the specialist's duties related to meeting the employment needs of 
eligible veterans.
    ``(2) The Secretary shall conduct regular audits to ensure 
compliance with paragraph (1). If, on the basis of such an audit, the 
Secretary determines that a State is not in compliance with paragraph 
(1), the Secretary may reduce the amount of a grant made to the State 
under section 4102A(b)(5) of this title.''.
    (b) Local Veterans' Employment Representatives.--Section 4104 of 
such title is amended--
            (1) by redesignating subsection (e) as subsection (f); and
            (2) by inserting after subsection (d) the following new 
        subsection (e):
    ``(e) Additional Requirements for Full-time Employees.--(1) A full-
time local veterans' employment representative shall perform only 
duties related to the employment, training, and placement services 
under this chapter, and shall not perform other non-veteran-related 
duties that detract from the representative's ability to perform the 
representative's duties related to employment, training, and placement 
services under this chapter.
    ``(2) The Secretary shall conduct regular audits to ensure 
compliance with paragraph (1). If, on the basis of such an audit, the 
Secretary determines that a State is not in compliance with paragraph 
(1), the Secretary may reduce the amount of a grant made to the State 
under section 4102A(b)(5) of this title.''.
    (c) Consolidation.--Section 4102A of such title is amended by 
adding at the end the following new subsection:
    ``(h) Consolidation of Disabled Veterans' Outreach Program 
Specialists and Veterans' Employment Representatives.--The Secretary 
may allow the Governor of a State receiving funds under subsection 
(b)(5) to support specialists and representatives as described in such 
subsection to consolidate the functions of such specialists and 
representatives if--
            ``(1) the Governor determines, and the Secretary concurs, 
        that such consolidation--
                    ``(A) promotes a more efficient administration of 
                services to veterans with a particular emphasis on 
                services to disabled veterans; and
                    ``(B) does not hinder the provision of services to 
                veterans and employers; and
            ``(2) the Governor submits to the Secretary a proposal 
        therefor at such time, in such manner, and containing such 
        information as the Secretary may require.''.

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

SEC. 251. CLARIFICATION OF BENEFITS OF EMPLOYMENT COVERED UNDER USERRA.

    Section 4303(2) of title 38, United States Code, is amended by 
inserting ``the terms, conditions, or privileges of employment, 
including'' after ``means''.

                       Subtitle E--Other Matters

SEC. 261. RETURNING HEROES AND WOUNDED WARRIORS WORK OPPORTUNITY TAX 
              CREDITS.

    (a) In General.--Paragraph (3) of section 51(b) of the Internal 
Revenue Code of 1986 is amended by striking ``($12,000 per year in the 
case of any individual who is a qualified veteran by reason of 
subsection (d)(3)(A)(ii))'' and inserting ``($12,000 per year in the 
case of any individual who is a qualified veteran by reason of 
subsection (d)(3)(A)(ii)(I), $14,000 per year in the case of any 
individual who is a qualified veteran by reason of subsection 
(d)(3)(A)(iv), and $24,000 per year in the case of any individual who 
is a qualified veteran by reason of subsection (d)(3)(A)(ii)(II))''.
    (b) Returning Heroes Tax Credits.--Subparagraph (A) of section 
51(d)(3) of the Internal Revenue Code of 1986 is amended--
            (1) by striking ``or'' at the end of clause (i),
            (2) by striking the period at the end of clause (ii)(II), 
        and
            (3) by adding at the end the following new clauses:
                            ``(iii) having aggregate periods of 
                        unemployment during the 1-year period ending on 
                        the hiring date which equal or exceed 4 weeks 
                        (but less than 6 months), or
                            ``(iv) having aggregate periods of 
                        unemployment during the 1-year period ending on 
                        the hiring date which equal or exceed 6 
                        months.''.
    (c) Simplified Certification.--Paragraph (13) of section 51(d) of 
the Internal Revenue Code of 1986 is amended by adding at the end the 
following new subparagraph:
                    ``(D) Credit for unemployed veterans.--
                            ``(i) In general.--Notwithstanding 
                        subparagraph (A), for purposes of paragraph 
                        (3)(A)--
                                    ``(I) a veteran will be treated as 
                                certified by the designated local 
                                agency as having aggregate periods of 
                                unemployment meeting the requirements 
                                of clause (ii)(II) or (iv) of such 
                                paragraph (whichever is applicable) if 
                                such veteran is certified by such 
                                agency as being in receipt of 
                                unemployment compensation under State 
                                or Federal law for not less than 6 
                                months during the 1-year period ending 
                                on the hiring date, and
                                    ``(II) a veteran will be treated as 
                                certified by the designated local 
                                agency as having aggregate periods of 
                                unemployment meeting the requirements 
                                of clause (iii) of such paragraph if 
                                such veteran is certified by such 
                                agency as being in receipt of 
                                unemployment compensation under State 
                                or Federal law for not less than 4 
                                weeks (but less than 6 months) during 
                                the 1-year period ending on the hiring 
                                date.
                            ``(ii) Regulatory authority.--The Secretary 
                        may provide alternative methods for 
                        certification of a veteran as a qualified 
                        veteran described in clause (ii)(II), (iii), or 
                        (iv) of paragraph (3)(A), at the Secretary's 
                        discretion.''.
    (d) Extension of Credit.--Subparagraph (B) of section 51(c)(4) of 
the Internal Revenue Code of 1986 is amended to read as follows:
                    ``(B) after--
                            ``(i) December 31, 2012, in the case of a 
                        qualified veteran, and
                            ``(ii) December 31, 2011, in the case of 
                        any other individual.''.
    (e) Credit Made Available to Tax-exempt Organizations in Certain 
Circumstances.--
            (1) In general.--Subsection (c) of section 52 of the 
        Internal Revenue Code of 1986 is amended--
                    (A) by inserting ``(1) In general.--'' before ``No 
                credit'', and
                    (B) by adding at the end the following new 
                paragraph:
    ``(2) Credit Made Available to Qualified Tax-exempt Organizations 
Employing Qualified Veterans.--For credit against payroll taxes for 
employment of qualified veterans by qualified tax-exempt organizations, 
see section 3111(e).''.
            (2) Credit allowable.--Section 3111 of such Code is amended 
        by adding at the end the following new subsection:
    ``(e) Credit for Employment of Qualified Veterans.--
            ``(1) In general.--If a qualified tax-exempt organization 
        hires a qualified veteran with respect to whom a credit would 
        be allowable under section 38 by reason of section 51 if the 
        organization were not a qualified tax-exempt organization, then 
        there shall be allowed as a credit against the tax imposed by 
        subsection (a) on wages paid with respect to employment of all 
        employees of the organization during the applicable period an 
        amount equal to the credit determined under section 51 (after 
        application of the modifications under paragraph (3)) with 
        respect to wages paid to such qualified veteran during such 
        period.
            ``(2) Overall limitation.--The aggregate amount allowed as 
        a credit under this subsection for all qualified veterans for 
        any period with respect to which tax is imposed under 
        subsection (a) shall not exceed the amount of the tax imposed 
        by subsection (a) on wages paid with respect to employment of 
        all employees of the organization during such period.
            ``(3) Modifications.--For purposes of paragraph (1), 
        section 51 shall be applied--
                    ``(A) by substituting `26 percent' for `40 percent' 
                in subsection (a) thereof,
                    ``(B) by substituting `16.25 percent' for `25 
                percent' in subsection (i)(3)(A) thereof, and
                    ``(C) by only taking into account wages paid to a 
                qualified veteran for services in furtherance of the 
                activities related to the purpose or function 
                constituting the basis of the organization's exemption 
                under section 501.
            ``(4) Applicable period.--The term `applicable period' 
        means, with respect to any qualified veteran, the 1-year period 
        beginning with the day such qualified veteran begins work for 
        the organization.
            ``(5) Definitions.--For purposes of this subsection--
                    ``(A) the term `qualified tax-exempt organization' 
                means an employer that is an organization described in 
                section 501(c) and exempt from taxation under section 
                501(a), and
                    ``(B) the term `qualified veteran' has meaning 
                given such term by section 51(d)(3).''.
            (3) Transfers to federal old-age and survivors insurance 
        trust fund.--There are hereby appropriated to the Federal Old-
        Age and Survivors Trust Fund and the Federal Disability 
        Insurance Trust Fund established under section 201 of the 
        Social Security Act (42 U.S.C. 401) amounts equal to the 
        reduction in revenues to the Treasury by reason of the 
        amendments made by paragraphs (1) and (2). Amounts appropriated 
        by the preceding sentence shall be transferred from the general 
        fund at such times and in such manner as to replicate to the 
        extent possible the transfers which would have occurred to such 
        Trust Fund had such amendments not been enacted.
    (f) Treatment of Possessions.--
            (1) Payments to possessions.--
                    (A) Mirror code possessions.--The Secretary of the 
                Treasury shall pay to each possession of the United 
                States with a mirror code tax system amounts equal to 
                the loss to that possession by reason of the amendments 
                made by this section. Such amounts shall be determined 
                by the Secretary of the Treasury based on information 
                provided by the government of the respective possession 
                of the United States.
                    (B) Other possessions.--The Secretary of the 
                Treasury shall pay to each possession of the United 
                States which does not have a mirror code tax system the 
                amount estimated by the Secretary of the Treasury as 
                being equal to the loss to that possession that would 
                have occurred by reason of the amendments made by this 
                section if a mirror code tax system had been in effect 
                in such possession. The preceding sentence shall not 
                apply with respect to any possession of the United 
                States unless such possession establishes to the 
                satisfaction of the Secretary that the possession has 
                implemented (or, at the discretion of the Secretary, 
                will implement) an income tax benefit which is 
                substantially equivalent to the income tax credit in 
                effect after the amendments made by this section.
            (2) Coordination with credit allowed against united states 
        income taxes.--The credit allowed against United States income 
        taxes for any taxable year under the amendments made by this 
        section to section 51 of the Internal Revenue Code of 1986 to 
        any person with respect to any qualified veteran shall be 
        reduced by the amount of any credit (or other tax benefit 
        described in paragraph (1)(B)) allowed to such person against 
        income taxes imposed by the possession of the United States by 
        reason of this subsection with respect to such qualified 
        veteran for such taxable year.
            (3) Definitions and special rules.--
                    (A) Possession of the united states.--For purposes 
                of this subsection, the term ``possession of the United 
                States'' includes American Samoa, Guam, the 
                Commonwealth of the Northern Mariana Islands, the 
                Commonwealth of Puerto Rico, and the United States 
                Virgin Islands.
                    (B) Mirror code tax system.--For purposes of this 
                subsection, the term ``mirror code tax system'' means, 
                with respect to any possession of the United States, 
                the income tax system of such possession if the income 
                tax liability of the residents of such possession under 
                such system is determined by reference to the income 
                tax laws of the United States as if such possession 
                were the United States.
                    (C) Treatment of payments.--For purposes of section 
                1324(b)(2) of title 31, United States Code, the 
                payments under this subsection shall be treated in the 
                same manner as a refund due from credit provisions 
                described in such section.
    (g) Effective Date.--The amendments made by this section shall 
apply to individuals who begin work for the employer after the date of 
the enactment of this Act.

SEC. 262. EXTENSION OF REDUCED PENSION FOR CERTAIN VETERANS COVERED BY 
              MEDICAID PLANS FOR SERVICES FURNISHED BY NURSING 
              FACILITIES.

    Section 5503(d)(7) of title 38, United States Code, is amended by 
striking ``May 31, 2015'' and inserting ``September 30, 2016''.

SEC. 263. REIMBURSEMENT RATE FOR AMBULANCE SERVICES.

    Section 111(b)(3) of title 38, United States Code, is amended by 
adding at the end the following new subparagraph:
    ``(C) In the case of transportation of a person under subparagraph 
(B) by ambulance, the Secretary may pay the provider of the 
transportation the lesser of the actual charge for the transportation 
or the amount determined by the fee schedule established under section 
1834(l) of the Social Security Act (42 U.S.C. 1395(l)) unless the 
Secretary has entered into a contract for that transportation with the 
provider.''.

SEC. 264. EXTENSION OF AUTHORITY FOR SECRETARY OF VETERANS AFFAIRS TO 
              OBTAIN INFORMATION FROM SECRETARY OF TREASURY AND 
              COMMISSIONER OF SOCIAL SECURITY FOR INCOME VERIFICATION 
              PURPOSES.

    Section 5317(g) of title 38, United States Code, is amended by 
striking ``September 30, 2011'' and inserting ``September 30, 2016''.

SEC. 265. MODIFICATION OF LOAN GUARANTY FEE FOR CERTAIN SUBSEQUENT 
              LOANS.

    (a) In General.--Section 3729(b)(2) of title 38, United States 
Code, is amended--
            (1) in subparagraph (A)--
                    (A) in clause (iii), by striking ``November 18, 
                2011'' and inserting ``October 1, 2016''; and
                    (B) in clause (iv), by striking ``November 18, 
                2011'' and inserting ``October 1, 2016'';
            (2) in subparagraph (B)--
                    (A) in clause (i), by striking ``November 18, 
                2011'' and inserting ``October 1, 2016'';
                    (B) by striking clauses (ii) and (iii);
                    (C) by redesignating clause (iv) as clause (ii); 
                and
                    (D) in clause (ii), as redesignated by subparagraph 
                (C), by striking ``October 1, 2013'' and inserting 
                ``October 1, 2016'';
            (3) in subparagraph (C)--
                    (A) in clause (i), by striking ``November 18, 
                2011'' and inserting ``October 1, 2016''; and
                    (B) in clause (ii), by striking ``November 18, 
                2011'' and inserting ``October 1, 2016''; and
            (4) in subparagraph (D)--
                    (A) in clause (i), by striking ``November 18, 
                2011'' and inserting ``October 1, 2016''; and
                    (B) in clause (ii), by striking ``November 18, 
                2011'' and inserting ``October 1, 2016''.
    (b) Effective Date.--The amendments made by subsection (a) shall 
take effect on the later of--
            (1) November 18, 2011; or
            (2) the date of the enactment of this Act.

        TITLE III--OTHER PROVISIONS RELATING TO FEDERAL VENDORS

SEC. 301. ONE HUNDRED PERCENT LEVY FOR PAYMENTS TO FEDERAL VENDORS 
              RELATING TO PROPERTY.

    (a) In General.--Section 6331(h)(3) of the Internal Revenue Code of 
1986 is amended by striking ``goods or services'' and inserting 
``property, goods, or services''.
    (b) Effective Date.--The amendment made by this section shall apply 
to levies issued after the date of the enactment of this Act.

SEC. 302. STUDY AND REPORT ON REDUCING THE AMOUNT OF THE TAX GAP OWED 
              BY FEDERAL CONTRACTORS.

    (a) Study.--
            (1) In general.--The Secretary of the Treasury, or the 
        Secretary's delegate, in consultation with the Director of the 
        Office of Management and Budget and the heads of such other 
        Federal agencies as the Secretary determines appropriate, shall 
        conduct a study on ways to reduce the amount of Federal tax 
        owed but not paid by persons submitting bids or proposals for 
        the procurement of property or services by the Federal 
        government.
            (2) Matters studied.--The study conducted under paragraph 
        (1) shall include the following matters:
                    (A) An estimate of the amount of delinquent taxes 
                owed by Federal contractors.
                    (B) The extent to which the requirement that 
                persons submitting bids or proposals certify whether 
                such persons have delinquent tax debts has--
                            (i) improved tax compliance; and
                            (ii) been a factor in Federal agency 
                        decisions not to enter into or renew contracts 
                        with such contractors.
                    (C) In cases in which Federal agencies continue to 
                contract with persons who report having delinquent tax 
                debt, the factors taken into consideration in awarding 
                such contracts.
                    (D) The degree of the success of the Federal lien 
                and levy system in recouping delinquent Federal taxes 
                from Federal contractors.
                    (E) The number of persons who have been suspended 
                or debarred because of a delinquent tax debt over the 
                past 3 years.
                    (F) An estimate of the extent to which the 
                subcontractors under Federal contracts have delinquent 
                tax debt.
                    (G) The Federal agencies which have most frequently 
                awarded contracts to persons notwithstanding any 
                certification by such person that the person has 
                delinquent tax debt.
                    (H) Recommendations on ways to better identify 
                Federal contractors with delinquent tax debts.
    (b) Report.--Not later than 12 months after the date of the 
enactment of this Act, the Secretary of the Treasury shall submit to 
the Committee on Ways and Means of the House of Representatives, the 
Committee on Finance of the Senate, the Committee on Oversight and 
Government Reform of the House of Representatives, and the Committee on 
Homeland Security and Government Affairs of the Senate, a report on the 
study conducted under subsection (a), together with any legislative 
recommendations.

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

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

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

                       TITLE V--BUDGETARY EFFECTS

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

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

            Attest:

                                                             Secretary.
112th CONGRESS

  1st Session

                                H.R. 674

_______________________________________________________________________

                               AMENDMENT