[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[H.R. 674 Enrolled Bill (ENR)]
H.R.674
One Hundred Twelfth Congress
of the
United States of America
AT THE FIRST SESSION
Begun and held at the City of Washington on Wednesday,
the fifth day of January, two thousand and eleven
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.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. TABLE OF CONTENTS.
The table of contents for this Act is as follows:
Sec. 1. Table of Contents.
TITLE I--THREE PERCENT WITHHOLDING REPEAL AND JOB CREATION ACT
Sec. 101. Short title.
Sec. 102. Repeal of imposition of 3 percent withholding on certain
payments made to vendors by government entities.
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 I--THREE PERCENT WITHHOLDING REPEAL AND JOB CREATION ACT
SEC. 101. SHORT TITLE.
This title may be cited as the ``3% Withholding Repeal and Job
Creation Act''.
SEC. 102. REPEAL OF IMPOSITION OF 3 PERCENT WITHHOLDING ON CERTAIN
PAYMENTS MADE TO VENDORS BY GOVERNMENT ENTITIES.
(a) In General.--Section 3402 of the Internal Revenue Code of 1986
is amended by striking subsection (t).
(b) Effective Date.--The amendment made by this section shall apply
to payments made after December 31, 2011.
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.
Speaker of the House of Representatives.
Vice President of the United States and
President of the Senate.