Text: H.R.908 — 102nd Congress (1991-1992)All Information (Except Text)

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HR 908 IH
102d CONGRESS
1st Session
 H. R. 908
To amend title 38, United States Code, and other provisions of law to provide
improved benefits and services for military personnel who serve during the
Persian Gulf War, including particularly benefits and services for members
of the National Guard and Reserve components, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
February 6, 1991
Mr. MONTGOMERY introduced the following bill; which was referred jointly
to the Committees on Veterans' Affairs, Armed Services, Ways and Means,
Small Business, and Education and Labor
A BILL
To amend title 38, United States Code, and other provisions of law to provide
improved benefits and services for military personnel who serve during the
Persian Gulf War, including particularly benefits and services for members
of the National Guard and Reserve components, 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. SHORT TITLE.
  This Act may be cited as the `Persian Gulf War Veterans Benefits Act
  of 1991'.
SEC. 2. DEFINITION.
  For purposes of this Act, the  term `Persian Gulf War' means the period
  beginning on August 2, 1990, and ending on the date thereafter prescribed
  by Presidential proclamation or by law.
TITLE I--GENERAL VETERANS BENEFITS
SEC. 101. INCLUSION OF PERSIAN GULF WAR WITHIN DEFINITION OF `PERIOD OF WAR'
FOR PURPOSES OF VETERANS BENEFITS.
  Section 101 of title 38, United States Code, is amended--
  (1) in paragraph (11), by inserting `the Persian Gulf War,' after `the
  Vietnam era,'; and
  (2) by adding at the end the following new paragraph:
  `(33) The term `Persian Gulf War' means the period beginning on August
  2, 1990, and ending on the date thereafter prescribed by Presidential
  proclamation or by law.'.
SEC. 102. VETERANS' HEALTH BENEFITS.
  (a) AUTHORITY TO OBTAIN STANDBY INPATIENT SERVICES- Section 5011A(b)(2)(B)
  of title 38, United States Code, is amended--
  (1) by redesignating clauses (i) and (ii) as clauses (ii) and (iii); and
  (2) by inserting before clause (ii), as so redesignated, the following:
  `(i) is described in section 610(a)(1) of this title;'.
  (b) COUNSELING- (1) Section 612B of such title is amended to read as follows:
`Sec. 612B. Counseling for former prisoners of war and for veterans of combat
theaters of operations
  `The Secretary may furnish counseling services in any facility of the
  Department--
  `(1) to any veteran who is a former prisoner of war to assist the veteran
  in overcoming the psychological effects of the veteran's detention or
  internment as a prisoner of war; and
  `(2) to any veteran who while in the active military, naval, or air
  service served in a theater of combat operations (as defined by the
  Secretary of Defense) after August 2, 1990, during a period during which
  hostilities occurred in that theater to assist the veteran in overcoming
  any psychological problems of the veteran associated with such service.'.
  (2) The item relating to such section in the table of sections at the
  beginning of such chapter is amended to read as follows:
`612B. Counseling for former prisoners of war and for veterans of combat
theaters of operations.'.
  (c) PERIOD OF SERVICE FOR DENTAL BENEFITS- Section 612(b) of such title
  is amended by inserting `or, in the case of a veteran who served on active
  duty during the Persian Gulf War, 90 days' after `180 days' in paragraphs
  (1)(B)(ii) and (2).
  (d) PRESUMPTION RELATING TO PSYCHOSIS- Section 602 of such title is amended--
  (1) by striking out `or the Vietnam era' and inserting in lieu thereof
  `the Vietnam era, or the Persian Gulf War';
  (2) by striking out `or' after `Korean conflict,'; and
  (3) by inserting `or before the end of the two-year period beginning on
  the last day of the Persian Gulf War, in the case of a veteran of the
  Persian Gulf War,' after `Vietnam era veteran,'.
  (e) COVERAGE OF CERTAIN PRESCRIPTION DRUG BENEFITS- Section 612(h)
  of such title is amended by striking out `the Mexican border period'
  and all that follows through `Vietnam era' and inserting in lieu thereof
  `a period of war'.
  (f) EFFECTIVE DATE- The amendments made by this section shall take effect
  as of August 2, 1990.
SEC. 103. DEPENDENCY AND INDEMNITY COMPENSATION.
  (a) SURVIVING SPOUSE BENEFITS BASED ON AGE- Section 411(a) of title 38,
  United States Code, is amended by striking out the matter preceding the
  table and inserting in lieu thereof the following:
  `(a)(1) Dependency and indemnity compensation shall be paid to a surviving
  spouse at monthly rates set forth in the following table:
`Age at time of death
--Monthly rate
Under 35
--$750
35-49
--700
50-64
--650
65 and over
--600
  `(2) In the case of dependency and indemnity compensation paid to a surviving
  spouse that is predicated upon the death of a veteran during the period
  beginning on January 1, 1957, and ending on the last day of the month in
  which the Persian Gulf War ends (as prescribed by Presidential proclamation
  or by law) the monthly rate of such compensation shall be the amount,
  based on the pay grade of such veteran, set forth in the following table,
  if the amount is greater than the amount determined with respect to that
  veteran under paragraph (1) of this subsection:'.
  (b) EFFECTIVE DATE- The amendment made by subsection (a) shall take effect
  as of the first day of the first month beginning after the date of the
  enactment of this Act.
SEC. 104. INCREASE IN LIFE INSURANCE BENEFITS.
  (a) SERVICEMEN'S GROUP LIFE INSURANCE- Section 767 of title 38, United
  States Code, is amended--
  (1) in subsections (a) and (c), by striking out `$50,000' each place it
  appears and inserting in lieu thereof `$75,000'; and
  (2) in subsection (d)--
  (A) by striking out `January 1, 1986' each place it appears and inserting
  in lieu thereof `August 2, 1990'; and
  (B) by striking out `$50,000' and inserting in lieu thereof `$75,000'.
  (b) VETERANS' GROUP LIFE INSURANCE- Section 777(a) of such title is amended
  by striking out `$50,000' each place it appears and inserting in lieu
  thereof `$75,000'.
  (c) EFFECTIVE DATE- The amendments made by subsection (a) shall take effect
  as of August 2, 1990.
TITLE II--VETERANS EDUCATION BENEFITS
SEC. 201. INCREASE IN THE AMOUNT OF MONTGOMERY GI BILL EDUCATIONAL ASSISTANCE
PAYMENTS.
  (a) AMOUNT OF BENEFIT PAYMENTS UNDER CHAPTER 30- Section 1415 of title 38,
  United States Code, is amended--
  (1) in subsection (a)(1), by striking out `$300' and inserting in lieu
  thereof `$500';
  (2) in subsection (b)(1), by striking out `$250' and inserting in lieu
  thereof `$350'; and
  (3) by adding at the end the following new subsection:
  `(f) Each of the rates established by or pursuant to subsection (a) or
  (b) of this section shall be increased on April 1, 1992, and on April 1
  of each year thereafter, by a percentage that is equal to the percentage
  of the increase in the Consumer Price Index (all items, United States city
  average) published by the Bureau of Labor Statistics for the calendar year
  ending before the April 1 on which such rate is to be increased.'.
  (b) AMOUNT OF BENEFIT PAYMENTS UNDER SELECTED RESERVE PROGRAM- Section
  2131(b) of title 10, United States Code, is amended--
  (1) by striking out `(b) Except' and inserting in lieu thereof `(b)(1)
  Except';
  (2) by redesignating paragraphs (1), (2), (3), and (4), as subparagraphs
  (A), (B), (C), and (D), respectively;
  (3) in subparagraph (A), as so redesignated, by striking out `$140' and
  inserting in lieu thereof `$250';
  (4) in subparagraph (B), as so redesignated, by striking out `$105' and
  inserting in lieu thereof `$187';
  (5) in subparagraph (C), as so redesignated, by striking out `$70' and
  inserting in lieu thereof `$125'; and
  (6) and by adding at the end the following new paragraph:
  `(2) Each of the rates in subparagraphs (A) through (D) of paragraph (1)
  shall be increased on April 1, 1992, and on April 1 of each year thereafter,
  by a percentage that is equal to the percentage of the increase in the
  Consumer Price Index  (all items, United States city average) published
  by the Bureau of Labor Statistics for the calendar year ending before the
  April 1 on which such rate is to be increased.'.
  (c) EFFECTIVE DATE- The amendments made by this section shall become
  effective with respect to payments of educational assistance made on or
  after April 1, 1991.
SEC. 202. ELIGIBILITY AND OTHER EDUCATIONAL BENEFITS UNDER SELECTED RESERVE
PROGRAM.
  (a) ELIGIBILITY- Section 2131(a) of title 10, United States Code,  is
  amended--
  (1) by striking out `(a) To' and inserting in lieu thereof `(a)(1) To'; and
  (2) by adding at the end the following new paragraph:
  `(2)(A) The Secretary of each military department and the Secretary of
  Transportation, with respect to the Coast Guard when it is not operating
  as a service in the Navy, shall provide educational assistance to members
  of the Selected Reserve of the Ready Reserve of the armed forces under
  the jurisdiction of the Secretary concerned who were ordered to active
  duty under 672, 673, 673b, 674, or 675 on or after August 2, 1990, and
  who served more than 180 days of continuous service on active duty in the
  Persian Gulf War and were discharged or released from such service under
  conditions other than dishonorable.
  `(B) For purposes of this chapter, the term `Persian Gulf War' means the
  period beginning on August 2, 1990, and ending on the date thereafter
  prescribed by Presidential proclamation or by law.'.
  (b) USE OF EDUCATIONAL ASSISTANCE- Section 2131(c)(1) of such title is
  amended by striking out `other than' and all that follows through the
  period and inserting in lieu thereof a period.
SEC. 203. DELIMITING DATE.
  Section 2133(b) of title 10, United States Code, is amended by adding at
  the end the following:
  `(4) Any period of service on active duty served by a person ordered to such
  active duty under section 672, 673, 673b, 674, or 675 in connection with
  the Persian Gulf War shall not be considered, for purposes of subsection
  (a), to be--
  `(A) a part of the 10-year period referred to in clause (1) of such
  subsection; or
  `(B) a separation from the Selected Reserve referred to in clause (2)
  of such subsection.'.
SEC. 204. RESTORATION OF EDUCATIONAL ASSISTANCE.
  (a) CHAPTER 30 PROGRAM- Section 1413 of title 38, United States Code,
  is amended by adding at the end the following new subsection:
  `(f)(1) Notwithstanding any other provision of this chapter or chapter 36
  of this title, any payment of an educational assistance allowance described
  in paragrap (2) of this subsection shall not--
  `(A) be charged against the entitlement of any individual under this
  chapter; or
  `(B) be counted toward the aggregate period for which section 1795 of this
  title limits an individual's receipt of assistance.
  `(2) The payment of the educational assistance allowance referred to in
  paragraph (1) of this subsection is the payment of such an allowance to
  an individual for pursuit of a course or courses under this chapter with
  respect to the period described in paragraph (3) of this subsection if
  the Secretary finds that the individual--
  `(A) in the case of a member of the Selected Reserve, had to discontinue
  such course pursuit as a result of being ordered, in connection with the
  Persian Gulf War, to serve on active duty under section 672, 673, 673b,
  or 675 of title 10; or
  `(B) in the case of a person serving on active duty, had to discontinue such
  course pursuit as a result of being ordered, in connection with such War,
  to a new duty location or assignment or to perform an increased amount of
  work; and
  `(C) failed to receive credit or training time toward completion of the
  individual's approved educational, professional, or vocational objective
  as a result of having to discontinue, as described in subparagraph (A) or
  (B) of this paragraph, his or her course pursuit.
  `(3) The period of course pursuit referred to in paragraph (2) of this
  subsection is the period beginning on the effective date of the award of an
  educational assistance allowance under this chapter to the individual for
  the period of enrollment during which the individual discontinued course
  pursuit as described in paragraph (2) of this subsection and ending on
  the date of such discontinuance; except that in no case may such period
  exceed the portion of the period of enrollment with respect to which the
  individual failed to receive credit or training time, as determined under
  paragraph (2)(C) of this subsection.'.
  (b) CHAPTER 32 PROGRAM- (1) Section 1631(a) of such title is amended by
  adding at the end the following new paragraph:
  `(5)(A) Notwithstanding any other provision of this chapter or chapter 36
  of this title, any payment of an educational assistance allowance described
  in subparagraph (B) of this paragraph--
  `(i) shall not be charged against the entitlement of any eligible veteran
  under this chapter; and
  `(ii) shall not be counted toward the aggregate period for which section
  1795 of this title limits an individual's receipt of assistance.
  `(B) The payment of an educational assistance allowance referred to in
  subparagraph (A) of this paragraph is any payment of a monthly benefit
  under this chapter to an eligible veteran for pursuit of a course or
  courses under this chapter during the period described in subparagraph
  (C) of this subsection if the Secretary finds that the eligible veteran--
  `(i) in the case of a member of the Selected Reserve, had to discontinue
  such course pursuit as a result of being ordered, in connection with the
  Persian Gulf War, to serve on active duty under section 672, 673, 673b,
  or 675 of title 10; or
  `(ii) in the case of a person serving on active duty, had to discontinue
  such course pursuit as a result of being ordered, in connection with such
  War, to a new duty location or assignment or to perform an increased amount
  of work; and
  `(iii) failed to receive credit or training time toward completion of the
  individual's approved educational, professional, or vocational objective
  as a result of having to discontinue, as described in clause (i) or (ii)
  of this subparagraph, his or her course pursuit.
  `(C) The period of course pursuit referred to in subparagraph (B) of this
  paragraph is the period beginning on the effective date of the award of an
  educational assistance allowance under this chapter to the veteran for the
  period of enrollment during which the veteran discontinued course pursuit
  as described in subparagraph (B) of this paragraph and ending on the date
  of such discontinuance; except that in no case may such period exceed the
  portion of the period of enrollment with respect to which the individual
  failed to receive credit or training time, as determined under subparagraph
  (B)(iii) of this paragraph.
  `(D) The amount in the fund for each eligible veteran who received a
  payment of an educational assistance allowance described in subparagraph
  (B) of this paragraph shall be restored to the amount that would have
  been in the fund for the veteran if the payment had not been made. For
  purposes of carrying out the previous sentence, the Secretary of Defense
  shall deposit into the fund, on behalf of each such veteran, an amount
  equal to the entire amount of the payment made to the veteran.
  `(E) The formula provided in paragraph (2) of this subsection shall be
  implemented as if--
  `(i) the payment made to the fund by the Secretary of Defense under
  subparagraph (D) of this paragraph; and
  `(ii) any payment described in subparagraph (B) of this paragraph that
  was paid out of the fund,
had not been made or paid.'.
  (2) Section 1631(a)(2) of such title is amended by inserting `in paragraph
  (5)(E) of this subsection and' after `Except as provided'.
  (c) CHAPTER 35 PROGRAM- Section 1711(a) of such title is amended--
  (1) by striking out `Each' and inserting in lieu thereof `(1) Each'; and
  (2) by adding at the end the following new paragraph:
  `(2)(A) Notwithstanding any other provision of this chapter or chapter 36
  of this title, any payment of an educational assistance allowance described
  in subparagraph (B) of this paragraph shall not--
  `(i) be charged against the entitlement of any individual under this
  chapter; or
  `(ii) be counted toward the aggregate period for which section 1795 of
  this title limits an individual's receipt of assistance.
  `(B) The payment of the educational assistance allowance referred to in
  subparagraph (A) of this paragraph is the payment of such an allowance to
  an individual for pursuit of a course or courses under this chapter with
  respect to the period described in subparagraph (C) of this paragraph if
  the Secretary finds that the individual--
  `(i) had to discontinue such course pursuit as a result of being ordered,
  in connection with the Persian Gulf War, to serve on active duty under
  section 672, 673, 673b, or 675 of title 10; and
  `(ii) failed to receive credit or training time toward completion of the
  individual's approved educational, professional, or vocational objective
  as a result of having to discontinue, as described in clause (i) of this
  subparagraph, his or her course pursuit.
  `(C) The period of course pursuit referred to in subparagraph (B) of this
  paragraph is the period beginning on the effective date of the award of an
  educational assistance allowance under this chapter to the individual for
  the period of enrollment during which the individual discontinued course
  pursuit as described in subparagraph (B) of this paragraph and ending on
  the date of such discontinuance; except that in no case may such period
  exceed the portion of the period of enrollment with respect to which the
  individual failed to receive credit or training time, as determined under
  subparagraph (B)(ii) of this paragraph.'.
  (d) SELECTED RESERVE PROGRAM- Section 2131(c) of title 10, United States
  Code, is amended by adding at the end the following new paragraph:
  `(3)(A) Notwithstanding any other provision of this chapter or chapter 36
  of title 38, any payment of an educational assistance allowance described
  in subparagraph (B) of this paragraph shall not--
  `(i) be charged against the entitlement of any individual under this
  chapter; or
  `(ii) be counted toward the aggregate period for which section 1795 of
  title 38 limits an individual's receipt of assistance.
  `(B) The payment of the educational assistance allowance referred to in
  subparagraph (A) of this paragraph is the payment of such an allowance to
  the individual for pursuit of a course or courses under this chapter with
  respect to the period described in subparagraph (C) of this paragraph if
  the Secretary of Veterans Affairs finds that the individual--
  `(i) had to discontinue such course pursuit as a result of being ordered,
  in connection with the Persian Gulf War, to serve on active duty under
  section 672, 673, 673b, or 675 of this title; and
  `(ii) failed to receive credit or training time toward completion of the
  individual's approved educational, professional, or vocational objective
  as a result of having to discontinue, as described in clause (i) of this
  subparagraph, his or her course pursuit.
  `(C) The period of course pursuit referred to in subparagraph (B) of this
  paragraph is the period beginning on the effective date of the award of an
  educational assistance allowance under this chapter to the individual for
  the period of enrollment during which the individual discontinued course
  pursuit as described in subparagraph (B) of this paragraph and ending on
  the date of such discontinuance; except that in no case may such period
  exceed the portion of the period of enrollment with respect to which the
  individual failed to receive credit or training time, as determined under
  subparagraph (B)(ii) of this paragraph.'.
SEC. 205. EXTENSION.
  Section 2011(2)(B) of title 38, United States Code, is amended by striking
  out `1991' and inserting in lieu thereof `1994'.
TITLE III--VETERANS HOUSING PROGRAMS
SEC. 301. ENTITLEMENT FOR GUARANTEED LOANS.
  Section 1802(a)(2)(A) of title 38, United States Code, is amended by
  inserting `or as part of Operation Desert Storm or Operation Desert Shield
  in the Persian Gulf War' after `or the Vietnam era'.
SEC. 302. DIRECT LOAN BENEFITS.
  Section 1811 of title 38, United States Code, is amended by adding at the
  end the following:
  `(l) The Secretary may, without regard to the provisions of subsections
  (a), (b), (c), and (d), make or enter into a commitment to make a loan,
  for any purpose for which loans are made under section 1810 or 1812, to--
  `(1) any member of any reserve component of the United States Army, Navy,
  Marine Corps, Air Force, or Coast Guard and any member of the Armed Forces of
  the United States who meets the credit requirements applicable under section
  1810 or 1812 and who is unable to obtain a loan from a private lender at
  an interest rate not in excess of the rate authorized for guaranteed home
  loans or manufactured home loans under this chapter, as the case may be,
  because of the possibility of such Reserve member being ordered to active
  duty in connection with, or such member of the Armed Forces being transferred
  to the combat zone of, Operation Desert Storm in the Persian Gulf War; and
  `(2) any veteran who--
  `(A) applies for such loan (i) within one year from the date on which the
  individual returns to the United States from serving for at least 90 days
  on active duty as part of such Operation Desert Storm, or (ii) within one
  year from the date on which the veteran is released from hospitalization
  incident to such service, whichever is later;
  `(B) at the time such loan is made, has been discharged or released from
  the individual's most recent service on active duty under conditions other
  than dishonorable or remains on active duty;
  `(C) who is unable to obtain a loan from a private lender at an interest
  rate not in excess of the rate authorized for guaranteed home loans or
  manufactured home loans under this chapter, as the case may be; and
  `(D) at the time such loan is made, meets the credit requirements applicable
  under section 1810 or 1812, as the case may be.'.
TITLE IV--MILITARY PERSONNEL BENEFITS
SEC. 401. BENEFITS EXPLANATIONS FOR RESERVE MEMBERS UPON DEMOBILIZATION.
  The Secretary of Defense shall ensure that the Secretaries of the military
  departments, in carrying out section 1142 of title 10, United States Code,
  provide particular attention to the needs of members of reserve components
  who were called or ordered to active duty for service in connection with the
  Persian Gulf War and who are released from active duty upon the completion
  of the period of service required pursuant to such call or order. To assist
  in providing preseparaton counseling under that section, the Secretary
  of Veterans Affairs shall detail personnel of the Department of Veterans
  Affairs for service at each principal site at which such members will be
  released from active duty.
SEC. 402. TRANSITIONAL COMMISSARY AND EXCHANGE BENEFITS.
  The Secretary of Defense shall prescribe regulations to allow a member of
  a reserve component of the Armed Forces who is called or ordered to active
  duty under chapter 39 of title 10, United States Code, in connection with
  the Persian Gulf War to use commissary and exchange stores during the
  180-day period beginning on the date of the release of the member from
  active duty. The use of commissary and exchange stores pursuant to this
  section shall be authorized in the same manner and to the same extent as
  authorized for a member of the Armed Forces on active duty.
SEC. 403. TRANSITIONAL HEALTH CARE.
  (a) HEALTH CARE PROVIDED- A member of a reserve component of the Armed Forces
  who is called or ordered to active duty under chapter 39 of title 10, United
  States Code, in connection with the Persian Gulf War (and the dependents of
  the member) shall be entitled to receive health care described in subsection
  (b) upon the release of the member from active duty until the earlier of--
  (1) 60 days after the date of the release of the member from active duty; or
  (2) the date on which the member and the dependents of the member are
  covered by a health plan sponsored by an employer.
  (b) HEALTH CARE DESCRIBED- The health care referred to in subsection (a) is--
  (1) medical and dental care under section 1076 of title 10, United States
  Code, in the same manner as a dependent described in subsection (a)(2)
  of that section; and
  (2) health benefits contracted under the authority of section 1079(a)
  of that title and subject to the same rates and conditions as apply to
  persons covered under that section.
  (c) DEPENDENTS DEFINED- For purposes of this section, the term `dependent'
  has the meaning given that term in section 1072(2) of title 10, United
  States Code.
TITLE V--INTERNAL REVENUE MATTERS
SEC. 501. EXTENSION OF TIME FOR PERFORMING CERTAIN ACTS.
  (a) GENERAL RULE- For purposes of applying the internal revenue laws
  with respect to the tax liability (including any interest, penalty,
  additional amount, or addition to tax) of any individual who performed
  Desert Shield or Desert Storm services, the period during which such
  individual performed such services, and the next 60 days thereafter,
  shall be disregarded in determining whether any of the acts referred to
  in paragraph (1) of section 7508(a) of the Internal Revenue Code of 1986
  were performed within the time prescribed therefor.
  (b) SPECIAL RULE FOR OVERPAYMENTS-
  (1) IN GENERAL- Subsection (a) shall not apply for purposes of determining
  the amount of interest on any overpayment of tax.
  (2) SPECIAL RULES- In the case of any return filed by an individual
  entitled to the benefits of subsection (a) during the period disregarded
  under subsection (a), subsections (b)(3) and (e) of section 6611 of such
  Code shall not apply.
  (c) DESERT SHIELD OR DESERT STORM SERVICE- For purposes of this section--
  (1) IN GENERAL- The term `Desert Shield or Desert Storm service' means any
  service in a unit of the Armed Forces of the United States (as defined in
  section 7701(a)(15) of such Code) or in support of any such unit if--
  (A) such service is performed in the Persian Gulf area, and
  (B) such service is performed during the period that there is in effect a
  designation by the President that such unit is part of operations in the
  Persian Gulf region.
  (2) HOSPITALIZATION OUTSIDE THE UNITED STATES- An individual shall be treated
  as performing Desert Shield or Desert Storm services during any period of
  continuous hospitalization outside the United States attributable to an
  injury received while performing Desert Shield or Desert Storm services.
  (d) SPECIAL RULES-
  (1) APPLICATION TO SPOUSE- The provisions of this section shall apply to
  the spouse of any individual entitled to the benefits of subsection (a).
  (2) MISSING STATUS- The period of service referred to in subsection (c)
  shall include the period during which an individual entitled to benefits
  under subsection (a) is in missing status, within the meaning of section
  6013(f)(3) of such Code.
  (3) CERTAIN RULES MADE APPLICABLE- Rules similar to the rules of section
  7508(d) of such Code shall apply for purposes of this section.
SEC. 502. ROLLOVER ON GAIN FROM PRINCIPAL RESIDENCE.
  Section 1034(h)(3) of the Internal Revenue Code of 1986 is amended by adding
  at the end the following: `In the case of a member of a reserve component
  of the Armed Forces of the United States on active duty pursuant to such
  a call or order, the term includes the one-year period beginning on the
  date that the member is released from active duty.'.
SEC. 503. EXEMPTION FROM EARLY DISTRIBUTION PENALTY FOR INDIVIDUAL RETIREMENT
PLAN DISTRIBUTIONS FOR RESERVISTS CALLED TO ACTIVE DUTY AS A RESULT OF
PERSIAN GULF WAR.
  (a) IN GENERAL- Paragraph (2) of section 72(t) of the Internal Revenue
  Code of 1986 (relating to exceptions to 10-percent additional tax on early
  distributions from qualified retirement plans) is amended by adding at
  the end the following new subparagraph:
  `(D) INDIVIDUAL RETIREMENT PLAN DISTRIBUTIONS FOR RESERVISTS CALLED TO
  ACTIVE DUTY AS A RESULT OF PERSIAN GULF WAR-
  `(i) IN GENERAL- Any distribution from an individual retirement plan if made
  to an Persian Gulf War reservist during the qualified distribution period.
  `(ii) PERSIAN GULF WAR RESERVIST- For purposes of this subparagraph, the
  term `Persian Gulf War reservist' means any member of a reserve component
  of the Armed Forces of the United States who has performed active duty
  service in any location pursuant to an order to active duty issued under
  chapter 39 of title 10, United States Code, during the Persian Gulf War.
  `(iii) PERSIAN GULF WAR- For purposes of this subparagraph, the term
  `Persian Gulf War' means the period beginning on August 2, 1990, and, ending
  on the date thereafter prescribed by Presidential proclamation or by law.
  `(iv) QUALIFIED DISTRIBUTION PERIOD- For purposes of this subparagraph, the
  term `qualified distribution period' means, with respect to any individual,
  the period which--
  `(I) begins on the date on which the individual first performs any service
  described in clause (ii), and
  `(II) ends on the date which is 180 days after the termination of such
  service.'.
  (b) EFFECTIVE DATE- The amendment made by this section shall apply to
  distributions made after August 1, 1990.
TITLE VI--SMALL BUSINESS
SEC. 601. SHORT TITLE.
  This title may be cited as the `Veterans Entrepreneurship Promotion Act
  of 1991'.
SEC. 602. FINDINGS, PURPOSES, AND DEFINITIONS.
  (a) FINDINGS- Congress finds the following:
  (1) The United States has benefited immeasurably from the service of
  over 27,000,000 living veterans and those deceased veterans who have made
  great sacrifices in the defense of freedom, the preservation of democracy,
  and the protection of our free enterprise system.
  (2) The United States has been enriched by the participation of nearly
  3,500,000 businesses owned and controlled by veterans in the free enterprise
  system which are contributing to the vitality, strength, and prosperity
  of the American economy by providing goods and services, revenues, and
  job opportunities.
  (3) Despite these indices of progress, veterans have a low rate of
  self-employment in comparison to other groups. The business ownership
  rate among veterans, particularly Vietnam-era veterans, is substantially
  lower than that of nonveterans. Military service tends to place veterans
  at a competitive disadvantage with respect to business ownership. Business
  concerns owned by veterans are newer, smaller, and less secure financially
  than business concerns owned by nonveterans.
  (4) Disabled veterans are nearly twice as likely to be self-employed as
  veterans who are not disabled. However, due to the inability of disabled
  veterans to obtain capital, disabled veterans have low self-employment
  income levels and higher rates of business failure.
  (5) The conclusion of the Persian Gulf War will result in the creation of
  a new generation of war-time veterans. These veterans will confront the
  daunting challenge of reestablishing themselves in a civilian workplace in
  the midst of an economic recession. Accordingly, many who expect to return to
  their former civilian occupations will find their jobs unavailable, other
  employment options scarce, and will choose to pursue careers as owners
  of small business concerns. For many of these veterans, self-employment
  will provide the avenue by which they will attain economic security for
  themselves and their families. The United States has a responsibility
  to provide these courageous veterans, as well as other men and women who
  choose to serve their country through participation in the all-volunteer
  force, the tools necessary to succeed as owners of small business concerns.
  (6) During the decade of the 1990s, hundreds of thousands of other veterans
  are expected to start small businesses. Many of these new business owners
  will come from among the over 8,000,000 Vietnam-era veterans, who are
  generally in the 35-45 age category, the age group producing the majority
  of new business starts.
  (7) During the decade of the 1990s, world events and developments in all
  likelihood will precipitate a reduction in the personnel of the Armed
  Forces around the world. This will necessitate the closing of military
  bases and ultimately the discharge of thousands of United States military
  personnel and their return to civilian life. These men and women who
  are to be released from dutiful service to their country will join the
  existing veteran population. It is expected that as these veterans make
  their transition back to civilian life many will pursue the path of
  entrepreneurship and start small businesses.
  (8) It is in the national interest to remove all obstacles to the
  development and growth of business concerns owned and controlled by
  veterans. The elimination of such obstacles is essential to provide an
  equitable opportunity for full participation in the free enterprise system
  by veterans and to further enhance the economic vitality of the Nation.
  (9) Increased numbers of business concerns owned and controlled by veterans
  will directly benefit the Federal Government by expanding the potential
  number of suppliers of goods and services to the Government.
  (b) PURPOSES- The purposes of this title are--
  (1) to foster enhanced entrepreneurship among veterans by providing
  increased opportunities;
  (2) to vigorously promote the legitimate interests of business concerns
  owned and controlled by veterans; and
  (3) to ensure that those concerns receive a fair share of purchases made
  by the Federal Government.
  (c) DEFINITIONS- For the purposes of this title, the following definitions
  apply:
  (1) ADMINISTRATION- The term `Administration' means the Small Business
  Administration.
  (2) ADMINISTRATOR- The term `Administrator' means the Administrator of
  the Small Business Administration.
  (3) VETERAN; SMALL BUSINESS CONCERN OWNED AND CONTROLLED BY VETERANS- The
  terms `veteran' and `small business concern owned and controlled by veterans'
  have the meaning such terms have in section 3(n) of the Small Business Act.
SEC. 603. GENERAL DEFINITIONS.
  Section 3 of the Small Business Act (15 U.S.C. 632) is amended by adding
  at the end the following new subsection:
  `(n) For purposes of this Act--
  `(1) the term `small business concern owned and controlled by veterans'
  means a small business concern--
  `(A) which is at least 51 percent owned by one or more veterans, or in
  the case of a publicly owned business, at least 51 percent of the stock
  of which is owned by one or more veterans; and
  `(B) whose management and daily business operations are controlled by such
  veterans; and
  `(2) the term `veteran' means an individual who received an honorable
  discharge and was discharged or released--
  `(A) for a service-connected disability, as defined in chapter 11 of title
  38, United States Code;
  `(B) from active duty, as defined in section 101 of such title, after
  having served on such duty for a period of not less than 2 years or, in
  the case of a member of the Selected Reserve who is called to active duty
  in connection with the Persian Gulf War under section 672, 673, 673b, or
  675 of title 10, United States Code, for a period of more than 180 days; or
  `(C) from active duty, as defined in section 101 of such title, for the
  convenience of the Federal Government;
  `(3) the term `Persian Gulf War' means the period beginning on August
  2, 1990, and ending on the date thereafter prescribed by Presidential
  proclamation or by law.'.
SEC. 604. PROCUREMENT ASSISTANCE.
  (a) GOVERNMENT-WIDE GOALS- Subsection (g)(1) of section 15 of the Small
  Business Act (15 U.S.C. 644) is amended--
  (1) in the first sentence, by inserting `, small business concerns owned
  and controlled by veterans,' after `small business concerns' the first
  place it appears;
  (2) in the second sentence, by striking `20 percent' and inserting
  `25 percent';
  (3) in the third sentence, by striking the period at the end and inserting
  `and the government-wide goal for participation by small business concerns
  owned and controlled by veterans shall also be established at not less
  than 5 percent of such contract and subcontract awards.'; and
  (4) in the fourth sentence, by inserting `, small business concerns owned
  and controlled by veterans,' after `small business concerns' the first
  place it appears.
  (b) ANNUAL PARTICIPATION GOALS- Subsection (g)(2) of section 15 of the
  Small Business Act (15 U.S.C. 644) is amended--
  (1) in the first sentence, by inserting `small business concerns owned
  and controlled by veterans' after `small business concerns,';
  (2) in the second sentence, by inserting `, small business concerns owned
  and controlled by veterans,' after `small business concerns' the first
  place it appears;
  (3) in the fourth sentence, by inserting `small business concerns owned and
  controlled by veterans and participation by' after `including participation
  by'; and
  (4) in subparagraph (B), by striking `under the program established under
  section 8(a)' and inserting `under the programs established under sections
  8(a) and 28'.
SEC. 605. REPORTING.
  (a) REPORTS TO SMALL BUSINESS ADMINISTRATION- Subsection (h)(1) of section
  15 of the Small Business Act (15 U.S.C. 644) is amended by inserting `,
  small business concerns owned and controlled by veterans,' after `small
  business concerns' the first place it appears.
  (b) REPORTS TO THE PRESIDENT- Subsection (h)(2) of section 15 of the Small
  Business Act (15 U.S.C. 644) is amended--
  (1) in subparagraphs (A), (D), and (E), by inserting `, small business
  concerns owned and controlled by veterans,' after `small business concerns'
  the first place it appears; and
  (2) in subparagraph (D)(ii), by inserting `small business concerns owned and
  controlled by veterans and competition restricted to' after `restricted to'.
SEC. 606. SUBCONTRACTING.
  (a) STATEMENT OF POLICY- Paragraph (1) of section 8(d) of the Small Business
  Act (15 U.S.C. 637(d)) is amended--
  (1) in the first sentence, by inserting `small business concerns owned
  and controlled by veterans,' after `small business concerns,'; and
  (2) in the second sentence, by inserting `, small business concerns owned
  and controlled by veterans,' after `small business concerns' the first
  place it appears.
  (b) CONTRACT CLAUSE- The contract clause specified in section 8(d)(3)
  of the Small Business Act (15 U.S.C. 637(d)(3)) is amended as follows:
  (1) Subparagraph (A) of such clause is amended by inserting `, small business
  concerns owned and controlled by veterans,' after `small business concerns'
  the first place it appears in the first sentence and the first place it
  appears in the second sentence.
  (2) Subparagraph (C) of such clause is amended to read as follows:
  `(C)(i) As used in this contract, the term `small business concern' shall
  mean a small business as defined pursuant to section 3 of the Small Business
  Act and relevant regulations promulgated pursuant thereto.
  `(ii) The term `small business concern owned and controlled by socially and
  economically disadvantaged individuals' shall mean a small business concern--
  `(I) which is at least 51 per centum owned by one or more socially and
  economically disadvantaged individuals; or, in the case of any publicly
  owned business, at least 51 per centum of the stock of which is owned by
  one or more socially and economically disadvantaged individuals; and
  `(II) whose management and daily business operations are controlled by
  one or more of such individuals.
The contractor shall presume that socially and economically disadvantaged
individuals include Black Americans, Hispanic Americans, Native Americans,
Asian Americans, Asian Pacific Americans, and other minorities, or any
other individual found to be disadvantaged by the Administration pursuant
to section 8(a) of the Small Business Act.
  `(iii) The term `small business concern owned and controlled by veterans'
  shall mean a small business concern--
  `(I) which is at least 51 per centum owned by one or more veterans; or
  in the case of any publicly owned business, at least 51 per centum of the
  stock of which is owned by one or more veterans; and
  `(II) whose management and daily business operations are controlled by
  such veterans.
The contractor shall treat as veterans all individuals who are veterans
within the meaning of section 3(n) of the Small Business Act.'.
  (3) Subparagraph (D) of such clause is amended by inserting `, small business
  concern owned and controlled by veterans,' after `small business concern'
  the first place it appears.
  (c) CONFORMING AMENDMENTS- Section 8(d) of the Small Business Act (15
  U.S.C. 637(d)) is amended by inserting `, small business concerns owned
  and controlled by veterans,' after `small business concerns' the first
  place it appears in paragraphs (4)(D), (4)(E), (6)(A), (6)(C), (6)(F),
  (10)(B), and (11).
SEC. 607. IDENTIFICATION OF SMALL BUSINESS CONCERNS OWNED AND CONTROLLED
BY VETERANS.
  (a) SECRETARY OF VETERANS AFFAIRS-
  (1) IDENTIFICATION EFFORTS- The Secretary of Veterans Affairs shall, in
  consultation with the Assistant Secretary of Labor for Veterans' Employment
  and Training and the Administrator of the Small Business Administration,
  engage in affirmative efforts each fiscal year to identify small business
  concerns owned and controlled by veterans in the United States.
  (2) AVAILABILITY OF INFORMATION- The Secretary shall inform each small
  business concern identified under paragraph (1) that information concerning
  Federal procurement is available from the Administrator of the Small
  Business Administration.
  (b) ADMINISTRATOR OF SMALL BUSINESS ADMINISTRATION- The Administrator shall,
  during each fiscal year--
  (1) obtain information concerning the procurement practices and procedures
  of each Federal agency having procurement authority; and
  (2) make such information available to any small business concern
  requesting it.
SEC. 608. LOANS TO VETERANS.
  (a) PARTICIPATION IN LOANS- Section 7(a) of the Small Business Act (15
  U.S.C. 636) is amended by adding at the end the following new paragraph:
  `(21)(A) The Administration may enter into agreements under this subsection
  to participate on a deferred basis in loans to small business concerns owned
  and controlled by veterans, including loans for startup of new concerns.
  `(B) Notwithstanding paragraph (2), and except as provided by subparagraph
  (C), participation by the Administration in such loans shall be--
  `(i) not less than 95 percent of the balance of the financing outstanding
  at the time of disbursement if such financing does not exceed $155,000;
  `(ii) not less than 80 percent nor more than 90 percent of the financing
  outstanding at the time of disbursement if such financing exceeds $155,000
  but is less than $750,000; and
  `(iii) not less than 80 percent nor more than 85 percent of the financing
  outstanding at the time of disbursement if such financing exceeds $750,000.
  `(C) Participation by the Administration in such loans shall be not less
  than 90 percent of the financing outstanding at the time of disbursement,
  regardless of the amount of such financing, if such financing is a loan
  under paragraph (16).
  `(D) Notwithstanding paragraph (19)(B)(ii), the Administrator is authorized
  to permit lenders participating in any such loans to retain  1/2  of the
  fee collected pursuant to paragraph (18).'.
  (b) REGULATIONS- Not later than 90 days after the date of the enactment
  of this title, the Administrator shall issue regulations which ensure that--
  (1) the maturity for loans to veterans in which the Administration
  participates is the longest feasible term commensurate with the repayment
  ability of the veteran and is not to exceed 12 years, except when the loan
  finances real estate or the construction or acquisition of equipment with
  a useful life exceeding 12 years; and
  (2) in assessing the collateral of borrowers for the purpose of making such
  loans, the lender makes a favorable value assessment of such collateral
  when determining overall probability of recovery in the event of liquidation.
  (c) STUDY OF METHODS TO REDUCE LOAN COSTS- The Administrator shall conduct
  a study of methods to reduce costs incurred by small business concerns
  owned and controlled by veterans in applying for and securing loans. The
  Administrator shall transmit a report to the President and Congress not
  later than 1 year after the date of the enactment of this title containing
  the results of such study together with such legislative and administrative
  recommendations as the Administrator considers appropriate.
SEC. 609. ENTREPRENEURIAL TRAINING, COUNSELING, AND MANAGEMENT ASSISTANCE.
  The Administrator shall take such actions as may be necessary to ensure
  that small business concerns owned and controlled by veterans have
  access to programs established under the Small Business Act which provide
  entrepreneurial training, business development assistance, counseling, and
  management assistance to small business concerns. Such programs include the
  Small Business Development Center, Small Business Institute, Service Corps
  of Retired Executives (SCORE), and Active Corps of Executives (ACE) programs.
SEC. 610. GRANTS FOR VETERANS OUTREACH PROGRAMS.
  Section 8(b) of the Small Business Act (15 U.S.C. 637(b)) is amended--
  (1) by striking `and' at the end of paragraph (15);
  (2) by striking the period at the end of paragraph (16) and inserting a
  semicolon; and
  (3) by adding at the end the following new paragraph:
  `(17) to make grants to, and enter into contracts and cooperative agreements
  with, educational institutions, private businesses, nonprofit organizations,
  and Federal, State, and local department and agencies for the establishment
  and implementation of outreach programs for veterans.'.
SEC. 611. OUTREACH PROGRAM FOR VETERANS OF THE PERSIAN GULF WAR AND VETERANS
AFFECTED BY REDUCTIONS IN ARMED FORCES PERSONNEL.
  The Administrator, the Secretary of Veterans Affairs, and the Assistant
  Secretary of Labor for Veterans' Employment and Training shall establish
  an interagency working group to develop a comprehensive outreach program to
  assist veterans of the Persian Gulf War (as that term is defined in section
  3(n) of the Small Business Act) and veterans of the Armed Forces affected
  by reductions of military personnel. Such outreach program shall include
  business training and management assistance, employment and relocation
  counseling, and dissemination of information on veterans benefits, veterans
  entitlements, and the Veterans Business Opportunity and Development Program
  established under section 28 of the Small Business Act.
SEC. 612. INFORMATION COLLECTION.
  (a) BUSINESSES OWNED BY VETERANS- The Assistant Secretary of Labor for
  Veterans' Employment and Training shall on an annual basis collect and make
  available information on the number of sole proprietorships, partnerships,
  and corporations which are owned and controlled by veterans.
  (b) SMALL BUSINESSES OWNED BY VETERANS WHICH ARE FIRST-TIME RECIPIENTS OF
  FEDERAL CONTRACTS- The Secretary of Veterans Affairs shall obtain from each
  Federal agency the number of small business concerns owned and controlled by
  veterans and those owned and controlled by veterans with service-connected
  disabilities that are first-time recipients of contracts from such agency
  during any fiscal year beginning with fiscal year 1990.
SEC. 613. STATE OF SMALL BUSINESS REPORT.
  Section 303(e) of the Small Business and Economic Policy Act of 1980
  (15 U.S.C. 631(b)) is amended--
  (1) in paragraph (1), by striking `and' after the semicolon;
  (2) in paragraph (2), by striking the period at the end and inserting a
  semicolon; and
  (3) by adding at the end the following new paragraphs:
  `(3) small business concerns owned and controlled by veterans; and
  `(4) small business concerns owned and controlled by veterans with
  service-connected disabilities.'.
SEC. 614. ASSOCIATE ADMINISTRATOR FOR VETERANS PROGRAMS.
  Section 4(b)(1) of the Small Business Act (15 U.S.C. 633(b)(1)) is amended--
  (1) by striking `four' in the fifth sentence and inserting `five'; and
  (2) by inserting after the fifth sentence the following new sentence:
`One of the Associate Administrators shall be designated at the time of his
appointment as the Associate Administrator for Veterans Programs who shall be a
career employee in the Senior Executive Service and who shall be responsible to
the Administrator for the formulation and execution of policies and programs
under this title which provide assistance to small business concerns owned
and controlled by veterans, including programs established under section
28. The Associate Administrator for Veterans Programs shall have a deputy.'.
SEC. 615. ESTABLISHMENT OF VETERANS BUSINESS OPPORTUNITY AND DEVELOPMENT
PROGRAM.
  The Small Business Act (15 U.S.C. 631 et seq.) is amended by inserting
  after section 27 the following new section:
  `SEC. 28. (a)(1) It shall be the duty of the Administration and it is hereby
  empowered, whenever it determines such action is necessary or appropriate--
  `(A) to enter into contracts with the United States Government and
  any department, agency, or officer thereof having procurement powers
  obligating the Administration to furnish articles, equipment, supplies,
  services, or materials to the Government or to perform construction work
  for the Government. In any case in which the Administration certifies to any
  officer of the Government having procurement powers that the Administration
  is competent and responsible to perform any specific Government procurement
  contract to be let by any such officer, such officer shall be authorized in
  his discretion to let such procurement contract to the Administration upon
  such terms and conditions as may be agreed upon between the Administration
  and the procurement officer. Whenever the Administration and such procurement
  officer fail to agree, the matter shall be submitted for determination to
  the Secretary or the head of the appropriate department or agency by the
  Administrator. Not later than 5 days from the date the Administration is
  notified of a procurement officer's adverse decision, the Administration
  may notify the contracting officer of the intent to appeal such adverse
  decision, and within 15 days of such date the Administrator shall file
  a written request for a reconsideration of the adverse decision with
  the Secretary of the department or agency head. For the purposes of
  this subparagraph, a procurement officer's adverse decision includes a
  decision not to make available for award pursuant to this subsection a
  particular procurement requirement or the failure to agree on the terms
  and conditions of a contract to be awarded under the authority of this
  subsection. Upon receipt of the notice of intent to appeal, the Secretary
  of the department or agency head shall suspend further action regarding the
  procurement until a written decision on the Administrator's request for
  reconsideration has been issued by such Secretary or agency head, unless
  such officer makes a written determination that urgent and compelling
  circumstances which significantly affect interests of the United States
  will not permit waiting for a reconsideration of the adverse decision. If
  the Administrator's request for reconsideration is denied, the Secretary
  of the department or agency head shall specify the reasons why the selected
  firm was determined to be incapable to perform the procurement requirement,
  and the findings supporting such determination, which shall be made a part
  of the contract file for the requirement. A contract may not be awarded
  under this subsection if the award of the contract would result in a cost
  to the awarding agency which exceeds a fair market price;
  `(B) to arrange for the performance of such procurement contracts by
  negotiating or otherwise letting subcontracts to small business concerns
  owned and controlled by veterans for construction work, services, or the
  manufacture, supply, assembly of such articles, equipment, supplies,
  materials, or parts thereof, or servicing or processing in connection
  therewith, or such management services as may be necessary to enable the
  Administration to perform such contracts.
  `(C) A contract opportunity offered for award pursuant to this subsection
  shall be awarded on the basis of competition restricted to eligible program
  participants if there is a reasonable expectation that at least 2 eligible
  program participants will submit offers and that award can be made at a
  fair market price.
  `(2)(A) Any program participant selected by the Administration to perform
  a contract to be let pursuant to this subsection shall, when practicable,
  participate in any negotiation of the terms and conditions of such contract.
  `(B)(i) For purposes of paragraph (1), a `fair market price' shall be
  determined by the agency offering the procurement requirement to the
  Administration, in accordance with clauses (ii) and (iii).
  `(ii) The estimate of a current fair market price for a new procurement
  requirement, or a requirement that does not have a satisfactory procurement
  history, shall be derived from a price or cost analysis. Such analysis
  may take into account prevailing market conditions, commercial prices for
  similar products or services, or data obtained from any other agency. Such
  analysis shall consider such cost or pricing data as may be timely submitted
  by the Administration.
  `(iii) The estimate of a current fair market price for a procurement
  requirement that has a satisfactory procurement history shall be based on
  recent award prices adjusted to ensure comparability. Such adjustments
  shall take into account differences in quantities, performance times,
  plans, specifications, transportation costs, packaging and packing costs,
  labor and materials costs, overhead costs, and any other additional costs
  which may be deemed appropriate.
  `(C) An agency offering a procurement requirement for potential award
  pursuant to this subsection shall, upon the request of the Administration,
  promptly submit to the Administration a written statement detailing the
  method used by the agency to estimate the current fair market price for
  such contract, identifying the information, studies, analyses, and other
  data used by such agency. The agency's estimate of the current fair market
  price (and any supporting data furnished to the Administration) shall not
  be disclosed to any potential offeror (other than the Administration).
  `(D) A small business concern selected by the Administration to perform or
  negotiate a contract to be let pursuant to this subsection may request the
  Administration to protect the agency's estimate of the fair market price
  for such contract pursuant to paragraph (1)(A).
  `(3) In order to be eligible for selection by the Administration to perform
  or negotiate a contract to be let pursuant to this subsection a small
  business concern owned and controlled by veterans shall meet certification
  requirements contained in regulations issued by the Administrator. Such
  certification requirements shall include:
  `(A) A requirement that such concern certify on an annual basis that it
  meets the requirements of section 3(n) concerning ownership and control
  by veterans. Certification of ownership and control by veterans shall
  be accompanied by documentation obtained from the Secretary of Veterans
  Affairs by such concern which verifies that individuals who own and control
  such concern are veterans as defined in section 3(n).
  `(B) A requirement that such concern certify that it has been in business
  as a small business concern owned and controlled by veterans for the 1 year
  period beginning before the date of application for program participation;
  except that the Administrator may waive such requirement in appropriate
  cases.
  `(C) A requirement that such concern certify that it has not received and
  will not assert eligibility to receive a procurement contract pursuant
  to section 8(a) of this Act or section 1207 of the National Defense
  Authorization Act for Fiscal Year 1987.
  `(4) The Administrator shall also issue regulations establishing a limitation
  on the personal net worth of a program participant.
  `(A) Each program participant shall annually submit to the Administration--
  `(i) a personal financial statement for each owner upon whom eligibility
  was based; and
  `(ii) such other information as the Administration may deem necessary to
  make the determinations required by this paragraph.
  `(B)(i) Whenever, on the basis of information provided by a program
  participant pursuant to subparagraph (A) or otherwise, the Administration has
  reason to believe that the amount of funds or other assets withdrawn from
  a program participant for the personal benefit of its owners or any person
  or entity affiliated with such owners may have been unduly excessive, the
  Administration shall conduct a review to determine whether such withdrawal
  of funds or other assets was detrimental to the achievement of the targets,
  objectives, and goals contained in such program participant's business plan.
  `(ii) If the Administration determines, pursuant to such review, that
  funds or other assets have been withdrawn to the detriment of the program
  participant's business, the Administration shall--
  `(I) initiate a proceeding to terminate the program participant pursuant
  to subsection (b)(1)(F), subject to the right to a hearing under paragraph
  (6); or
  `(II) require an appropriate reinvestment of funds or other assets and
  such other steps as the Administration may deem necessary to ensure the
  protection of the concern.
  `(C) Whenever the Administration computes personal net worth for any
  purpose under this paragraph, it shall exclude from such computation--
  `(i) the value of investments that veteran owners have in their concerns,
  except that such value shall be taken into account under this paragraph
  when comparing such concerns to other concerns in the same business area
  that are owned by other than veterans;
  `(ii) the equity that veteran owners have in their primary personal
  residences, except that any portion of such equity that is attributable
  to unduly excessive withdrawals from a program participant or a concern
  applying for program participation shall be taken into account.
  `(5)(A) No small business concern shall be deemed eligible for any assistance
  pursuant to this subsection unless the Administration determines that with
  contract, financial, technical, and management support the small business
  concern will be able to perform contracts which may be awarded to such
  concern under paragraph (1)(B).
  `(B) Limitations established by the Administration in its regulations and
  procedures restricting the award of contracts pursuant to this subsection to
  a limited number of standard industrial classification codes in an approved
  business plan shall not be applied in a manner that inhibits the logical
  business progression by a participating small business concern into areas
  of industrial endeavor where such concern has the potential for success.
  `(6)(A) Subject to the provisions of subparagraph (E), the Administrator,
  prior to taking any action described in subparagraph (B), shall provide the
  small business concern that is the subject of such action, an opportunity
  for a hearing on the record, in accordance with chapter 5 of title 5,
  United States Code.
  `(B) The actions referred to in subparagraph (A) are--
  `(i) denial of program admission based upon a negative determination
  pursuant to paragraph (4);
  `(ii) a termination pursuant to subsection (b)(1)(F);
  `(iii) a graduation pursuant to subsection (b)(1)(H); and
  `(iv) the denial of a request to issue a waiver pursuant to paragraph
  (15)(B).
  `(C) The Administrator's proposed action, in any proceeding conducted under
  the authority of this paragraph, shall be sustained unless it is found to
  be arbitrary, capricious, or contrary to law.
  `(D) A decision rendered pursuant to this paragraph shall be the final
  decision of the Administration and shall be binding upon the Administration
  and those within its employ.
  `(E) The adjudicator selected to preside over a proceeding conducted under
  the authority of this paragraph shall decline to accept jurisdiction over
  any matter that--
  `(i) does not, on its face, allege facts that, if proven to be true,
  would warrant reversal or modification of the Administration's position;
  `(ii) is untimely filed;
  `(iii) is not filed in accordance with the rules of procedure governing
  such proceedings; or
  `(iv) has been decided by or is the subject of an adjudication before a
  court of competent jurisdiction over such matters.
  `(F) Proceedings conducted pursuant to the authority of this paragraph
  shall be completed and a decision rendered, insofar as practicable, within
  90 days after a petition for a hearing is filed with the adjudicating office.
  `(7) The Administration shall develop and implement an outreach program
  to inform and recruit small business concerns to apply for eligibility
  for assistance under this subsection. Such program shall make a sustained
  and substantial effort to solicit applications for certification from
  small business concerns located in areas of concentrated unemployment or
  underemployment or within labor surplus areas and within States having
  relatively few program participants and from small business concerns
  owned and controlled by veterans in industry categories that have not
  substantially participated in the award of contracts let under the authority
  of this subsection.
  `(8) To the maximum extent practicable, construction subcontracts awarded
  by the Administration pursuant to this subsection shall be awarded within
  the county or State where the work is to be performed.
  `(9)(A) The Administration shall require each concern eligible to receive
  subcontracts pursuant to this subsection to annually prepare and submit
  to the Administration a capability statement. Such statement shall briefly
  describe such concern's various contract performance capabilities and shall
  contain the name and telephone number of the veterans business counselor
  assigned such concern. The Administration shall separate such statements by
  those primarily dependent upon local contract support and those primarily
  requiring a national marketing effort. Statements primarily dependent
  upon local contract support shall be disseminated to appropriate buying
  activities in the marketing area of the concern. The remaining statements
  shall be disseminated to the directors of small and disadvantaged business
  utilization for the appropriate agencies who shall further distribute such
  statements to buying activities with such agencies that may purchase the
  types of items or services described on the capability statements.
  `(B) Contracting activities receiving capability statements shall, within
  60 days after receipt, contact the relevant veterans business counselor
  to indicate the number, type, and approximate dollar value of contract
  opportunities that such activities may be awarding over the succeeding
  12-month period and which may be appropriate to consider for award to
  those concerns for which it has received capability statements.
  `(10)(A) A concern may not be awarded a contract under this subsection as
  a small business concern unless the concern agrees that--
  `(i) in the case of a contract for services (except construction), at
  least 50 percent of the cost of contract performance incurred for personnel
  shall be expended for employees of the concern; and
  `(ii) in the case of a contract for procurement of supplies (other than
  procurement from a regular dealer in such supplies), the concern will
  perform work for at least 50 percent of the cost of manufacturing the
  supplies (not including the cost of materials).
  `(B) The Administration may change the percentage under clause (i) or
  (ii) of subparagraph (A) if the Administrator determines that such change
  is necessary to reflect conventional industry practices among business
  concerns that are below the numerical size standard for businesses in that
  industry category. A percentage established under the preceding sentence
  may not differ from a percentage established under section 15(o).
  `(C) The Administration shall establish, through public rulemaking,
  requirements similar to those specified in subparagraph (A) to be applicable
  to contracts for general and specialty construction and to contracts for
  any other industry category not otherwise subject to the requirements
  of such subparagraph. The percentage applicable to any such requirement
  shall be determined in accordance with subparagraph (B), except that such a
  percentage may not differ from a percentage established under section 15(o)
  for the same industry category.
  `(11)(A) An otherwise responsible business concern that is in compliance with
  the requirements of subparagraph (B) shall not be denied the opportunity to
  submit and have considered its offer for any procurement contract for the
  supply of a product to be let pursuant to this subsection or subsection
  (a) of section 15 solely because such concern is other than the actual
  manufacturer or processor of the product to be supplied under the contract.
  `(B) To be in compliance with the requirements referred to in subparagraph
  (A), such a business concern shall--
  `(i) be primarily engaged in the wholesale or retail trade;
  `(ii) be a regular dealer, as defined pursuant to section 35(a) of title
  41, United States Code (popularly referred to as the Walsh-Healey Public
  Contracts Act), in the product to be offered the Government; and
  `(iii) represent that it will supply the product of a domestic small
  business manufacturer or processor, except that, the Administrator may
  waive the application of the clause, as it pertains to the furnishing of
  a product manufactured or processed by a small business, for any class of
  products for which there are no small business manufacturers or processors
  in the Federal market.
  `(12)(A) No person within the employ of the Administration shall, during the
  term of such employment and for a period of 2 years after such employment
  has been terminated, engage in any activity or transaction specified in
  subparagraph (B) with respect to any program participant certified during
  such person's term of employment, if such person participated personally
  (either directly or indirectly) in decisionmaking responsibilities relating
  to such program participant or with respect to the administration of any
  assistance provided to program participants generally under this subsection
  or subsection (b).
  `(B) The activities and transactions prohibited by subparagraph (A) include--
  `(i) the buying, selling, or receiving (except by inheritance) of any
  legal or beneficial ownership of stock or any other ownership interest or
  the right to acquire any such interest;
  `(ii) the entering into or execution of any written or oral agreement
  (whether or not legally enforceable) to purchase or otherwise obtain any
  right or interest described in clause (i); and
  `(iii) the receipt of any other benefit or right that may be an incident
  of ownership.
  `(C)(i) The employees designated in clause (ii) shall annually submit a
  written certification to the Administration regarding compliance with the
  requirements of this paragraph.
  `(ii) The employees referred to in clause (i) are--
  `(I) regional administrators;
  `(II) district directors;
  `(III) the Associate Administrator for Veterans Programs;
  `(IV) employees whose principal duties relate to the award of contracts or
  the provision of other assistance pursuant to this subsection or subsection
  (b); and
  `(V) such other employees as the Administrator may deem appropriate.
  `(iii) Any present or former employee of the Administration who violates
  this paragraph shall be subject to a civil penalty, assessed by the Attorney
  General, that shall not exceed 300 percent of the maximum amount of gain
  such employee realized or could have realized as a result of engaging in
  those activities and transactions prescribed by subparagraph (B).
  `(iv) In addition to any other remedy or sanction provided for under law
  or regulation, any person who falsely certifies pursuant to clause (i)
  shall be subject to a civil penalty under the Program Fraud Civil Remedies
  Act of 1986 (31 U.S.C. 3801-3812).
  `(13)(A) Any employee of the Administration who has authority to take,
  direct others to take, recommend, or approve any action with respect to any
  program or activity conducted pursuant to this subsection or subsection
  (b), shall not, with respect to any such action, exercise or threaten to
  exercise such authority on the basis of the political activity or affiliation
  of any party. Employees of the Administration shall expeditiously report
  to the Inspector General of the Administration any such action for which
  such employee's participation has been solicited or directed.
  `(B) Any employee who willfully and knowingly violates subparagraph (A)
  shall be subject to disciplinary action, imposed by the Administrator, which
  may consist of separation from service, reduction in grade, suspension,
  or reprimand.
  `(C) Subparagraph (A) shall not apply to any action taken as a penalty or
  other enforcement of a violation of any law, rule, or regulation prohibiting
  or restricting political activity.
  `(D) The prohibitions of subparagraph (A), and remedial measures provided
  for under subparagraphs (B) and (C) with regard to such prohibitions,
  shall be in addition to, and not in lieu of, any other prohibitions,
  measures, or liabilities that may arise under any other provision of law.
  `(14)(A) Small business concerns participating in the program under
  subsection (b) and eligible to receive contracts pursuant to this subsection
  shall semiannually report to their assigned veterans business counselor
  the following:
  `(i) A listing of any agents, representatives, attorneys, accountants,
  consultants, and other parties (other than employees) receiving compensation
  to assist in obtaining a Federal contract for such program participant.
  `(ii) The amount of compensation received by any person listed under clause
  (i) during the relevant reporting period and a description of the activities
  performed in return for such compensation.
  `(B) The veterans business counselor shall promptly review and forward
  such report to the Associate Administrator for Veterans Programs. Any
  report that raises a suspicion of improper activity shall be reported
  immediately to the Inspector General of the Administration.
  `(C) The failure to submit a report pursuant to the requirements of this
  subsection and applicable regulations shall be considered `good cause' for
  the initiation of a termination proceeding pursuant to subsection (b)(1)(F).
  `(15)(A) Subject to the provisions of subparagraph (B), a contract
  (including options) awarded pursuant to this subsection shall be performed
  by the concern that initially received such contract. Notwithstanding the
  provisions of the preceding sentence, if the owner or owners upon whom
  eligibility was based relinquish ownership or control of such concern,
  or enter into any agreement to relinquish such ownership or control, such
  contract or option shall be terminated for the convenience of the Government,
  except that no repurchase costs or other damages may be assessed against
  such concerns due solely to the provisions of this subparagraph.
  `(B) The Administrator may, as a matter of discretion and on a nondelegable
  basis, waive the requirements of subparagraph (A) if requested to do so
  prior to the actual relinquishment of ownership or control. In addition
  to the requirement of the preceding sentence, a waiver may be given only
  if any of the following conditions exist:
  `(i) It is necessary for the owners of the concern to surrender partial
  control of such concern on a temporary basis in order to obtain equity
  financing.
  `(ii) The head of the contracting agency for which the contract is being
  performed certifies that termination of the contract would severely impair
  attainment of the agency's program objectives or missions.
  `(iii) Ownership and control of the concern that is performing the contract
  will pass to another small business concern that is a program participant,
  but only if the acquiring firm would otherwise be eligible to receive the
  award directly pursuant to this subsection.
  `(iv) The individuals upon whom eligibility was based are no longer able
  to exercise control of the concern due to incapacity or death.
  `(v) In order to raise equity capital, it is necessary for the owners of
  the concern upon whom eligibility was based to relinquish ownership of a
  majority of the voting stock of such concern, but only if--
  `(I) such concern has exited the veterans business opportunity and
  development assistance program;
  `(II) such owners will maintain ownership of the largest single outstanding
  block of voting stock (including stock held by affiliated parties); and
  `(III) such owners will maintain control of daily business operations.
  `(C) Concerns performing contracts awarded pursuant to this subsection
  shall be required to notify the Administration immediately upon entering
  an agreement (either oral or in writing) to transfer all or part of its
  stock or other ownership interest to any other party.
  `(D) Notwithstanding any other provision of law, for the purposes of
  determining ownership and control of a concern under this section, any
  potential ownership interests held by investment companies licensed under
  the Small Business Investment Act of 1958 shall be treated in the same
  manner as interests held by the individuals upon whom eligibility is based.
  `(b)(1) There is established within the Administration a veterans business
  opportunity and development assistance program (hereinafter referred to
  as the `program') which shall provide assistance exclusively for small
  business concerns eligible to receive contracts pursuant to subsection
  (a). The program, and all other services and activities authorized under
  this subsection and subsection (a), shall be managed by the Associate
  Administrator for Veterans Programs under the supervision of, and responsible
  to, the Administrator:
  `(A) The program shall--
  `(i) assist small business concerns participating in the program
  (either through public or private organizations) to develop and maintain
  comprehensive business plans which set forth the program participant's
  specific business targets, objectives, and goals developed and maintained
  in conformity with subparagraph (D);
  `(ii) provide for such other nonfinancial services as deemed necessary
  for the establishment, preservation, and growth of small business concerns
  participating in the program, including (I) loan packaging, (II) financial
  counseling, (III) marketing assistance, and (IV) management assistance;
  `(iii) assist small business concerns participating in the program to
  obtain equity and debt financing;
  `(iv) establish regular performance monitoring and reporting systems for
  small business concerns participating in the program to assure compliance
  with their business plans;
  `(v) analyze and report the causes of success and failure of small business
  concerns participating in the program; and
  `(vi) provide assistance necessary to help small business concerns
  participating in the program to procure surety bonds, including (I) the
  preparation of application forms required to receive a surety bond, (II)
  special management and technical assistance designed to meet specific
  needs of small business concerns participating in the program and
  which have received or are applying to receive a surety bond, and (III)
  preparation of all forms necessary to receive a surety bond guarantee
  from the Administration pursuant to title IV, part B of the Small Business
  Investment Act of 1958.
  `(B) Small business concerns eligible to receive contracts pursuant to
  subsection (a) shall participate in the program.
  `(C)(i) A small business concern participating in any program or activity
  conducted under the authority of this subsection shall be permitted
  continued participation and eligibility in such program or activity for
  a period of 5 years from the date of certification for program participation.
  `(ii) Nothing contained in this subparagraph shall be deemed to prevent
  the Administration from instituting a termination or graduation pursuant
  to subparagraph (F) or (J) for issues unrelated to the expiration of any
  time period limitation.
  `(D)(i) Promptly after certification under paragraph (2) a program
  participant shall submit a business plan (hereinafter referred to as the
  `plan') as described in clause (ii) of this subparagraph for review by the
  veterans business counselor assigned to assist such program participant. The
  plan may be a revision of a preliminary business plan submitted by the
  program participant or required by the Administration as a part of the
  application for certification under this section. Such plan, and subsequent
  modifications submitted under clause (iii) of this subparagraph, shall be
  approved by the veterans business counselor prior to the program participant
  being eligible for award of a contract pursuant to subsection (a).
  `(ii) The plans submitted under this subparagraph shall include the
  following:
  `(I) An analysis of market potential and other business analyses estimating
  the program participant's prospects for profitable operations during the
  term of program participation and after graduation.
  `(II) An analysis of the program participant's strengths and weaknesses
  with particular attention to financial, managerial, technical, and personnel
  conditions which are likely to impede small business concerns from receiving
  contracts other than those awarded under subsection (a).
  `(III) Specific targets, objectives, and goals for the business development
  of the program participant during the next and succeeding years utilizing
  the results of the analyses conducted pursuant to subclauses (I) and (II).
  `(IV) A transition management plan outlining specific steps to assure
  profitable business operations after graduation (to be incorporated into
  the program participant's plan during the first year of the transitional
  stage of program participation).
  `(V) Estimates of contract awards pursuant to subsection (a) and from
  other sources which the program participant will require to meet the
  specific targets, objectives, and goals for the years covered by its
  plan. The estimates established shall be consistent with the provisions
  of subparagraph (I) and subsection (a).
  `(iii) Each program participant shall annually review its currently
  approved plan with its veterans business counselor and modify such
  plan as may be appropriate. Any modified plan shall be submitted to
  the Administration for approval. The currently approved plan shall be
  considered valid until such time as a modified plan is approved by the
  veterans business counselor. Annual reviews pertaining to years in the
  transitional stage of program participation shall require, as appropriate,
  a written verification that such program participant has complied with
  the requirements of subparagraph (I).
  `(iv) Each program participant shall annually forecast its needs for
  contract awards under subsection (a) for the next program year and the
  succeeding program year during the review of its business plan, conducted
  pursuant to clause (iii). Such forecast shall be known as the section 28(a)
  contract support level and shall be included in the program participant's
  business plan. Such forecast shall include--
  `(I) the aggregate dollar value of contract support to be sought under
  subsection (a), reflecting compliance with the requirements of subparagraph
  (I),
  `(II) the types of contract opportunities being sought, identified by
  Standard Industrial Classification (SIC) Code or otherwise,
  `(III) such other information as may be requested by the veterans business
  counselor to provide effective business development assistance to the
  program participant.
  `(E) A small business concern participating in the program conducted under
  the authority of this subsection and eligible for the award of contracts
  pursuant to subsection (a) shall be denied all such assistance if such
  concern--
  `(i) voluntarily elects not to continue participation;
  `(ii) participates in the program for a period in excess of the time limits
  prescribed by paragraph (6);
  `(iii) is terminated pursuant to a termination proceeding conducted in
  accordance with subsection (a)(6); or
  `(iv) is graduated pursuant to a graduation proceeding conducted in
  accordance with subsection (a)(6).
  `(F) For the purposes of this section, the terms `terminated' or
  `termination' mean the total denial or suspension of any assistance provided
  pursuant to this section prior to the graduation of the participating
  small business concern pursuant to subparagraph (H) or the expiration
  of the maximum program participation in terms prescribed by paragraph
  (6). An action for termination shall be based upon good cause, including--
  `(i) the failure by such concern to maintain its eligibility for program
  participation;
  `(ii) a demonstrated pattern of unjustified delinquent performance or
  terminations for default with respect to contracts awarded under the
  authority of subsection (a);
  `(iii) a demonstrated pattern of failing to make required submissions or
  responses to the Administration in a timely manner;
  `(iv) the willful violation of any rule or regulation of the Administration
  pertaining to material issues;
  `(v) the debarment of the concern or its veteran owners by any agency
  pursuant to subpart 9.4 of title 48, Code of Federal Regulations (or any
  successor regulation); or
  `(vi) the conviction of the veteran owner or an officer of the concern for
  any offense indicating a lack of business integrity including any conviction
  for embezzlement, theft, forgery, bribery, falsification or violation of
  section 16. For purposes of this clause, no termination action shall be
  taken with respect to a veteran owner solely because of the conviction of
  an officer of the concern (who is other than a veteran owner) unless such
  owner conspired with, abetted, or otherwise knowingly acquiesced in the
  activity or omission that was the basis of such officer's conviction.
  `(G) The Director of the Division may initiate a termination proceeding
  by recommending such action to the Associate Administrator for Veterans
  Programs. Whenever the Associate Administrator, or a designee of such
  officer, determines such termination is appropriate, within 15 days after
  making such a determination the program participant shall be provided a
  written notice of intent to terminate, specifying the reasons for such
  action. No program participant shall be terminated from the program
  pursuant to subparagraph (F) without first being afforded an opportunity
  for a hearing in accordance with subsection (a)(6).
  `(H) For the purposes of this section, the term `graduated' or `graduation'
  means that the program participant is recognized as successfully completing
  the program by substantially achieving the targets, objectives, and goals
  contained in the concern's business plan.
  `(I)(i) During the developmental stage of its participation in the program,
  a program participant shall take all reasonable efforts within its control
  to attain the targets contained in its business plan for contracts awarded
  other than pursuant to subsection (a) (hereinafter referred to as `business
  activity targets'). Such efforts shall be made a part of the business plan
  and shall be sufficient in scope and duration to satisfy the Administration
  that the program participant will engage in a reasonable marketing strategy
  that will maximize its potential to achieve its business activity targets.
  `(ii) During the transitional stage of the program, a program participant
  shall be subject to regulations regarding business activity targets that
  are promulgated by the Administration pursuant to clause (iii).
  `(iii) The regulations referred to in clause (ii) shall--
  `(I) establish business activity targets applicable to program participants
  during the 4th and 5th year of program participation; such targets, for
  such period of time, shall reflect a reasonably consistent increase in
  contracts awarded other than pursuant to subsection (a), expressed as a
  percentage of total sales;
  `(II) require a program participant to attain its business activity targets;
  `(III) provide that, before the receipt of any contract to be awarded
  pursuant to subsection (a), the program participant (if it is in the
  transitional stage) must certify that it has complied with the regulations
  promulgated pursuant to subclause (II), or that it is in compliance with
  such remedial measures as may have been ordered pursuant to regulations
  issued under subclause (V);
  `(IV) require the Administration to review each program participant's
  performance regarding attainment of business activity targets during
  periodic reviews of such participant's business plan; and
  `(V) authorize the Administration to take appropriate remedial measures
  with respect to a program participant that has failed to attain a required
  business activity target for the purpose of reducing such participant's
  dependence on contracts awarded pursuant to subsection (a), including
  assisting the program participant to expand the dollar volume of its
  competitive business activity or limiting the dollar volume of contracts
  awarded to the program participant pursuant to subsection (a); except for
  actions that would constitute a termination, remedial measures taken pursuant
  to this subclause shall not be reviewable pursuant to subsection (a)(6).
  `(2)(A) The Associate Administrator for Veterans Programs shall be
  responsible for coordinating and formulating policies relating to Federal
  assistance to small business concerns eligible to receive contracts pursuant
  to subsection (a).
  `(B) Any individual upon whom eligibility is based pursuant to subsection
  (a), shall be permitted to assert such eligibility for only 1 small
  business concern.
  `(C) No concern, previously eligible for the award of contracts pursuant to
  subsection (a), shall be subsequently recertified for program participation
  if its prior participation in the program was concluded for any of the
  reasons described in paragraph (1)(E).
  `(D) A concern eligible for the award of contracts pursuant to this
  subsection shall remain eligible for such contracts if there is a transfer
  of ownership and control (as defined pursuant to subsection (a)(3))
  to individuals who are determined to be veterans pursuant to subsection
  (a). In the event of such a transfer, the concern, if not terminated or
  graduated, shall be eligible for a period of continued participation in
  the program not to exceed the time limitations prescribed in paragraph (6).
  `(E) There is established a Division of Program Certification and Eligibility
  (hereinafter referred to as the `Division') that shall be made part of the
  Office of Veterans Programs. The Division shall be headed by a Director who
  shall report directly to such Associate Administrator. The Division shall
  establish field offices within such regional offices of the Administration as
  may be necessary to perform efficiently its functions and responsibilities.
  `(F) Subject to the provisions of subsection (a)(6), the functions and
  responsibility of the Division are to--
  `(i) receive, review, and evaluate applications for certification pursuant
  to paragraphs (3) and (4) of subsection (a);
  `(ii) advise each program applicant within 15 days after the receipt of
  an application as to whether such application is complete and suitable
  for evaluation and, if not, what matters must be rectified;
  `(iii) render recommendations on such applications to the Associate
  Administrator for Veterans Programs;
  `(iv) review and evaluate financial statements and other submissions from
  concerns participating in the program established by this subsection
  to ascertain continued eligibility to receive subcontracts pursuant to
  subsection (a);
  `(v) make a request for the initiation of termination or graduation
  proceedings, as appropriate, with the Associate Administrator for Veterans
  Programs;
  `(vi) decide protests from applicants that have been denied program
  admission; and
  `(vii) decide protests regarding the status of a concern as a concern
  owned and controlled by veterans for purposes of any program or activity
  conducted under the authority of subsection (d) of section 8, or any other
  provision of Federal law that references such subsection for a definition
  of program eligibility; and
  `(viii) implement such policy directives as may be issued by the Associate
  Administrator for Veterans Programs pursuant to subparagraph (H) regarding,
  among other things, the geographic distribution of concerns to be admitted
  to the program and the industrial make-up of such concerns.
  `(G) An applicant shall not be denied admission into the program due solely
  to a determination by the Division that specific contract opportunities
  are unavailable to assist in the development of such concern unless--
  `(i) the Government has not previously procured and is unlikely to procure
  the types of products or services offered by the concern; or
  `(ii) the purchases of such products or services by the Federal Government
  will not be in quantities sufficient to support the developmental needs of
  the applicant and other program participants providing the same or similar
  items or services.
  `(H) Thirty days before the conclusion of each fiscal year, the Director
  of the Division shall review all concerns that have been admitted into the
  program during the preceding 12-month period. The review shall ascertain
  the number of entrants, their geographic distribution and industrial
  classification. The Director shall also estimate the expected growth of the
  program during the next fiscal year and the number of additional veterans
  business counselors, if any, that will be needed to meet the anticipated
  demand for the program. The findings and conclusions of the Director shall be
  reported to the Associate Administrator for Veterans Programs by September
  30 of each year. Based on such report and such additional data as may be
  relevant, the Associate Administrator shall, by October 31 of each year,
  issue policy and program directives applicable to such fiscal year that--
  `(i) establish priorities for the solicitation of program applications
  from underrepresented regions and industry categories;
  `(ii) assign staffing levels and allocate other program resources as
  necessary to meet program needs; and
  `(iii) establish priorities in the processing and admission of new
  program participants as may be necessary to achieve an equitable geographic
  distribution of concerns and a distribution of concerns across all industry
  categories in proportions needed to increase significantly contract awards to
  small business concerns owned and controlled by veterans. When considering
  such increase the Administration shall give due consideration to those
  industrial categories where Federal purchases have been substantial but
  where the participation rate of such concerns has been limited.
  `(I)(i) The Administration shall conduct an evaluation of a program
  participant's eligibility for continued participation in the program whenever
  it receives specific and credible information alleging that such program
  participant no longer meets the requirements for program eligibility. Upon
  making a finding that a program participant is no longer eligible, the
  Administration shall initiate a termination proceeding in accordance
  with subparagraph (F). A program participant's eligibility for award of
  any contract under the authority of subsection (a) may be suspended or
  terminated pursuant to subpart 9.4 of title 48, Code of Federal Regulations
  (or any successor regulation).
  `(ii) No award shall be made pursuant to subsection (a) to other than a
  small business concern.
  `(3)(A) The Administration shall segment the program into two stages:
  a developmental stage; and a transitional stage.
  `(B) The developmental stage of program participation shall be designed to
  assist the concern to access its markets and to strengthen its financial
  and managerial skills.
  `(C) The transitional stage of program participation shall be designed to
  prepare such concern for graduation from the program.
  `(4) A program participant, if otherwise eligible, shall be qualified to
  receive the following assistance during the stages of program participation
  specified in paragraph (3):
  `(A) Contract support pursuant to subsection (a).
  `(B) Financial assistance pursuant to section 7(a).
  `(C) Training assistance whereby the Administration shall conduct
  training sessions to assist individuals and enterprises eligible to receive
  contracts under subsection (a) in the development of business principles and
  strategies to enhance their ability to successfully compete for contracts
  in the marketplace.
  `(D) Joint ventures, leader-follow arrangements, and teaming agreements
  between the program participant and other program participants and other
  business concerns with respect to contracting opportunities for the research,
  development, full-scale engineering or production of major systems. Such
  activities shall be undertaken on the basis of programs developed by
  the agency responsible for the procurement of the major system, with the
  assistance of the Administration.
  `(E) Transitional management business planning training and technical
  assistance.
  `(5) Program participants in the developmental stage of program participation
  shall be eligible for the assistance provided by subparagraphs (A), (B),
  and (C) of paragraph (4). Program participants in the transitional stage
  of program participation shall be eligible for the assistance provided by
  subparagraphs (A), (B), (D), and (E) of paragraph (4).
  `(6) Subject to the provisions of paragraph (1)(C), a small business concern
  may receive developmental assistance under the program and contracts under
  subsection (a) for a total period of not longer than 5 years, measured from
  the date of its certification under the authority of such section, of which--
  `(A) no more than 3 years may be spent in the developmental stage of
  program participation; and
  `(B) no more than 2 years may be spent in the transitional stage of program
  participation.
  `(7)(A) The Administrator shall develop and implement a process for the
  systematic collection of data on the operations of the program established
  pursuant to paragraph (1).
  `(B) Not later than April 30 of each year, the Administrator shall submit
  a report to the Congress on the program that shall include the following:
  `(i) The average personal net worth of individuals who own and control
  concerns that were initially certified for participation in the program
  during the immediately preceding fiscal year. The Administrator shall also
  indicate the dollar distribution of net worths, at $50,000 increments,
  of all such individuals.
  `(ii) A description and estimate of the benefits and costs that have
  accrued to the economy and the Government in the immediately preceding
  fiscal year due to the operations of those business concerns that were
  performing contracts awarded pursuant to subsection (a).
  `(iii) A listing of all participants in the program during the preceding
  fiscal year identifying, by State and by Region, for each firm: the name
  of the concern, the race or ethnicity, and gender of the veteran owners,
  the dollar value of all contracts received in the preceding year, the
  dollar amount of advance payments received by each concern pursuant to
  contracts awarded under subsection (a), and a description including (if
  appropriate) an estimate of the dollar value of all benefits received
  pursuant to paragraphs (4) and (5) and section 7(a) during such year.
  `(iv) The total dollar value of contracts and options awarded during
  the preceding fiscal year pursuant to subsection (a) and such amount
  expressed as a percentage of total sales of (I) all firms participating
  in the program during such year; and (II) of firms in each of the 5 years
  of program participation.
  `(v) A description of such additional resources or program authorities
  as may be required to provide the types of services needed over the next
  2-year period to service the expected portfolio of firms certified pursuant
  to subsection (a).
  `(vi) The total dollar value of contracts and options awarded pursuant
  to subsection (a), at such dollar increments as the Administrator deems
  appropriate, for each four digit Standard Industrial Classification (SIC)
  Code under which such contracts and options were classified.
  `(C) The first report required by subparagraph (B) shall pertain to the
  first fiscal year beginning after the date of the enactment of this section.
  `(c) In carrying out its functions under this section, the Administration
  is authorized--
  `(1) to utilize, with their consent, the services and facilities of Federal
  agencies without reimbursement, and, with the consent of any State or
  political subdivision of a State, accept and utilize the services and
  facilities of such State or subdivision without reimbursement;
  `(2) to accept, in the name of the Administration, and employ or dispose of
  in furtherance of the purposes of this Act, any money or property, real,
  personal, or mixed, tangible, or intangible, received by gift, devise,
  bequest, or otherwise;
  `(3) to accept voluntary and uncompensated services, notwithstanding the
  provisions of section 3679(b) of the Revised Statutes (31 U.S.C. 665(b)); and
  `(4) to employ experts and consultants or organizations thereof as
  authorized by section 15 of the Administrative Expenses Act of 1946 (5
  U.S.C. 55a), except that no individual may be employed under the authority
  of this subsection for more than 100 days in any fiscal year; to compensate
  individuals so employed at rates not in excess of the daily equivalent of
  the highest rate payable under section 5332 of title 5, United States Code,
  including travel time; and to allow them, while away from their homes or
  regular places of business, travel expenses (including per diem in lieu
  of subsistence) as authorized by section 5 of such Act (5 U.S.C. 73b-2)
  for persons in the Government service employed intermittently, while so
  employed: Provided, however, That contracts for such employment may be
  renewed annually.'.
SEC. 616. NATIONAL VETERANS BUSINESS COUNCIL
  (a) ESTABLISHMENT- There is hereby established a Council to be known as the
  `National Veterans Business Council' (hereinafter in this section referred
  to as the `Council').
  (b) DUTIES-
  (1) IN GENERAL- The Council shall review--
  (A) the role of Federal Government and State and local governments in
  assisting and promoting aid to, and the promotion of, business concerns
  owned and controlled by veterans;
  (B) data collection procedures and the availability of data relating to
  (A) business concerns owned and controlled by veterans, (B) small business
  concerns owned and controlled by veterans, (C) small business concerns
  owned and controlled by veterans with service-connected disabilities,
  and (D) small business concerns owned and controlled by socially and
  economically disadvantaged veterans; and
  (C) such other government initiatives as may exist relating to business
  concerns owned by veterans, including those relating to Federal procurement.
  (2) ANNUAL RECOMMENDATIONS- Not later than December 31st of the year
  beginning after the date of the enactment of this title, and every 12 months
  thereafter until the Council terminates under subsection (g), the Council
  based upon its reviews shall recommend to Congress and the President--
  (A) new private sector initiatives which would provide management and
  technical assistance to small business concerns owned and controlled
  by veterans;
  (B) ways to promote greater access to public and private sector financing
  and procurement opportunities for such business; and
  (C) detailed multiyear plans, with specific goals and timetables, for both
  public and private sector actions to promote increased business development
  and ownership by veterans and to encourage their full participation in
  the economic mainstream.
  (c) MEMBERSHIP-
  (1) NUMBER AND APPOINTMENT- The Council shall be composed of 9 members,
  appointed by the President after consultation with the chairman and ranking
  minority member of each of the Committees on Veterans' Affairs and Small
  Business of the House of Representatives and the Senate. Such appointments
  shall be made not later than 90 days after the date of the enactment of
  this title.
  (2) EX-OFFICIO MEMBERS- The Council shall have the following ex-officio
  members:
  (A) The Administrator of the Small Business Administration (or the
  Administrator's designee).
  (B) The Secretary of Veterans Affairs (or the Secretary's designee).
  (C) The Secretary of Labor (or the Assistant Secretary of Labor for Veterans'
  Employment and Training).
  (D) The Secretary of Commerce (or the Secretary's designee).
  (E) The Secretary of Defense (or the Secretary's designee).
  (F) The Administrator of the General Services Administration (or the
  Administrator's designee).
  (3) QUALIFICATIONS- Appointments under subsection (a) shall be made from
  among individuals--
  (A) who are specially qualified to serve on the Council by virtue of their
  education, training, and experience;
  (B) who are recognized authorities in the fields of business and small
  business; and
  (C) who are not officers or employees of the Federal Government or Congress.
  (4) REPRESENTATION OF VETERANS AND SMALL BUSINESS OWNERS- Of the individuals
  appointed under subsection (a)--
  (A) at least 2 members shall be veterans; and
  (B) at least 2 members shall be owners of a small business concern, as
  such term is defined in section 3 of the Small Business Act.
  (5) GEOGRAPHICAL REPRESENTATION--In making appointments under subsection
  (a), the President shall give due consideration to achieving balanced
  geographical representation.
  (6) TERMS- Members shall be appointed for the life of the Council, except if
  any such appointee becomes an officer or employee of the Federal Government
  or Congress, such individual may continue as a member of the Council for
  not longer than the 30-day period beginning on the date such individual
  becomes such an officer or employee.
  (7) VACANCIES- A vacancy on the Council shall be filled in the manner in
  which the original appointment was made.
  (8) TRAVEL EXPENSES- Members of the Council shall serve without pay for
  such membership, except that members of the Council shall be entitled
  to reimbursement for travel, subsistence, and other necessary expenses
  incurred by them in carrying out the functions of the Council, in the same
  manner as persons employed intermittently in the Federal Government are
  allowed expenses under section 5703 of title 5, United States Code.
  (9) QUORUM-
  (A) RECEIPT OF EVIDENCE- Two members of the Council shall constitute a
  quorum for the receipt of testimony and other evidence.
  (B) APPROVAL OF RECOMMENDATIONS AND REPORTS- A majority of the Council
  shall constitute a quorum for the approval of a recommendation or report
  submitted pursuant to this section.
  (10) CHAIRMAN AND VICE CHAIRMAN- The Chairman and Vice Chairman of the
  Council shall be designated by the President. The term of office of the
  Chairman and Vice Chairman shall be at the discretion of the President.
  (11) REQUIRED NUMBER OF MEETINGS- The Council shall meet not less than 2
  times a year. Meetings shall be at the call of the Chairman.
  (d) DIRECTOR AND STAFF-
  (1) APPOINTMENT- Subject to such rules as may be adopted by the Council
  and without regard to provisions of title 5, United States Code, governing
  appointments, classification, compensation, and appraisal, the Chairman
  shall have the power to--
  (A) appoint a Director who shall be paid at an annual rate of basic pay
  not to exceed the rate payable for GS-18 of the General Schedule; and
  (B) upon recommendation of the Director, to appoint and fix the pay of
  not more than 4 additional personnel.
  (2) PROCUREMENT OF TEMPORARY SERVICES- The Council may procure temporary
  and intermittent services under section 3109(b) of title 5, United States
  Code, but at rates for individuals not to exceed the daily equivalent of the
  maximum annual rate of basic pay payable for GS-18 of the General Schedule.
  (3) DETAIL OF PERSONNEL FROM FEDERAL AGENCIES- Upon request of the Chairman,
  the head of any Federal department or agency may detail, on a reimbursable
  basis, any of the personnel of such agency to the Council to assist the
  Council in carrying out its duties under this section without regard to
  section 3341 of title 5, United States Code.
  (e) POWERS OF THE COUNCIL-
  (1) IN GENERAL- The Council may, for the purpose of carrying out this
  section, sit and act at such times and places, hold such hearings, take
  such testimony, receive such evidence, and consider such information,
  as the Council considers appropriate. The Council may administer oaths
  for the receipt of such testimony.
  (2) AUTHORITY OF INDIVIDUAL MEMBERS- Any member or person within the employ
  of the Council may, if so authorized by the Council, take any action which
  the Council is authorized to take by this section.
  (3) RECEIPT OF INFORMATION FROM FEDERAL AGENCIES- Except as otherwise
  prohibited by law, the Council may secure directly from any department or
  agency of the United States information necessary to enable it to carry out
  its duties under this section. In the case of requests made of the Small
  Business Administration, such requests shall be limited to the provision of
  technical and advisory assistance, the furnishing of pertinent information,
  and such other assistance as may be considered appropriate and necessary,
  except that such agency may not provide clerical support or other such
  related services. Upon the request of the Chairman, the head of such
  department or agency shall promptly furnish such information to the Council.
  (4) UNITED STATES MAILS- The Council may use the United States mails in
  the same manner and under the same conditions as departments and agencies
  of the United States.
  (5) ADMINISTRATIVE SUPPORT SERVICES- The Administrator of the General
  Services Administration shall provide to the Council, on a reimbursable
  basis, such administrative support services as the Council may request. In
  addition, the Administrator shall, as appropriate, provide to the Council,
  upon its request, access to and use of such Federal facilities, other than
  facilities containing offices of Small Business Administration personnel,
  as may be necessary for conduct of the business of the Council.
  (f) ANNUAL REPORT- Not later than December 31st of the year beginning
  after the date of the enactment of this title, and every 12 months
  thereafter until the Council terminates under subsection (g), the Council
  shall transmit to the President and to each House of Congress a report
  on activities during the preceding fiscal year. Each such report shall
  contain a detailed statement on the activities of the Council, and the
  findings and conclusions of the Council, together with its recommendations
  for such legislation and administrative actions as the Council considers
  appropriate based upon reviews conducted under subsection (b).
  (g) TERMINATION- The Council shall terminate not later than 3 years after
  the first meeting of the Council.
SEC. 617. AUTHORIZATION OF APPROPRIATIONS.
  (a) IN GENERAL- Section 20 of the Small Business Act is amended by adding
  at the end the following new subsection:
  `(i) There is authorized to be appropriated the following amounts:
  `(1) For fiscal years 1992 through 1994, $5,000,000 to carry out section
  28. Of such sum, not more than $4,750,000 may be made available for salaries
  and expenses of the Administration, including salaries and expenses incurred
  in the establishment of the Office of Veterans Programs and the Divisions of
  Management Assistance and Outreach, Program Certification and Eligibility,
  and Procurement as parts of such office, and not more than $250,000 may
  be made available for the training and education of personnel in such office.
  `(2) For each of fiscal years 1992, 1993, and 1994, $1,000,000 per fiscal
  year to carry out section 8(b)(17).'.
  (b) INTENT OF CONGRESS- It is the intent of Congress that appropriations made
  to a department or agency of the United States in a fiscal year to carry out
  programs and activities authorized by this title and amendments made by this
  title, including amounts appropriated to the Small Business Administration
  under section 20(i) of the Small Business Act shall not raise from current
  amounts the aggregate appropriations to such department or agency.
TITLE VII--OTHER MATTERS
SEC. 701. REPEAL OF CERTAIN LIMITATIONS ON PAYMENT OF UNEMPLOYMENT COMPENSATION
TO FORMER MEMBERS OF THE ARMED FORCES.
  (a) GENERAL RULE- Subsection (c) of section 8521 of title 5, United States
  Code, is hereby repealed.
  (b) EFFECTIVE DATE- The repeal made by subsection (a) shall apply to weeks
  of unemployment beginning after the date of the enactment of this Act.
SEC. 702. STUDENT LOAN DEFERMENTS.
  (a) RETENTION OF GRACE PERIOD- Repayment of any loan made under part B or
  E of title IV of the Higher Education Act of 1965 to an individual who is
  a member of the Armed Forces called or ordered to active duty in connection
  with operations in the Persian Gulf region shall be eligible for deferment
  under section 428(b)(1)(M)(ii) or 464(c)(2)(A)(ii), respectively, of the
  Higher Education Act of 1965, during the continuance of such duty. Such
  period of deferment shall not be counted against the grace period (preceding
  the commencement of repayment) that is available to any such individual
  with respect to any such loan under section 428(b)(1)(E) or 464(c)(1)(A),
  respectively, of such Act.
  (b) OPERATIONS IN THE PERSIAN GULF REGION DEFINED- For purposes of subsection
  (a), the term `operations in the Persian Gulf region' means United States
  military activities conducted as a consequence of the invasion of Kuwait
  by Iraq on August 2, 1990, including United States military activities
  conducted under the name Operation Desert Shield or Operation Desert Storm.