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114th Congress    }                                      {      Report
                        HOUSE OF REPRESENTATIVES
 2d Session       }                                      {     114-708

======================================================================



 
  HONORING INVESTMENTS IN RECRUITING AND EMPLOYING AMERICAN MILITARY 
                          VETERANS ACT OF 2016

                                _______
                                

 September 6, 2016.--Committed to the Committee of the Whole House on 
            the State of the Union and ordered to be printed

                                _______
                                

    Mr. Miller of Florida, from the Committee on Veterans' Affairs, 
                        submitted the following

                              R E P O R T

                        [To accompany H.R. 3286]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Veterans' Affairs, to whom was referred 
the bill (H.R. 3286) to encourage effective, voluntary private 
sector investments to recruit, employ, and retain men and women 
who have served in the United States military with annual 
presidential awards to private sector employers recognizing 
such efforts, and for other purposes, having considered the 
same, report favorably thereon with an amendment and recommend 
that the bill as amended do pass.

                                CONTENTS

                                                                   Page
Amendment........................................................     2
Purpose and Summary..............................................     4
Background and Need for Legislation..............................     5
Hearings.........................................................     6
Subcommittee Consideration.......................................     6
Committee Consideration..........................................     7
Committee Votes..................................................     7
Committee Oversight Findings.....................................     7
Statement of General Performance Goals and Objectives............     7
New Budget Authority, Entitlement Authority, and Tax Expenditures     7
Earmarks and Tax and Tariff Benefits.............................     7
Committee Cost Estimate..........................................     8
Congressional Budget Office Estimate.............................     8
Federal Mandates Statement.......................................     9
Advisory Committee Statement.....................................     9
Constitutional Authority Statement...............................     9
Applicability to Legislative Branch..............................     9
Statement on Duplication of Federal Programs.....................     9
Disclosure of Directed Rulemaking................................     9
Section-by-Section Analysis of the Legislation...................    10
Changes in Existing Law Made by the Bill as Reported.............    11

                               Amendment

    The amendment is as follows:
    Strike all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE.

  This Act may be cited as the ``Honoring Investments in Recruiting and 
Employing American Military Veterans Act of 2016'' or the ``HIRE Vets 
Act''.

SEC. 2. HIRE VETS MEDALLION PROGRAM.

  (a) Program Established.--Not later than one year after the date of 
enactment of this Act, the Secretary of Labor shall establish, by rule, 
a HIRE Vets Medallion Program to solicit voluntary information from 
employers for purposes of recognizing, by means of an award to be 
designated a ``HIRE Vets Medallion'', verified efforts by such 
employers--
          (1) to recruit, employ, and retain veterans; and
          (2) to provide community and charitable services supporting 
        the veteran community.
  (b) Application Process.--Beginning in the calendar year following 
the calendar year in which the Secretary establishes the program--
          (1) the Secretary shall annually--
                  (A) solicit and accept voluntary applications from 
                employers in order to consider whether those employers 
                should receive a HIRE Vets Medallion;
                  (B) review applications received in each calendar 
                year; and
                  (C) provide to the President a list of recipients; 
                and
          (2) the President shall annually--
                  (A) notify such recipients of their awards; and
                  (B) at a time to coincide with the annual 
                commemoration of Veterans Day--
                          (i) announce the names of such recipients;
                          (ii) recognize such recipients through 
                        publication in the Federal Register; and
                          (iii) issue to each such recipient--
                                  (I) a HIRE Vets Medallion of the 
                                level determined under section 3; and
                                  (II) a certificate stating that such 
                                employer is entitled to display such 
                                HIRE Vets Medallion during the 
                                following calendar year, to be 
                                designated a ``HIRE Vets Medallion 
                                Certificate''.
  (c) Timing.--
          (1) Solicitation period.--The Secretary shall solicit 
        applications not later than January 31st of each calendar year 
        for the medallions to be awarded in November of that calendar 
        year.
          (2) End of acceptance period.--The Secretary shall stop 
        accepting applications not earlier than April 30th of each 
        calendar year for the medallions to be awarded in November of 
        that calendar year.
          (3) Review period.--The Secretary shall finish reviewing 
        applications not later than August 31st of each calendar year 
        for the medallions to be awarded in November of that calendar 
        year.
          (4) Recommendations to president.--The Secretary shall 
        provide to the President a list of employers to receive HIRE 
        Vets Medallions not later than September 30th of each calendar 
        year for the medallions to be awarded in November of that 
        calendar year.
          (5) Notice to recipients.--The President shall notify 
        employers who will receive HIRE Vets Medallions not later than 
        October 11th of each calendar year for the medallions to be 
        awarded in November of that calendar year.

SEC. 3. SELECTION OF RECIPIENTS.

  (a) Application Review Process.--
          (1) In general.--The Secretary shall review all applications 
        received in a calendar year to determine whether an employer 
        should receive a HIRE Vets Medallion, and, if so, of what 
        level.
          (2) Application contents.--The Secretary shall require that 
        all applications provide information on the programs and other 
        efforts of applicant employers during the calendar year prior 
        to that in which the medallion is to be awarded, including the 
        categories and activities governing the level of award for 
        which the applicant is eligible under subsection (b).
          (3) Verification.--In reviewing applications, the Secretary 
        shall verify all information provided in the applications, to 
        the extent that such information is relevant in determining 
        whether or not an applicant should receive a HIRE Vets 
        Medallion or in determining the appropriate level of HIRE Vets 
        Medallion for that employer to receive.
  (b) Awards.--
          (1) Large employers.--
                  (A) In general.--The Secretary shall establish two 
                levels of HIRE Vets Medallions to be awarded to 
                employers employing 500 or more employees, to be 
                designated the ``Gold HIRE Vets Medallion'' and the 
                ``Platinum HIRE Vets Medallion''.
                  (B) Gold hire vets medallion.--No employer shall be 
                eligible to receive a Gold HIRE Vets Medallion in a 
                given calendar year unless--
                          (i) veterans constitute not less than 7 
                        percent of all employees hired by such employer 
                        during the prior calendar year;
                          (ii) such employer has established an 
                        employee veteran organization or resource group 
                        to assist new veteran employees with 
                        integration, including coaching and mentoring; 
                        and
                          (iii) such employer has established programs 
                        to enhance the leadership skills of veteran 
                        employees during their employment.
                  (C) Platinum hire vets medallion.--No employer shall 
                be eligible to receive a Platinum HIRE Vets Medallion 
                in a given calendar year unless--
                          (i) veterans constitute not less than 10 
                        percent of all employees hired by such employer 
                        during the prior calendar year;
                          (ii) such employer retains through the end of 
                        the prior calendar year not less than 85 
                        percent of veteran employees hired during the 
                        calendar year before the prior calendar year;
                          (iii) such employer employs dedicated human 
                        resources professionals to support hiring and 
                        retention of veteran employees, including 
                        efforts focused on veteran hiring and training;
                          (iv) such employer provides each of its 
                        employees serving on active duty in the United 
                        States National Guard or Reserve with 
                        compensation sufficient, in combination with 
                        the employee's active duty pay, to achieve a 
                        combined level of income commensurate with the 
                        employee's salary prior to undertaking active 
                        duty; and
                          (v) such employer has established a tuition 
                        assistance program to support veteran 
                        employees' attendance in postsecondary 
                        education during the term of their employment.
                  (D) Exemption for smaller employers.--An employer 
                shall be deemed to meet the requirements of 
                subparagraph (E)(iv) if such employer--
                          (i) employs 5,000 or fewer employees; and
                          (ii) employs at least one human resources 
                        professional whose regular work duties include 
                        those described under subparagraph (E)(iv).
                  (E) Additional criteria.--The Secretary may provide, 
                by rule, additional criteria with which to determine 
                qualifications for receipt of each level of HIRE Vets 
                Medallion.
          (2) Small- and medium-sized employers.--The Secretary shall 
        establish similar awards in order to recognize achievements in 
        supporting veterans by--
                  (A) employers with 50 or fewer employees; and
                  (B) employers with more than 50 but fewer than 500 
                employees.
  (c) Design by Secretary.--The Secretary shall establish the shape, 
form, and metallic content of each HIRE Vets Medallion.

SEC. 4. DISPLAY OF AWARD.

  (a) In General.--The recipient of a HIRE Vets Medallion may--
          (1) publicly display such medallion through the end of the 
        calendar year following receipt of such medallion; and
          (2) publicly display the HIRE Vets Medallion Certificate 
        issued in conjunction with such medallion.
  (b) Unlawful Display Prohibited.--It is unlawful for any employer to 
publicly display a HIRE Vets Medallion, in connection with, or as a 
part of, any advertisement, solicitation, business activity, or 
product--
          (1) for the purpose of conveying, or in a manner reasonably 
        calculated to convey, a false impression that the employer 
        received the medallion through the HIRE Vets Medallion Program, 
        if such employer did not receive such medallion through the 
        HIRE Vets Medallion Program; or
          (2) for the purpose of conveying, or in a manner reasonably 
        calculated to convey, a false impression that the employer 
        received the medallion through the HIRE Vets Medallion Program 
        during the preceding calendar year if it is after the end of 
        the calendar year following the calendar year in which such 
        medallion was issued to such employer through the HIRE Vets 
        Medallion Program.

SEC. 5. APPLICATION FEE AND FUNDING.

  (a) Fund Established.--There is established in the Treasury of the 
United States a fund to be designated the ``HIRE Vets Medallion Award 
Fund''.
  (b) Fee Authorized.--The Secretary may assess a reasonable fee on 
employers that apply for receipt of a HIRE Vets Medallion and the 
Secretary shall deposit such fees into the HIRE Vets Medallion Award 
Fund. The Secretary shall establish the amount of the fee such that the 
amounts collected as fees and deposited into the Fund are sufficient to 
cover the costs associated with carrying out this Act.
  (c) Use of Funds.--Amounts in the HIRE Vets Medallion Award Fund 
shall be available, without further appropriation, to the Secretary to 
carry out the HIRE Vets Medallion Program.

SEC. 6. REPORT TO CONGRESS.

  (a) Reports.--Beginning not later than two years after the date of 
enactment of this Act, the Secretary shall submit to Congress annual 
reports on--
          (1) the fees collected from applicants for HIRE Vets 
        Medallions in the prior year and any changes in fees to be 
        proposed in the present year;
          (2) the cost of administering the HIRE Vets Medallion Program 
        in the prior year;
          (3) the number of applications for HIRE Vets Medallions 
        received in the prior year; and
          (4) the HIRE Vets Medallions awarded in the prior year, 
        including the name of each employer to whom a HIRE Vets 
        Medallion was awarded and the level of medallion awarded to 
        each such employer.
  (b) Committees.--The Secretary shall provide the reports required 
under subsection (a) to the Chairman and Ranking Member of--
          (1) the Committees on Education and the Workforce and 
        Veterans' Affairs of the House of Representatives; and
          (2) the Committees on Health, Education, Labor, and Pensions 
        and Veterans' Affairs of the Senate.

SEC. 7. DEFINITIONS.

  In this Act:
   (a) Employer.--The term ``employer'' has the meaning given such term 
under section 4303 of title 38, United States Code, except that such 
term does not include--
          (1) the Federal Government;
          (2) any State, as defined in such section; or
          (3) any foreign state.
  (b) Secretary.--The term ``Secretary'' means the Secretary of Labor.
  (c) Veteran.--The term ``veteran'' has the meaning given such term 
under section 101 of title 38, United States Code.

SEC. 8. LIMITATION ON AWARDS AND BONUSES PAID TO SENIOR EXECUTIVE 
                    EMPLOYEES OF DEPARTMENT OF VETERANS AFFAIRS.

  Section 705 of the Veterans Access, Choice, and Accountability Act of 
2014 (Public Law 113-146; 38 U.S.C. 703 note) is amended by striking 
the period at the end and inserting the following: , ``of which, during 
fiscal year 2016, not more than an aggregate amount of $2,000,000 may 
be paid to employees of the Department of Veterans Affairs who are 
members of the Senior Executive Service.''.

                          Purpose and Summary

    H.R. 3286, the ``Honoring Investments in Recruiting and 
Employing American Military Veterans Act of 2015,'' was 
introduced by Representative Paul Cook of California on July 
29, 2015. H.R. 3286, as amended, would require the Department 
of Labor to establish an Honoring Investments in Recruiting and 
Employing American Military Veterans (HIRE) Vets Medallion 
Program to solicit voluntary information from employers for 
purposes of recognizing, by the award of a HIRE Vets Medallion, 
verified efforts by these employers to: (1) recruit, employ, 
and retain veterans; and (2) provide community and charitable 
services supporting the veteran community.

                  Background and Need for Legislation

    Employment of veterans has been a central focus of the 
Committee. This was especially demonstrated in 2011 with the 
passage of the VOW to Hire Heroes Act (title II of P.L. 112-56, 
125 Stat. 711, 712), which created training opportunities and 
education programs for 100,000 veterans who were out of work; 
improved licensing and credentialing opportunities for 
veterans; improved tax credits for businesses hiring veterans; 
and implemented many other provisions to help veterans gain 
meaningful employment.
    The Committee understands that no government-funded program 
can single-handedly improve veterans' employment prospects by 
itself. Rather, it takes commitment and action from the private 
sector to value the benefits of hiring veterans. On September 
13, 2011, the Committee hosted a veterans' employment summit 
where business leaders from across the country came together to 
share their best practices and strategies for recruiting and 
retaining veterans. During this summit, each participant signed 
a veterans' employment pledge, solidifying their collective 
efforts to reduce the national unemployment rate for veterans 
to less than 5 percent. Since the 2011 summit, the Subcommittee 
on Economic Opportunity has continued to highlight companies 
and sectors of the economy that are hiring veterans and are 
actively engaged in their commitment to reduce the veteran 
unemployment rate.
    Thanks to the combined efforts of this Committee, the 
Department of Labor, states, and the private sector, the 
veteran unemployment rate has dramatically decreased since 
2011. According to the U.S. Bureau of Labor Statistics, the 
unemployment rate for veterans as of May 2016 was 3.4 
percent.\1\ The Committee believes this low percentage is not 
only the result of an improving economy, but also from a 
measurable effort by American companies, both large and small, 
to hire veterans. These companies have made a concerted effort 
to hire, retain, and promote veterans because they understand 
the value that a veteran employee brings to their organization 
and their work product.
---------------------------------------------------------------------------
    \1\Employment status of the civilian population 18 years and over 
by veteran status, period of service, and sex, not seasonally adjusted, 
Bureau of Labor Statistics, U.S. Department of Labor, available at: 
http://www.bls.gov/news.release/empsit.t05.htm.
---------------------------------------------------------------------------
    Therefore, it is important to highlight the work that these 
companies have done and publicly recognize their commitment to 
hiring veterans. With this idea in mind, H.R. 3286, as amended, 
would authorize the Secretary of Labor to create the HIRE Vets 
Medallion program, which would recognize employers who hire and 
retain veterans. Employers could apply for this program and 
publicly display the award to show the public that they 
prioritize veteran hiring.
    Employers would earn either platinum or gold status based 
on requirements related to the number of veterans hired each 
year; providing pay equity for Guardsmen and Reserve employees 
who were called up to active military service; and other 
requirements. While the bill would require a small 
discretionary offset to initially set up the program, paid for 
by a monetary cap on Department of Veterans Affairs (VA) Senior 
Executive Service (SES) employee bonuses for fiscal year (FY) 
2016, the rest of the funding needed to administer this program 
would derive from the fees that employers would pay during 
their application for the award. H.R. 3286, as amended, would 
require the President of the United States to award the 
medallions to eligible businesses each year on the day that 
coincides with Veterans Day.
    The Committee believes that the creation of this program is 
a constructive way for the Federal government to recognize 
companies that have made significant efforts to hire and retain 
veterans. The Committee is also encouraged that the award will 
remain meaningful and relevant due to the strict qualifications 
that companies must fulfill to be eligible for the HIRE Vets 
Medallion.

                                Hearings

    On April 14, 2016, the Subcommittee on Economic Opportunity 
conducted a legislative hearing on various bills introduced 
during the 114th Congress, including H.R. 3286. The following 
witnesses testified:

          The Honorable David McKinley (WV-01); The Honorable 
        Paul Cook (CA-08); The Honorable Martha McSally (AZ-
        02); Mr. Curtis L. Coy, Deputy Under Secretary for 
        Economic Opportunity, Veterans Benefits Administration, 
        U.S. Department of Veterans Affairs, who was 
        accompanied by Ms. Carin Otero, Associate Deputy 
        Assistant Secretary for HR Policy and Planning, Office 
        of Human Resources and Administration, U.S. Department 
        of Veterans Affairs; Mr. Sam Shellenberger, Deputy 
        Assistant Secretary for Operations, Veterans' 
        Employment and Training Service, U.S. Department of 
        Labor; Mr. Davy Leghorn, Assistant Director, Veterans 
        Employment and Education Division, The American Legion; 
        Dr. Joseph W. Wescott, Legislative Director, National 
        Association of State Approving Agencies; Mr. Walter 
        Ochinko, Policy Director, Veterans Education Success; 
        Mr. Jared Lyon, President & CEO, Student Veterans of 
        America; and Mr. Aleks Morosky, Deputy Director, 
        National Legislative Service, Veterans of Foreign Wars 
        of the United States.

    A statement for the record was submitted by the following:

          Office of Inspector General, U.S. Department of 
        Veterans Affairs.

                       Subcommittee Consideration

    On May 11, 2016, the Subcommittee on Economic Opportunity 
met in open markup session, a quorum being present, and ordered 
H.R. 3286, as amended, favorably forwarded to the full 
Committee by voice vote. During consideration of H.R. 3286, the 
following amendment in the nature of a substitute was agreed to 
by voice vote:

          An Amendment in the Nature of a Substitute offered by 
        Mr. Brad Wenstrup of Ohio which would streamline the 
        administration of the program by eliminating two of the 
        medallion tiers from the original bill so that only the 
        gold and platinum tiers remain.

    A motion by Mr. Mark Takano of California to favorably 
forward the bill, as amended, to the full Committee was agreed 
to by voice vote.

                        Committee Consideration

    On May 18, 2016, the full Committee met in open markup 
session, a quorum being present, and ordered H.R. 3286, as 
amended, favorably reported to the House of Representatives by 
voice vote. During consideration of H.R. 3286, as amended, the 
following amendment was considered and was agreed to by a voice 
vote:

          An amendment offered by Mr. Jeff Miller of Florida, 
        added section eight of the bill, as amended, which 
        would limit bonuses for VA SES employees to $2 million 
        in FY 2016.

    A motion by Ms. Corrine Brown of Florida to favorably 
report H.R. 3286, as amended, to the House of Representatives 
was agreed to by voice vote.

                            Committee Votes

    In compliance with clause 3(b) of rule XIII of the Rules of 
the House of Representatives, no recorded votes were taken on 
amendments or in connection with ordering H.R. 3286, as 
amended, reported to the House.

                      Committee Oversight Findings

    In compliance with clause 3(c)(1) of rule XIII and clause 
(2)(b)(1) of rule X of the Rules of the House of 
Representatives, the Committee's oversight findings and 
recommendations are reflected in the descriptive portions of 
this report.

         Statement of General Performance Goals and Objectives

    In accordance with clause 3(c)(4) of rule XIII of the Rules 
of the House of Representatives, the Committee's performance 
goals and objectives are to ensure the Secretary of Labor sets 
up a program to appropriately recognize employers who hire and 
retain veterans.

   New Budget Authority, Entitlement Authority, and Tax Expenditures

    In compliance with clause 3(c)(2) of rule XIII of the Rules 
of the House of Representatives, the Committee adopts as its 
own the estimate of new budget authority, entitlement 
authority, or tax expenditures or revenues contained in the 
cost estimate prepared by the Director of the Congressional 
Budget Office pursuant to section 402 of the Congressional 
Budget Act of 1974.

                  Earmarks and Tax and Tariff Benefits

    H.R. 3286, as amended, does not contain any Congressional 
earmarks, limited tax benefits, or limited tariff benefits as 
defined in clause 9 of rule XXI of the Rules of the House of 
Representatives.

                        Committee Cost Estimate

    The Committee adopts as its own the cost estimate on H.R. 
3286, as amended, prepared by the Director of the Congressional 
Budget Office pursuant to section 402 of the Congressional 
Budget Act of 1974.

               Congressional Budget Office Cost Estimate

    Pursuant to clause 3(c)(3) of rule XIII of the Rules of the 
House of Representatives, the following is the cost estimate 
for H.R. 3286, as amended, provided by the Congressional Budget 
Office pursuant to section 402 of the Congressional Budget Act 
of 1974:

                                     U.S. Congress,
                               Congressional Budget Office,
                                     Washington, DC, July 29, 2016.
Hon. Jeff Miller,
Chairman, Committee on Veterans' Affairs,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 3286, the Honoring 
Investments in Recruiting and Employing American Military 
Veterans Act of 2016.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CHO staff contact is Ann E. 
Futrell.
            Sincerely,
                                                        Keith Hall.
    Enclosure.

H.R. 3286--Honoring Investments in Recruiting and Employing American 
        Military Veterans Act of 2016

    HR. 3286 would require the Department of Labor (DOL) to 
establish the HIRE Vets Medallion Program, within one year of 
enactment, to annually recognize businesses for their efforts 
to employ veterans. CBO expects that establishing and 
implementing the program would require DOL staff to develop 
award criteria, solicit applications for the program, review 
nominations, and select winners. Award recipients would be 
recognized with gold or platinum medallions based on the number 
of veterans they employ and their efforts to hire and train 
veterans.
    Beginning in the year after the program is established 
(2019), the bill would require DOL to assess fees on employers 
that apply to the program to cover the complete costs of the 
program. Those fees would be available without further 
appropriation to operate the program. CBO expects that those 
mandatory fees would cover the total costs of the program 
beginning in 2019. Based on the costs of administering similar 
programs and the expected number of participating companies 
(about 4,000 each year), 030 estimates that DOL would collect 
and spend about $1 million a year. Pay-as-you-go procedures 
apply because enacting the legislation would affect direct 
spending. However, because the fees would be spent on the 
program, there would be no net effect on direct spending. 
Enacting the bill would not affect revenues.
    The costs of establishing the program in 2018 would not be 
covered by the fees. CBO estimates those costs would total $1 
million, for personnel costs, medallions, and administrative 
supplies and would be subject to the availability of 
appropriated funds.
    The bill also would limit the amount of bonuses payable to 
VA employees who are in the senior executive service to $2 
million for 2016. Because CBO assumes enactment of the bill 
near the beginning of fiscal year 2017, we estimate this 
provision would have no budgetary effect.
    CBO estimates that enacting H.R. 3286 would not increase 
net direct spending or on-budget deficits in any of the four 
consecutive 10-year periods beginning in 2027.
    H.R. 3286 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act would 
impose no costs on state, local, or tribal governments.
    The CBO staff contact for this estimate is Ann E. Futrell. 
The estimate was approved by H. Samuel Papenfuss, Deputy 
Assistant Director for Budget Analysis.

                       Federal Mandates Statement

    The Committee adopts as its own the estimate of Federal 
mandates regarding H.R. 3286, as amended, prepared by the 
Director of the Congressional Budget Office pursuant to section 
423 of the Unfunded Mandates Reform Act.

                      Advisory Committee Statement

    No advisory committees within the meaning of section 5(b) 
of the Federal Advisory Committee Act would be created by H.R. 
3286, as amended.

                 Statement of Constitutional Authority

    Pursuant to Article I, section 8 of the United States 
Constitution, H.R. 3286, as amended, is authorized by Congress' 
power to ``provide for the common Defense and general Welfare 
of the United States.

                  Applicability to Legislative Branch

    The Committee finds that H.R. 3286, as amended, does not 
relate to the terms and conditions of employment or access to 
public services or accommodations within the meaning of section 
102(b)(3) of the Congressional Accountability Act.

              Statement on Duplication of Federal Programs

    Pursuant to section 3(g) of H. Res. 5, 114th Cong. (2015), 
the Committee finds that no provision of H.R. 3286, as amended, 
establishes or reauthorizes a program of the Federal Government 
known to be duplicative of another Federal program, a program 
that was included in any report from the Government 
Accountability Office to Congress pursuant to section 21 of 
Public Law 111-139, or a program related to a program 
identified in the most recent Catalog of Federal Domestic 
Assistance.

                   Disclosure of Directed Rulemaking

    Pursuant to section 3(i) of H. Res. 5, 114th Cong. (2015), 
H.R. 3286, as amended, requires the Secretary of Labor to 
prescribe regulations to establish a process for employers to 
voluntarily submit information to qualify for the HIRE Vets 
Medallion and allows the Secretary of Labor, by rule, to 
establish additional qualifications for employers to qualify 
for the HIRE Vets Medallion.

             Section-by-Section Analysis of the Legislation


Section 1. Short title

    Section 1 cites the short title of H.R. 3286, as amended, 
to be the ``Honoring Investments in Recruiting and Employing 
American Military Veterans Act of 2016.''

Section 2. HIRE Vets Medallion Program

    Section 2(a) would require that, no later than one year 
after enactment of this bill, the Secretary of Labor shall 
establish a HIRE Vets Medallion Program that would allow 
employers to voluntarily submit information to qualify for the 
HIRE Vets Medallion. The medallion would be given to employers 
based on their efforts to recruit, employ, and retain veterans, 
and employers' work to provide community and charitable 
services supporting the veteran community.
    Section 2(b) would require the Secretary to establish a 
process for employers to voluntarily submit information to 
receive the HIRE Vets Medallion. The Secretary of Labor would 
review the applications annually and would notify the President 
of the United States of the companies that meet the eligibility 
for this award. The President would be required to present the 
HIRE Vets Medallion and corresponding certificate to award 
recipients at a date that coincides with Veterans Day.
    Section 2(c) would require the application period for the 
program to be open from January 31--April 30 each calendar 
year. The Secretary would be required to finish review of the 
applications no later than August 31st of each year and would 
be required to make recommendations to the President no later 
than September 30th. The President would be required to notify 
the applicants no later than October 11th of each year.

Section 3. Selection of recipients

    Section 3(a) would require that the employer's application 
for the HIRE Vets Medallion contains information needed to make 
decisions about which award tier the employer merits and that 
the Secretary shall verify this information.
    Section 3(b) would require that, for large businesses, the 
Secretary shall establish ``gold'' and ``platinum'' levels of 
the HIRE Vets Medallions. In order to be eligible for the 
``gold'' level, an employer must: (1) have not less than 7% of 
their new hires in the previous calendar year be veterans; (2) 
establish a veteran employee association or resource group; and 
(3) establish a program to enhance leadership skills of veteran 
employees. In order to be eligible for the ``platinum'' level, 
an employer must: (1) have at least 10% of their new hires in 
the previous calendar year be veterans; (2) retain 85% of 
veteran employees in the previous calendar year; (3) employ a 
dedicated human resources professional to support the hiring 
and retention of veterans; (4) provide the monetary difference 
between a veteran employee's normal salary paid by the employer 
and the salary that an employee serving on active duty in the 
National Guard or Reserves receives; and (5) have a tuition 
assistance program to assist veteran employees' attendance in 
post-secondary education. This Section would allow for small 
businesses to be exempt from the salary requirement for 
employees who are Guardsmen and Reservists if the business 
employs 5,000 or fewer employees and employs at least one human 
resources professional whose regular work duties include 
supporting the hiring and retention of veterans. This Section 
would also require the Secretary to establish similar awards 
for small (50 employers or less) and medium (between 51 to 499 
employees) sized companies.
    Section 3(c) would require the Secretary to establish the 
shape, form, and metallic content of each HIRE Vets Medallion.

Section 4. Display of award

    Section 4(a) would authorize award recipients to publicly 
display the medallion and award certificate through the end of 
the calendar year following the recipient's receipt of the 
award.
    Section 4(b) would make it unlawful for employers to 
publicly display the award as part of any advertisement that 
would imply they received the award for any calendar year that 
they did not.

Section 5. Application fee and funding

    This Section would authorize the creation of a fund in the 
Department of Treasury to pay for the program. The Secretary 
would be authorized to assess a reasonable fee for applicants 
of this program in order to cover the costs associated with the 
program's operations.

Section 6. Report to Congress

    This Section would require that, no later than two years 
after enactment, the Secretary shall submit a report to 
relevant Congressional Committees about the results of the 
program including how many businesses have applied for and 
received the award, the amount of fees collected to cover the 
costs of the program, and the cost to run the program.

Section 7. Definitions

    This Section lays out definitions for the bill and defines 
``Employer'' as the same definition in section 4303 of title 
38, U.S.C., with the exception of Federal, state, local, and 
foreign governments. Additionally, it would define 
``Secretary'' as the Secretary of Labor and ``Veteran'' as the 
definition provided by section 101 of title 38, U.S.C.

Section 8. Limitation on awards and bonuses paid to senior executive 
        employees of Department of Veterans Affairs

    This Section would amend section 705 of the Veterans Access 
Choice, and Accountability Act of 2014 (P.L. 113-146) to limit 
bonuses paid to VA SES Employees to $2 million in fiscal year 
2016.

         Changes in Existing Law Made by the Bill, as Reported

    In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italic, existing law in which no change is 
proposed is shown in roman):

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italics, and existing law in which no 
change is proposed is shown in roman):

        VETERANS ACCESS, CHOICE, AND ACCOUNTABILITY ACT OF 2014




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TITLE VII--OTHER VETERANS MATTERS

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SEC. 705. LIMITATION ON AWARDS AND BONUSES PAID TO EMPLOYEES OF 
                    DEPARTMENT OF VETERANS AFFAIRS.

  In each of fiscal years 2015 through 2024, the Secretary of 
Veterans Affairs shall ensure that the aggregate amount of 
awards and bonuses paid by the Secretary in a fiscal year under 
chapter 45 or 53 of title 5, United States Code, or any other 
awards or bonuses authorized under such title does not exceed 
$360,000,000[.] of which, during fiscal year 2016, not more 
than an aggregate amount of $2,000,000 may be paid to employees 
of the Department of Veterans Affairs who are members of the 
Senior Executive Service.

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