IB 

Union Calendar No. 343 

109TH CONGRESS 

2D SESSION H. R. 3082 

[Report No. 109–592] 

To amend title 38, United States Code, to require that 9 percent of procurement contracts entered into by the Department of Veterans Affairs 

be awarded to small business concerns owned by veterans, and for other 

purposes. 

IN THE HOUSE OF REPRESENTATIVES 

JUNE 28, 2005 

Mr. BOOZMAN (for himself, Ms. HERSETH, Mr. BILIRAKIS, Mr. BURTON of 

Indiana, and Mr. EVERETT) introduced the following bill; which was referred to the Committee on Veterans’ Affairs 

JULY 24, 2006 

Additional sponsors: Ms. GINNY BROWN-WAITE of Florida, Mr. FILNER, Mr. 

CARTER, Mr. MARSHALL, Mr. CAMPBELL of California, Mr. PLATTS, 

Mrs. DAVIS of California, Mr. EDWARDS, Mr. MICHAUD, Ms. CORRINE

BROWN of Florida, Mr. UDALL of New Mexico, Mr. GUTIERREZ, Mr. 

EVANS, Mr. STRICKLAND, Mr. REYES, Ms. BERKLEY, Mr. SALAZAR, Mr. 

CASE, Mr. BOSWELL, Mr. GONZALEZ, Mr. FALEOMAVAEGA, Mrs. JO ANN

DAVIS of Virginia, and Mr. LOBIONDO

JULY 24, 2006 

Reported with amendments, committed to the Committee of the Whole House 

on the State of the Union, and ordered to be printed 

[Strike out all after the enacting clause and insert the part printed in italic] 

[For text of introduced bill, see copy of bill as introduced on June 28, 2005] 

A BILL 

To amend title 38, United States Code, to require that 


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9 percent of procurement contracts entered into by the 

Department of Veterans Affairs be awarded to small 

business concerns owned by veterans, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

4 (a) SHORT TITLE.—This Act may be cited as the ‘‘Vet5 erans Small Business and Memorial Affairs Act of 2006’’. 

6 (b) TABLE OF CONTENTS.—The table of contents for 

7 this Act is as follows: 

Sec. 1. Short title; table of contents. 

TITLE I—SMALL BUSINESS 

Sec. 101. Department of Veterans Affairs goals for participation by small businesses owned and controlled by veterans in procurement contracts. 

Sec. 102. Department of Veterans Affairs contracting priority for veteran-owned 

small businesses. 

Sec. 103. Effective date. 

TITLE II—MEMORIAL AFFAIRS 

Sec. 201. Eligibility of Indian tribal organizations for grants for the establishment of veterans cemeteries on trust lands. 

Sec. 202. Repeal of expiration and expanded application of Department of Veterans Affairs benefit for Government markers or headstones for 

marked graves of veterans buried in private cemeteries. 

Sec. 203. Provision of Government memorial headstones or markers and memorial inscriptions for deceased dependent children of veterans 

whose remains are unavailable for burial. 

TITLE III—VETERANS’ EMPLOYMENT AND TRAINING 

Sec. 301. Professional qualifications for disabled veterans’ outreach program specialists and local veterans’ employment representatives. 

Sec. 302. Rules for part-time employment for disabled veterans’ outreach program 

specialists and local veterans’ employment representatives. 

Sec. 303. State licensing and certification programs for veterans. 

Sec. 304. Training of new disabled veterans’ outreach program specialists and 

local veterans’ employment representatives by NVTI required. 

Sec. 305. Matters for inclusion in annual report on VETS program. 

Sec. 306. Demonstration project on contracting for placement of certain disabled 

veterans. 


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Sec. 307. Performance incentive awards for employment service offices. 

Sec. 308. Department of Labor implementation of priority of service for veterans 

requirement. 

Sec. 309. Demonstration project on credentialing and licensure of veterans. 

TITLE IV—EDUCATION 

Sec. 401. Exception for institutions offering Government-sponsored nonaccredited 

courses to requirement of refunding unused tuition. 

Sec. 402. Extension of work-study allowance. 

Sec. 403. Report on improvement in administration of educational assistance 

benefits. 

Sec. 404. Restoration of lost entitlement for individuals who had to discontinue 

a course of education because of being ordered to full-time National Guard duty. 

Sec. 405. Technical amendments. 

1 TITLE I—SMALL BUSINESS 

2 SEC. 101. DEPARTMENT OF VETERANS AFFAIRS GOALS FOR 

3 PARTICIPATION BY SMALL BUSINESSES 

4 OWNED AND CONTROLLED BY VETERANS IN 

5 PROCUREMENT CONTRACTS. 

6 (a) IN GENERAL.—Subchapter II of chapter 81 of title 

7 38, United States Code, is amended by adding at the end 

8 the following new section: 

9 ‘‘§ 8127. Small business concerns owned and con10 trolled by veterans; Department con11 tracting goals and preferences 

12 ‘‘(a) CONTRACTING GOALS.—(1) In order to increase 

13 contracting opportunities for small business concerns owned 

14 and controlled by veterans and small business concerns 

15 owned and controlled by veterans with service-connected 

16 disabilities, the Secretary shall— 

17 ‘‘(A) establish a goal for each fiscal year for par18 ticipation in Department contracts (including subVerDate Aug 31 2005 03:21 Jul 25, 2006 Jkt 049200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6203 E:\BILLS\H3082.RH H3082

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1 contracts) by small business concerns owned and con2 trolled by veterans who are not veterans with service3 connected disabilities in accordance with paragraph 

4 (2); and 

5 ‘‘(B) establish a goal for each fiscal year for par6 ticipation in Department contracts (including sub7 contracts) by small business concerns owned and con8 trolled by veterans with service-connected disabilities 

9 in accordance with paragraph (3). 

10 ‘‘(2) The goal for a fiscal year for participation under 

11 paragraph (1)(A) shall be determined by the Secretary. 

12 ‘‘(3) The goal for a fiscal year for participation under 

13 paragraph (1)(B) shall be not less than the Government14 wide goal for that fiscal year for participation by small 

15 business concerns owned and controlled by veterans with 

16 service-connected disabilities under section 15(g)(1) of the 

17 Small Business Act (15 U.S.C. 644(g)(1)). 

18 ‘‘(4) The annual performance review of the senior offi19 cial of each Administration of the Department and each 

20 Assistant Secretary of the Department with procurement 

21 authority shall include an assessment of whether or not that 

22 official or Assistant Secretary met the contracting goals es23 tablished pursuant to this subsection during the year for 

24 which the performance review is conducted with respect to 

25 contracts awarded during that year for which that official 


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1 or Assistant Secretary had responsibility. If the official or 

2 Assistant Secretary is found not to have met such con3 tracting goals, the official or Assistant Secretary shall not 

4 receive an award known as a performance award or an 

5 award known as a presidential rank award for that year. 

6 ‘‘(5) In the case of a subcontract of a Department con7 tract that is counted for purposes of meeting a goal estab8 lished pursuant to this section, the Secretary shall conduct 

9 a review of the contract and subcontract to verify that the 

10 subcontract was actually awarded to a business concern 

11 that may be counted for purposes of meeting that goal. 

12 ‘‘(6) The Secretary shall maintain a list based on the 

13 reviews conducted under paragraph (5) that contains the 

14 name of the contractor associated with each contract re15 viewed under that paragraph and whether each subcontract 

16 awarded by the contractor that is counted for purposes of 

17 meeting a goal established pursuant to this section was ac18 tually awarded to and performed by a business concern that 

19 may be counted for purposes of meeting that goal. The Sec20 retary shall make such list publicly available. 

21 ‘‘(b) USE OF NONCOMPETITIVE PROCEDURES FOR

22 CERTAIN SMALL CONTRACTS.—For purposes of meeting the 

23 goals under subsection (a), and in accordance with this sec24 tion, in entering into a contract with a small business con25 cern owned and controlled by veterans for an amount less 


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1 than the simplified acquisition threshold (as defined in sec2 tion 4 of the Office of Federal Procurement Policy Act (41 

3 U.S.C. 403)), a contracting officer of the Department may 

4 use procedures other than competitive procedures. 

5 ‘‘(c) SOLE SOURCE CONTRACTS FOR CONTRACTS

6 ABOVE SIMPLIFIED ACQUISITION THRESHOLD.—For pur7 poses of meeting the goals under subsection (a), and in ac8 cordance with this section, a contracting officer of the De9 partment may award a contract to a small business concern 

10 owned and controlled by veterans using procedures other 

11 than competitive procedures if— 

12 ‘‘(1) such concern is determined to be a respon13 sible source with respect to performance of such con14 tract opportunity; 

15 ‘‘(2) the anticipated award price of the contract 

16 (including options) will exceed the simplified acquisi17 tion threshold (as defined in section 4 of the Office of 

18 Federal Procurement Policy Act (41 U.S.C. 403)) but 

19 will not exceed $5,000,000; and 

20 ‘‘(3) in the estimation of the contracting officer, 

21 the contract award can be made at a fair and reason22 able price that offers best value to the United States. 

23 ‘‘(d) USE OF RESTRICTED COMPETITION.—Except as 

24 provided in subsections (b) and (c), for purposes of meeting 

25 the goals under subsection (a), and in accordance with this 


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1 section, a contracting officer of the Department shall award 

2 contracts on the basis of competition restricted to small 

3 business concerns owned and controlled by veterans if the 

4 contracting officer has a reasonable expectation that two or 

5 more small business concerns owned and controlled by vet6 erans will submit offers and that the award can be made 

7 at a fair and reasonable price that offers best value to the 

8 United States. 

9 ‘‘(e) ELIGIBILITY OF SMALL BUSINESS CONCERNS.— 

10 A small business concern may be awarded a contract under 

11 this section only if the small business concern and the vet12 eran owner of the small business concern are listed in the 

13 database of veteran-owned businesses maintained by the 

14 Secretary under subsection (f). 

15 ‘‘(f) DATABASE OF VETERAN-OWNED BUSINESSES.— 

16 (1) Subject to paragraphs (2) through (6), the Secretary 

17 shall maintain a database of small business concerns owned 

18 and controlled by veterans and the veteran owners of such 

19 business concerns. 

20 ‘‘(2) To be eligible for inclusion in the database, such 

21 a veteran shall submit to the Secretary such information 

22 as the Secretary may require with respect to the small busi23 ness concern or the veteran. 

24 ‘‘(3) Information maintained in the database shall be 

25 submitted on a voluntary basis by such veterans. 


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1 ‘‘(4) In maintaining the database, the Secretary shall 

2 carry out at least the following two verification functions: 

3 ‘‘(A) Verification that each small business con4 cern listed in the database is owned and controlled by 

5 veterans. 

6 ‘‘(B) In the case of a veteran who indicates a 

7 service-connected disability, verification of the service8 disabled status of such veteran. 

9 ‘‘(5) The Secretary shall make the database available 

10 to all Federal departments and agencies and notify each 

11 such department and agency of the availability of the data12 base. 

13 ‘‘(6) If the Secretary determines that the public dis14 semination of certain types of information maintained in 

15 the database is inappropriate, the Secretary shall take such 

16 steps as are necessary to maintain such types of informa17 tion in a secure and confidential manner. 

18 ‘‘(g) ENFORCEMENT PENALTIES FOR MISREPRESENTA19 TION.—Any small business concern that is determined by 

20 the Secretary to have misrepresented the status of that con21 cern as a small business concern owned and controlled by 

22 veterans or as a small business concern owned and con23 trolled by service-disabled veterans for purposes of this sub24 section shall be debarred from contracting with the Depart25 ment for a period of five years. 


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1 ‘‘(h) TREATMENT OF BUSINESSES AFTER DEATH OF

2 VETERAN-OWNER.—(1) If the death of a veteran causes a 

3 small business concern to be less than 51 percent owned by 

4 one or more veterans, the surviving spouse of such veteran 

5 who acquires ownership rights in such small business con6 cern shall, for the period described in paragraph (2), be 

7 treated as if the surviving spouse were that veteran for the 

8 purpose of maintaining the status of the small business con9 cern as a small business concern owned and controlled by 

10 veterans. 

11 ‘‘(2) The period referred to in paragraph (1) is the 

12 period beginning on the date on which the veteran dies and 

13 ending on the earliest of the following dates: 

14 ‘‘(A) The date on which the surviving spouse re15 marries. 

16 ‘‘(B) The date on which the surviving spouse re17 linquishes an ownership interest in the small business 

18 concern. 

19 ‘‘(C) The date that is ten years after the date of 

20 the veteran’s death. 

21 ‘‘(3) The death of a veteran-owner of a small business 

22 concern or a surviving spouse of such a veteran-owner who 

23 acquires ownership rights in such concern shall not be cause 

24 for termination of a contract awarded under this section 


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1 that is in effect at the time of death of such owner or sur2 viving spouse. 

3 ‘‘(i) CHANGE IN OWNERSHIP OR CONTROL.—(1) Ex4 cept as provided in subsection (h), if a small business con5 cern that is awarded a contract under this section undergoes 

6 a change in management or control during the period for 

7 which the contract is in effect such that it is no longer a 

8 small business concern owned and controlled by veterans, 

9 the Secretary shall end the contract on the date on which 

10 the performance of the term of the contract is complete. 

11 ‘‘(2) Such a contract that contains an option or op12 tions to extend the contract may be extended for a total of 

13 not more than 1 year pursuant to any such option. 

14 ‘‘(j) PRIORITY FOR CONTRACTING PREFERENCES.— 

15 Preferences for awarding contracts to small business con16 cerns shall be applied in the following order of priority: 

17 ‘‘(1) Contracts awarded pursuant to subsection 

18 (b), (c), or (d) to small business concerns owned and 

19 controlled by veterans with service-connected disabil20 ities. 

21 ‘‘(2) Contracts awarded pursuant to subsection 

22 (b), (c), or (d) to small business concerns owned and 

23 controlled by veterans that are not covered by sub24 paragraph (A). 

25 ‘‘(3) Contracts awarded pursuant to— 


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1 ‘‘(A) section 8(a) of the Small Business Act 

2 (15 U.S.C. 637(a)); or 

3 ‘‘(B) section 31 of such Act (15 U.S.C. 

4 657a). 

5 ‘‘(4) Contracts awarded pursuant to any other small 

6 business contracting preference. 

7 ‘‘(k) QUARTERLY REPORTS.—Not later than 60 days 

8 after the last day of a fiscal quarter, the Secretary shall 

9 submit to Congress a report on small business contracting 

10 during that fiscal quarter, which shall include the following: 

11 ‘‘(1) The percentage of the total amount of all 

12 contracts awarded by the Department during that fis13 cal quarter that were awarded to small business con14 cerns owned and controlled by veterans. 

15 ‘‘(2) The percentage of the total amount of all 

16 such contracts awarded to small business concerns 

17 owned and controlled by veterans with service-con18 nected disabilities. 

19 ‘‘(3) The percentage of the total amount of all 

20 contracts awarded by each Administration of the De21 partment during that fiscal quarter that were award22 ed to small business concerns owned and controlled by 

23 veterans. 

24 ‘‘(4) The percentage of the total amount of all 

25 contracts awarded by each such Administration durVerDate Aug 31 2005 03:21 Jul 25, 2006 Jkt 049200 PO 00000 Frm 00011 Fmt 6652 Sfmt 6203 E:\BILLS\H3082.RH H3082

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1 ing that fiscal quarter that were awarded to small 

2 business concerns owned and controlled by veterans. 

3 ‘‘(l) DEFINITIONS.—In this section: 

4 ‘‘(1) The term ‘small business concern’ has the 

5 meaning given that term under section 3 of the Small 

6 Business Act (15 U.S.C. 632). 

7 ‘‘(2) The term ‘small business concern owned and 

8 controlled by veterans’ means a small business con9 cern— 

10 ‘‘(A)(i) not less than 51 percent of which is 

11 owned by one or more veterans or, in the case of 

12 a publicly owned business, not less than 51 per13 cent of the stock of which is owned by one or 

14 more veterans; and 

15 ‘‘(ii) the management and daily business 

16 operations of which are controlled by one or 

17 more veterans; or 

18 ‘‘(B) not less than 51 percent of which is 

19 owned by one or more veterans with service-con20 nected disabilities that are permanent and total 

21 who are unable to manage the daily business op22 erations of such concern or, in the case of a pub23 licly owned business, not less than 51 percent of 

24 the stock of which is owned by one or more such 

25 veterans.’’. 


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1 (b) TRANSITION RULE.—A small business concern that 

2 is listed in any small business database maintained by the 

3 Secretary of Veterans Affairs on the date of the enactment 

4 of this Act shall be presumed to be eligible for inclusion 

5 in the database under subsection (f) of section 8127 of title 

6 38, United States Code, as added by subsection (a), during 

7 the period beginning on the date of the enactment of this 

8 Act and ending one year after the date of the enactment 

9 of this Act. Such a small business concern may be removed 

10 from the database during that period if it is found not to 

11 be a small business concern owned and controlled by vet12 erans (as defined in subsection (l) of such section). 

13 (c) COMPTROLLER GENERAL REPORT AND STUDY.— 

14 (1) During the first three fiscal years for which this section 

15 is in effect, the Comptroller General shall conduct a study 

16 on the efforts made by the Secretary of Veterans Affairs to 

17 meet the contracting goals established pursuant to section 

18 8127 of title 38, United States Code, as added by subsection 

19 (a). 

20 (2) On January 31 of each year during which the 

21 Comptroller General conducts the study under paragraph 

22 (1), the Comptroller General shall submit to Congress an 

23 interim report on such study, placing special emphasis on 

24 any structural or organizational issues within the DepartVerDate Aug 31 2005 03:21 Jul 25, 2006 Jkt 049200 PO 00000 Frm 00013 Fmt 6652 Sfmt 6203 E:\BILLS\H3082.RH H3082

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1 ment of Veterans Affairs that might act as an impediment 

2 to reaching such contracting goals. 

3 (3) Not later than 90 days after the end of the three4 year period during which the Comptroller General conducts 

5 the study under paragraph (1), the Comptroller General 

6 shall submit to Congress a report on the findings of such 

7 study. 

8 (d) CLERICAL AMENDMENT.—The table of sections at 

9 the beginning of such chapter is amended by inserting after 

10 the item relating to section 8126 the following new item: 

‘‘8127. Small business concerns owned and controlled by veterans; Department 

contracting goals and preferences.’’. 

11 SEC. 102. DEPARTMENT OF VETERANS AFFAIRS CON12 TRACTING PRIORITY FOR VETERAN-OWNED 

13 SMALL BUSINESSES. 

14 (a) PRIORITY FOR VETERAN-OWNED SMALL BUSI15 NESSES.—Subchapter II of chapter 81 of title 38, United 

16 States Code, as amended by section 101(a), is further 

17 amended by adding at the end the following new section: 

18 ‘‘§ 8128. Contracting priority for small business con19 cerns owned and controlled by veterans 

20 ‘‘(a) IN GENERAL.—In procuring goods and services 

21 pursuant to a contracting preference under this title or any 

22 other provision of law, the Secretary shall give priority to 

23 a small business concern owned and controlled by veterans, 


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1 if such business concern also meets the requirements of that 

2 contracting preference. 

3 ‘‘(b) DEFINITION.—The term ‘small business concern 

4 owned and controlled by veterans’ means a small business 

5 concern that is on the list maintained by the Secretary 

6 under section 8127(f) of this title.’’. 

7 (b) CLERICAL AMENDMENT.—The table of sections at 

8 the beginning of such chapter, as amended by section 101, 

9 is further amended by inserting after the item relating to 

10 section 8127 the following new item: 

‘‘8128. Contracting priority for small business concerns owned and controlled by 

veterans.’’. 

11 SEC. 103. EFFECTIVE DATE. 

12 This title and the amendments made by this title shall 

13 take effect on the date that is 180 days after the date of 

14 the enactment of this Act. 

15 TITLE II—MEMORIAL AFFAIRS 

16 SEC. 201. ELIGIBILITY OF INDIAN TRIBAL ORGANIZATIONS 

17 FOR GRANTS FOR THE ESTABLISHMENT OF 

18 VETERANS CEMETERIES ON TRUST LANDS. 

19 Section 2408 of title 38, United States Code, is amend20 ed by adding at the end the following new subsection: 

21 ‘‘(f)(1) The Secretary may make grants under this sub22 section to any tribal organization to assist the tribal orga23 nization in establishing, expanding, or improving veterans’ 


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1 cemeteries on trust land owned by, or held in trust for, the 

2 tribal organization. 

3 ‘‘(2) Grants under this subsection shall be made in the 

4 same manner, and under the same conditions, as grants 

5 to States are made under the preceding provisions of this 

6 section. 

7 ‘‘(3) In this subsection: 

8 ‘‘(A) The term ‘tribal organization’ has the 

9 meaning given that term in section 3765(4) of this 

10 title. 

11 ‘‘(B) The term ‘trust land’ has the meaning 

12 given that term in section 3765(1) of this title.’’. 

13 SEC. 202. REPEAL OF EXPIRATION AND EXPANDED APPLI14 CATION OF DEPARTMENT OF VETERANS AF15 FAIRS BENEFIT FOR GOVERNMENT MARKERS 

16 OR HEADSTONES FOR MARKED GRAVES OF 

17 VETERANS BURIED IN PRIVATE CEMETERIES. 

18 (a) REPEAL OF EXPIRATION OF GOVERNMENT MARK19 ER BENEFIT AND OBSOLETE PROVISION.—Section 2306(d) 

20 of title 38, United States Code, is amended by striking 

21 paragraphs (3) and (4). 

22 (b) APPLICATION OF GOVERNMENT MARKER BENEFIT

23 TO VETERANS DYING ON OR AFTER NOVEMBER 1, 1990.— 

24 Subsection (d) of section 502 of the Veterans Education and 

25 Benefits Expansion Act of 2001 (Public Law 107–103; 38 


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1 U.S.C. 2306 note) is amended by striking ‘‘September 11, 

2 2001’’ and inserting ‘‘November 1, 1990’’. 

3 (c) PROVISION OF GOVERNMENT HEADSTONES.— 

4 (1) PROVISION OF HEADSTONES.—Subsection (d) 

5 of section 2306 of title 38, United States Code, is 

6 amended— 

7 (A) in paragraph (1)— 

8 (i) in the first sentence, by inserting 

9 ‘‘headstone or’’ after ‘‘Government’’; and 

10 (ii) in the second sentence, by inserting 

11 ‘‘headstone or’’ before ‘‘marker’’ each place 

12 it appears; and 

13 (B) in paragraph (2), by inserting ‘‘head14 stone or’’ before ‘‘marker’’. 

15 (2) CONFORMING AMENDMENT.—Subsection 

16 (g)(3) of such section is amended by inserting ‘‘head17 stone or’’ before ‘‘marker’’. 

18 (d) PLACEMENT OF GOVERNMENT HEADSTONES OR

19 MARKERS.—Subsection (d)(1) of such section, as amended 

20 by subsection (c), is further amended by adding at the end 

21 the following new sentence: ‘‘If placing the Government 

22 headstone or marker on the grave for which it is requested 

23 is impossible or impracticable, a headstone or marker may 

24 be furnished if the individual making the request for the 

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1 stone or marker will be placed within the grounds of the 

2 cemetery in which the grave for which the headstone or 

3 marker is requested and as close as possible or practicable 

4 to that grave.’’. 

5 (e) DELIVERY OF GOVERNMENT HEADSTONES OR

6 MARKERS.—Subsection (d)(2) of such section, as amended 

7 by subsection (c), is further amended by inserting before the 

8 period at the end the following: ‘‘or to a receiving agent 

9 of that cemetery’’. 

10 (f) SELECTION OF GOVERNMENT HEADSTONES AND

11 MARKERS.—Subsection (d) of such section, as amended by 

12 subsections (a), (c), (d), and (e), is further amended by add13 ing at the end the following new paragraph (3): 

14 ‘‘(3) The headstone or marker furnished under this 

15 subsection shall be the headstone or marker selected by the 

16 individual making the request for the headstone or marker 

17 from among all the headstones and markers made available 

18 by the Government and certified as acceptable for place19 ment.’’. 

20 (g) RETROACTIVE EFFECTIVE DATE.—The amend21 ments made by this section shall apply as if enacted in sec22 tion 502 of the Veterans Education and Benefits Expansion 

23 Act of 2001 (Public Law 107–103; 38 U.S.C. 2306 note). 


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1 SEC. 203. PROVISION OF GOVERNMENT MEMORIAL 

2 HEADSTONES OR MARKERS AND MEMORIAL 

3 INSCRIPTIONS FOR DECEASED DEPENDENT 

4 CHILDREN OF VETERANS WHOSE REMAINS 

5 ARE UNAVAILABLE FOR BURIAL. 

6 (a) PROVISION OF MEMORIAL HEADSTONES OR MARK7 ERS.—Subsection (b) of section 2306 of title 38, United 

8 States Code, is amended— 

9 (1) by adding at the end of paragraph (2) the 

10 following new subparagraph: 

11 ‘‘(C) An eligible dependent child of a veteran.’’; 

12 and 

13 (2) by adding at the end of paragraph (4) the 

14 following new subparagraph: 

15 ‘‘(C) For purposes of this section, the term ‘eligi16 ble dependent child’ means a child— 

17 ‘‘(i) who is under 21 years of age, or under 

18 23 years of age if pursuing a course of instruc19 tion at an approved educational institution; or 

20 ‘‘(ii) who is unmarried and became perma21 nently physically or mentally disabled and in22 capable of self-support before reaching 21 years 

23 of age, or before reaching 23 years of age if pur24 suing a course of instruction at an approved 

25 educational institution.’’. 


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1 (b) ADDITION OF MEMORIAL INSCRIPTION TO HEAD2 STONE OR MARKER OF VETERAN.—Subsection (f) of such 

3 section is amended by inserting ‘‘or eligible dependent 

4 child’’ after ‘‘surviving spouse’’ both places it appears. 

5 (c) EFFECTIVE DATE.—The amendments made by sub6 sections (a) and (b) shall apply with respect to individuals 

7 dying after the date of the enactment of this Act. 

8 TITLE III—VETERANS’

9 EMPLOYMENT AND TRAINING 

10 SEC. 301. PROFESSIONAL QUALIFICATIONS FOR DISABLED 

11 VETERANS’ OUTREACH PROGRAM SPECIAL12 ISTS AND LOCAL VETERANS’ EMPLOYMENT 

13 REPRESENTATIVES. 

14 (a) ESTABLISHMENT OF GUIDELINES BY SEC15 RETARY.—Section 4107 of title 38, United States Code, is 

16 amended by adding at the end the following new subsection: 

17 ‘‘(d) The Secretary shall maintain guidelines for use 

18 by States in establishing the professional qualifications re19 quired under subclause (IV) of section 4102A(c)(2)(A)(i) of 

20 this title for determining the eligibility for employment, 

21 and eligibility for the continued employment, of State em22 ployees who are designated as disabled veterans’ outreach 

23 program specialists and local veterans’ employment rep24 resentatives under this chapter.’’. 


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1 (b) SUBMISSION OF ANNUAL PROFESSIONAL QUALI2 FICATIONS AS A CONDITION OF STATE RECEIPT OF FUNDS

3 UNDER VETS PROGRAM.—Clause (i) of section 

4 4102A(c)(2)(A) of such title is amended— 

5 (1) in subclause (II), by striking ‘‘and’’ at the 

6 end; 

7 (2) in subclause (III), by striking the period at 

8 the end and inserting a semicolon; and 

9 (3) by adding at the end the following new sub10 clauses: 

11 ‘‘(IV) the professional qualifications used by 

12 the State for determining the eligibility for em13 ployment, and eligibility for continued employ14 ment, of State employees who are designated as 

15 disabled veterans’ outreach program specialists 

16 and local veterans’ employment representatives 

17 under this chapter; and 

18 ‘‘(V) the training required or provided by 

19 the State for State employees who are designated 

20 as disabled veterans’ outreach program special21 ists and local veterans’ employment representa22 tives under this chapter.’’. 

23 (c) DEADLINE FOR ESTABLISHMENT OF QUALIFICA24 TIONS.—The Secretary of Labor shall establish the guide25 lines for professional qualifications required by sections 


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1 4107(d) of title 38, United States Code, as added by sub2 section (a), not later than the date that is 180 days after 

3 the date of the enactment of this Act. 

4 (d) TECHNICAL AMENDMENTS.— 

5 (1) AMENDMENTS.—Section 4102A of such title, 

6 as amended by subsection (b), is further amended— 

7 (A) in subsection (c)— 

8 (i) by striking clause (ii) of paragraph 

9 (2)(B) and redesignating clause (iii) as 

10 clause (ii); and 

11 (ii) in paragraph (6)— 

12 (I) by inserting ‘‘(29 U.S.C. 2801 

13 et seq.)’’ after ‘‘the Workforce Invest14 ment Act of 1998’’; and 

15 (II) by inserting ‘‘(29 U.S.C. 49 

16 et seq.)’’ after ‘‘the Wagner-Peyser 

17 Act’’; and 

18 (B) in subsection (f)— 

19 (i) in paragraph (1), by striking ‘‘es20 tablish and’’; and 

21 (ii) by striking the heading and insert22 ing the following: ‘‘PERFORMANCE STAND23 ARDS AND OUTCOMES MEASURES.—’’. 


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1 (2) EFFECTIVE DATE.—The amendment made by 

2 clause (i) of paragraph (1)(A) shall take effect on Oc3 tober 1, 2006. 

4 SEC. 302. RULES FOR PART-TIME EMPLOYMENT FOR DIS5 ABLED VETERANS’ OUTREACH PROGRAM SPE6 CIALISTS AND LOCAL VETERANS’ EMPLOY7 MENT REPRESENTATIVES. 

8 (a) DISABLED VETERANS’ OUTREACH PROGRAM SPE9 CIALISTS.—Section 4103A of title 38, United States Code, 

10 is amended by adding at the end the following new sub11 section: 

12 ‘‘(c) PART-TIME EMPLOYEES.—A part-time disabled 

13 veterans’ outreach program specialist shall perform the 

14 functions of a disabled veterans’ outreach program spe15 cialist under this section on a half-time basis.’’. 

16 (b) LOCAL VETERANS’ EMPLOYMENT REPRESENTA17 TIVES.—Section 4104 of such title is amended by adding 

18 at the end the following new subsection: 

19 ‘‘(e) PART-TIME EMPLOYEES.—A part-time local vet20 erans’ employment representative shall perform the func21 tions of a local veterans’ employment representative under 

22 this section on a half-time basis.’’. 

23 (c) EFFECTIVE DATE.—Sections 4103A(c) and 4104(e) 

24 of title 38, United States Code, as added by subsections (a) 

25 and (b), shall apply with respect to pay periods beginning 


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1 after the date that is 180 days after the date of the enact2 ment of this Act. 

3 SEC. 303. STATE LICENSING AND CERTIFICATION PRO4 GRAMS FOR VETERANS. 

5 (a) REQUIREMENT AS A CONDITION OF VETS FUND6 ING.—Section 4102A(c) of title 38, United States Code, as 

7 amended by section 301, is further amended by adding at 

8 the end the following new paragraph: 

9 ‘‘(8) As a condition of a grant or contract under which 

10 funds are made available to a State in order to carry out 

11 section 4103A or 4104 of this title, the Secretary shall re12 quire the State to provide a licensing and certification pro13 gram under which a veteran may receive credit toward a 

14 license or certification based on training or experience the 

15 veteran acquired while serving in the Armed Forces.’’. 

16 (b) EFFECTIVE DATE.—Section 4102A(c)(8) of title 

17 38, United States Code, as added by subsection (a), shall 

18 apply to a grant or contract under which funds are made 

19 available to a State in order to carry out section 4103A 

20 or 4104 of such title beginning with the second program 

21 year beginning after the date of the enactment of this Act. 


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1 SEC. 304. TRAINING OF NEW DISABLED VETERANS’ OUT2 REACH PROGRAM SPECIALISTS AND LOCAL 

3 VETERANS’ EMPLOYMENT REPRESENTATIVES 

4 BY NVTI REQUIRED. 

5 (a) TRAINING REQUIRED.—Section 4102A(c) of title 

6 38, United States Code, is further amended by adding after 

7 paragraph (8), as added by section 303, the following new 

8 paragraph: 

9 ‘‘(9)(A) As a condition of a grant or contract under 

10 which funds are made available to a State in order to carry 

11 out section 4103A or 4104 of this title, the Secretary shall 

12 require the State to require each employee hired by the State 

13 who is designated as disabled veterans’ outreach program 

14 specialist or a local veterans’ employment representative 

15 under this chapter to satisfactorily complete training pro16 vided by the National Veterans’ Employment and Training 

17 Services Institute during the three-year period that begins 

18 on the date on which the employee is so designated. 

19 ‘‘(B) For any employee described in subparagraph (A) 

20 who does not complete such training during such period, 

21 the Secretary may reduce by an appropriate amount the 

22 amount made available to the State employing that em23 ployee.’’. 

24 (b) SUBMISSION OF EMPLOYEE TRAINING INFORMA25 TION REQUIRED.—Section 4102A(c)(2)(A) of such title is 

26 amended— 


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1 (1) by redesignating clause (iii) as clause (iv); 

2 and 

3 (2) by inserting after clause (ii) the following 

4 new clause (iii): 

5 ‘‘(iii) For each employee of the State who is des6 ignated as disabled veterans’ outreach program spe7 cialist or a local veterans’ employment representative 

8 under this chapter— 

9 ‘‘(I) the date on which the employee is so 

10 designated; and 

11 ‘‘(II) whether the employee has satisfac12 torily completed training provided by the Na13 tional Veterans’ Employment and Training 

14 Services Institute.’’. 

15 (c) APPLICABILITY.— 

16 (1) APPLICABILITY TO NEW EMPLOYEES.—Para17 graph (9) of section 4102A(c) of such title, as added 

18 by subsection (a), and clause (iii) of section 

19 4102A(c)(2)(A) of such title, as added by subsection 

20 (b), shall apply with respect to a State employee des21 ignated as a disabled veterans’ outreach program spe22 cialist or a local veterans’ employment representative 

23 under chapter 41 of such title who is so designated 

24 after the date of the enactment of this Act. 


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1 (2) APPLICABILITY TO CERTAIN EMPLOYEES

2 HIRED BEFORE DATE OF ENACTMENT.—The Secretary 

3 of Labor shall apply such paragraph to a State em4 ployee designated as a disabled veterans’ outreach 

5 program specialist or a local veterans’ employment 

6 representative under chapter 41 of such title who was 

7 so designated during the five-year period before the 

8 date of the enactment of this Act by substituting 

9 ‘‘during the period beginning on the date on which 

10 the employee is so designated and ending on the date 

11 that is five years after the date of the enactment of 

12 the Veterans Small Business and Memorial Affairs 

13 Act of 2006’’ for ‘‘during the three-year period that 

14 begins on the date on which the employee is so des15 ignated’’. 

16 SEC. 305. MATTERS FOR INCLUSION IN ANNUAL REPORT ON 

17 VETS PROGRAM. 

18 Section 4107(c) of title 38, United States Code, is 

19 amended— 

20 (1) by redesignating paragraphs (3) through (6) 

21 as paragraphs (10) through (13), respectively; and 

22 (2) by inserting after paragraph (2) the fol23 lowing new paragraphs: 


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1 ‘‘(3) the number of veterans, disabled veterans, 

2 and special disabled veterans who requested training 

3 from the public employment service system; 

4 ‘‘(4) the total number of eligible veterans partici5 pating in each program for the provision of employ6 ment and training services designed to meet the needs 

7 of eligible veterans and eligible persons and the num8 ber of such veterans as a percentage of the total num9 ber of participants in each such program; 

10 ‘‘(5) for each State, the percentage of persons 

11 seeking employment in the State who are veterans; 

12 ‘‘(6) for each State, the number of veterans re13 ferred to a small business development center in that 

14 State and the number of veterans referred to the Na15 tional Veterans Business Development Corporation es16 tablished under section 33 of the Small Business Act 

17 (15 U.S.C. 657c); 

18 ‘‘(7) the total number of such veterans and dis19 abled veterans who remain employed for at least 90 

20 days in such jobs; 

21 ‘‘(8) the number of such veterans and disabled 

22 veterans who remain employed for at least 180 days 

23 in such jobs; 

24 ‘‘(9) the average starting wage or salary paid to 

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1 ble, the average wage or salary paid to such veterans 

2 and disabled veterans as of the 180th day of employ3 ment;’’. 

4 SEC. 306. DEMONSTRATION PROJECT ON CONTRACTING 

5 FOR PLACEMENT OF CERTAIN DISABLED VET6 ERANS. 

7 (a) DEMONSTRATION PROJECT.—Section 4102A of 

8 title 38, United States Code, as amended by sections 301, 

9 303, and 304, is further amended by adding at the end the 

10 following new subsection: 

11 ‘‘(h) DEMONSTRATION PROJECT ON CONTRACTING FOR

12 PLACEMENT OF VETERANS IN HIGH-UNEMPLOYMENT

13 AREAS.—(1) From unobligated funds made available for a 

14 fiscal year to carry out sections 4103A and 4104 of this 

15 title, the Secretary of Labor, acting through the Assistant 

16 Secretary of Labor for Veterans’ Employment and Train17 ing, may enter into a contract with a nongovernmental en18 tity to carry out job placement services for veterans during 

19 that fiscal year in a locality where the unemployment rate 

20 for veterans exceeds the national average unemployment 

21 rate. 

22 ‘‘(2) In entering into a contract under paragraph (1), 

23 the Secretary of Labor may use procedures other than com24 petitive procedures. 


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1 ‘‘(3) In entering into a contract under paragraph (1), 

2 the Secretary of Labor shall give priority to a small busi3 ness concern owned and controlled by veterans that is listed 

4 in any small business database maintained by the Sec5 retary of Veterans Affairs. 

6 ‘‘(4) The total amount obligated under contracts en7 tered into under paragraph (1) for any fiscal year may not 

8 exceed $3,000,000. 

9 ‘‘(5) The authority to enter into a contract under this 

10 subsection shall terminate on the date that is five years after 

11 the date of the enactment of the Veterans Small Business 

12 and Memorial Affairs Act of 2006.’’. 

13 (b) GAO REPORT.—Not later than four years after the 

14 date of the enactment of this Act, the Comptroller General 

15 shall submit to the Committees on Veterans’ Affairs of the 

16 Senate and House of Representatives a report on the dem17 onstration project under subsection (h) of section 4102A of 

18 title 38, United States Code, as added by subsection (a). 

19 SEC. 307. PERFORMANCE INCENTIVE AWARDS FOR EMPLOY20 MENT SERVICE OFFICES. 

21 (a) PROVISION OF INCENTIVES TO EMPLOYMENT SERV22 ICE OFFICES.—Section 4112 of title 38, United States Code, 

23 is amended— 


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1 (1) in subsection (a)(1)(B), by inserting ‘‘and 

2 employment service offices’’ after ‘‘recognize eligible 

3 employees’’; 

4 (2) in subsection (c)— 

5 (A) in paragraph (1), by striking ‘‘and’’ at 

6 the end; 

7 (B) in paragraph (2)— 

8 (i) by striking ‘‘is’’ and inserting ‘‘in 

9 the case of such an award made to an eligi10 ble employee, shall be’’; and 

11 (ii) by striking the period at the end 

12 and inserting the following: ‘‘; and’’; and 

13 (C) by adding at the end the following new 

14 paragraph: 

15 ‘‘(3) in the case of such an award made to an 

16 employment service office, may be used by that em17 ployment service office for any purpose.’’. 

18 (b) CONFORMING AMENDMENT.—The heading for sub19 section (c) of such section is amended to read as follows: 

20 ‘‘ADMINISTRATION AND USE OF AWARDS.—’’. 

21 SEC. 308. DEPARTMENT OF LABOR IMPLEMENTATION OF 

22 PRIORITY OF SERVICE FOR VETERANS RE23 QUIREMENT. 

24 Not later than one year after the date of the enactment 

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1 tions to implement section 4215 of title 38, United States 

2 Code. 

3 SEC. 309. DEMONSTRATION PROJECT ON CREDENTIALING 

4 AND LICENSURE OF VETERANS. 

5 (a) ESTABLISHMENT OF DEMONSTRATION PROJECT.— 

6 Chapter 41 of title 38, United States Code, is amended by 

7 adding at the end the following new section: 

8 ‘‘§ 4114. Demonstration project on credentialing and 

9 licensure of veterans 

10 ‘‘(a) ESTABLISHMENT AND PURPOSE OF DEMONSTRA11 TION PROJECT.—The Assistant Secretary for Veterans’ Em12 ployment and Training shall carry out a demonstration 

13 project on credentialing in accordance with this section for 

14 the purpose of facilitating the seamless transition of mem15 bers of the Armed Forces from service on active duty to ci16 vilian employment. 

17 ‘‘(b) CREDENTIALING AND LICENSURE OF VET18 ERANS.—(1) The Assistant Secretary shall select not less 

19 than ten military occupational specialties for purposes of 

20 the demonstration project. Each such speciality selected by 

21 the Assistant Secretary shall require a skill or set of skills 

22 that is required for civilian employment in an industry 

23 with high growth or high worker demand. 

24 ‘‘(2) The Assistant Secretary shall consult with appro25 priate Federal, State, and industry officials to identify reVerDate Aug 31 2005 03:21 Jul 25, 2006 Jkt 049200 PO 00000 Frm 00032 Fmt 6652 Sfmt 6203 E:\BILLS\H3082.RH H3082

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1 quirements for credentials, certifications, and licenses that 

2 require a skill or set of skills required by a military occupa3 tional specialty identified under paragraph (1). 

4 ‘‘(3) The Assistant Secretary shall analyze the require5 ments identified under paragraph (2) to determine which 

6 requirements may be satisfied by the skills, training, or ex7 perience acquired by members of the Armed Forces with the 

8 military occupational specialties selected under paragraph 

9 (1). 

10 ‘‘(c) ELIMINATION OF BARRIERS TO CREDENTIALING

11 AND LICENSURE.—The Assistant Secretary shall cooperate 

12 with appropriate Federal, State, and industry officials to 

13 reduce or eliminate any barriers to providing a credential, 

14 certification, or license to a veteran who acquired any skill, 

15 training, or experience while serving as a member of the 

16 Armed Forces with a military occupational specialty se17 lected under subsection (b)(1) that satisfies the Federal and 

18 State requirements for the credential, certification, or li19 cense. 

20 ‘‘(d) TASK FORCE.—The Assistant Secretary may es21 tablish a task force of individuals with appropriate exper22 tise to provide assistance to the Assistant Secretary in car23 rying out this section. 

24 ‘‘(e) CONSULTATION.—In carrying out this section, the 

25 Assistant Secretary shall consult with the Secretary of DeVerDate Aug 31 2005 03:21 Jul 25, 2006 Jkt 049200 PO 00000 Frm 00033 Fmt 6652 Sfmt 6203 E:\BILLS\H3082.RH H3082

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1 fense, the Secretary of Veterans Affairs, appropriate Federal 

2 and State officials, private-sector employers, labor organi3 zations, and industry trade associations. 

4 ‘‘(f) CONTRACT AUTHORITY.—For purposes of car5 rying out any part of the demonstration project under this 

6 section, the Assistant Secretary may enter into a contract 

7 with a public or private entity with appropriate expertise. 

8 ‘‘(g) PERIOD OF PROJECT.—The Assistant Secretary 

9 shall carry out the demonstration project under this section 

10 during the period beginning on the date that is 60 days 

11 after the date of the enactment of this section and ending 

12 on September 30, 2009. 

13 ‘‘(h) AUTHORIZATION OF APPROPRIATIONS.—There 

14 are authorized to be appropriated to the Assistant Secretary 

15 to carry out this section $1,000,000 for each of fiscal years 

16 2007 through 2009.’’. 

17 (b) MEMBERSHIP OF ADVISORY COMMITTEE ON VET18 ERANS EMPLOYMENT, TRAINING, AND EMPLOYER OUT19 REACH.—Section 4110(c)(1)(A) of such title is amended— 

20 (1) by striking ‘‘Six’’ and inserting ‘‘Seven’’; 

21 and 

22 (2) by adding at the end the following new 

23 clause: 

24 ‘‘(vii) The National Governors Associa25 tion.’’. 


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1 (c) CLERICAL AMENDMENT.—The table of sections at 

2 the beginning of chapter 41 of such title is amended by add3 ing at the end the following new item: 

‘‘4114. Demonstration project on credentialing and licensure of veterans.’’. 

4 TITLE IV—EDUCATION 

5 SEC. 401. EXCEPTION FOR INSTITUTIONS OFFERING GOV6 ERNMENT-SPONSORED NONACCREDITED 

7 COURSES TO REQUIREMENT OF REFUNDING 

8 UNUSED TUITION. 

9 Section 3676(c)(13) of title 38, United States Code, is 

10 amended by striking ‘‘prior to completion’’ and all that fol11 lows and inserting the following: ‘‘before completion and— 

12 ‘‘(A) in the case of an institution other than 

13 (i) a Federal, State, or local Government institu14 tion or (ii) an institution described in subpara15 graph (B), such policy provides that the amount 

16 charged to the eligible person for tuition, fees, 

17 and other charges for a portion of the course 

18 shall not exceed the approximate pro rata por19 tion of the total charges for tuition, fees, and 

20 other charges that the length of the completed 

21 portion of the course bears to its total length; 

22 and 

23 ‘‘(B) in the case of an institution that is a 

24 nonaccredited public educational institution, the 

25 institution has and maintains a refund policy 


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1 regarding the unused portion of tuition, fees, and 

2 other charges that is substantially the same as 

3 the refund policy followed by accredited public 

4 educational institutions located within the same 

5 State as such institution.’’. 

6 SEC. 402. EXTENSION OF WORK-STUDY ALLOWANCE. 

7 Section 3485(a)(4) of title 38, United States Code, is 

8 amended by striking ‘‘December 27, 2006’’ each place it ap9 pears and inserting ‘‘June 30, 2007’’. 

10 SEC. 403. REPORT ON IMPROVEMENT IN ADMINISTRATION 

11 OF EDUCATIONAL ASSISTANCE BENEFITS. 

12 Not later than 180 days after the date of the enactment 

13 of this Act, the Secretary of Veterans Affairs shall submit 

14 to Congress a report on the administration of education 

15 benefits under chapters 30, 31, 32, 34, 35, and 36 of title 

16 38, United States Code, and chapters 1606 and 1607 of title 

17 10, United States Code, that proposes methods to streamline 

18 the processes and procedures of administering such benefits. 

19 SEC. 404. RESTORATION OF LOST ENTITLEMENT FOR INDI20 VIDUALS WHO HAD TO DISCONTINUE A 

21 COURSE OF EDUCATION BECAUSE OF BEING 

22 ORDERED TO FULL-TIME NATIONAL GUARD 

23 DUTY. 

24 (a) RESTORATION OF ENTITLEMENT.—Section 

25 3511(a)(2)(B)(i) of title 38, United States Code, is amended 


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1 by inserting after ‘‘title 10’’ the following: ‘‘or of being in2 voluntarily ordered to full-time National Guard duty under 

3 section 502(f) of title 32’’. 

4 (b) EFFECTIVE DATE.—The amendment made by sub5 section (a) shall apply with respect to a payment of edu6 cational assistance allowance made after September 11, 

7 2001. 

8 SEC. 405. TECHNICAL AMENDMENTS. 

9 Section 3485 of title 38, United States Code, is amend10 ed— 

11 (1) in subsection (a)(4)(E), by inserting ‘‘or 

12 1607’’ after ‘‘chapter 1606’’; 

13 (2) in subsection (b), by striking ‘‘chapter 106’’ 

14 and inserting ‘‘chapter 1606 or 1607’’; and 

15 (3) in subsection (e)(1)— 

16 (A) by striking ‘‘services of the kind de17 scribed in clauses (A) through (E) of subsection 

18 (a)(1) of this section’’ and inserting ‘‘a quali19 fying work-study activity described in subsection 

20 (a)(4)’’; and 

21 (B) by striking ‘‘chapter 106’’ and inserting 

22 ‘‘chapter 1606 or 1607’’. 

Amend the title so as to read: ‘‘A bill to amend title 

38, United States Code, to make improvements to small 

business, memorial affairs, education, and employment 

programs for veterans, and for other purposes.’’. 


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Union Calendar No. 343 

109TH CONGRESS 

2D SESSION H. R. 3082 

[Report No. 109

–592] 

A BILL 

To amend title 38, United States Code, to require 

veterans, and for other purposes. awarded to small business concerns owned by into by the Department of Veterans Affairs be that 9 percent of procurement contracts entered 

JULY 24, 2006 

Reported with amendments, committed to the Committee 

dered to be printed of the Whole House on the State of the Union, and orVerDate Aug 31 2005 03:21 Jul 25, 2006 Jkt 049200 PO 00000 Frm 00038 Fmt 6651 Sfmt 6651 E:\BILLS\H3082.RH H3082

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