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[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3082 Referred in Senate (RFS)]

109th CONGRESS
  2d Session
                                H. R. 3082

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                             July 25, 2006

Received; read twice and referred to the Committee on Veterans' Affairs

_______________________________________________________________________

                                 AN ACT

 
 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.

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Veterans Small 
Business and Memorial Affairs Act of 2006''.
    (b) Table of Contents.--The table of contents for 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.
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.

                        TITLE I--SMALL BUSINESS

SEC. 101. DEPARTMENT OF VETERANS AFFAIRS GOALS FOR PARTICIPATION BY 
              SMALL BUSINESSES OWNED AND CONTROLLED BY VETERANS IN 
              PROCUREMENT CONTRACTS.

    (a) In General.--Subchapter II of chapter 81 of title 38, United 
States Code, is amended by adding at the end the following new section:
``Sec. 8127. Small business concerns owned and controlled by veterans; 
              Department contracting goals and preferences
    ``(a) Contracting Goals.--(1) In order to increase contracting 
opportunities for small business concerns owned and controlled by 
veterans and small business concerns owned and controlled by veterans 
with service-connected disabilities, the Secretary shall--
            ``(A) establish a goal for each fiscal year for 
        participation in Department contracts (including subcontracts) 
        by small business concerns owned and controlled by veterans who 
        are not veterans with service-connected disabilities in 
        accordance with paragraph (2); and
            ``(B) establish a goal for each fiscal year for 
        participation in Department contracts (including subcontracts) 
        by small business concerns owned and controlled by veterans 
        with service-connected disabilities in accordance with 
        paragraph (3).
    ``(2) The goal for a fiscal year for participation under paragraph 
(1)(A) shall be determined by the Secretary.
    ``(3) The goal for a fiscal year for participation under paragraph 
(1)(B) shall be not less than the Government-wide goal for that fiscal 
year for participation by small business concerns owned and controlled 
by veterans with service-connected disabilities under section 15(g)(1) 
of the Small Business Act (15 U.S.C. 644(g)(1)).
    ``(4) The annual performance review of the senior official of each 
Administration of the Department and each Assistant Secretary of the 
Department with procurement authority shall include an assessment of 
whether or not that official or Assistant Secretary met the contracting 
goals established pursuant to this subsection during the year for which 
the performance review is conducted with respect to contracts awarded 
during that year for which that official or Assistant Secretary had 
responsibility. If the official or Assistant Secretary is found not to 
have met such contracting goals, the official or Assistant Secretary 
shall not receive an award known as a performance award or an award 
known as a presidential rank award for that year.
    ``(5) In the case of a subcontract of a Department contract that is 
counted for purposes of meeting a goal established pursuant to this 
section, the Secretary shall conduct a review of the contract and 
subcontract to verify that the subcontract was actually awarded to a 
business concern that may be counted for purposes of meeting that goal.
    ``(6) The Secretary shall maintain a list based on the reviews 
conducted under paragraph (5) that contains the name of the contractor 
associated with each contract reviewed under that paragraph and whether 
each subcontract awarded by the contractor that is counted for purposes 
of meeting a goal established pursuant to this section was actually 
awarded to and performed by a business concern that may be counted for 
purposes of meeting that goal. The Secretary shall make such list 
publicly available.
    ``(b) Use of Noncompetitive Procedures for Certain Small 
Contracts.--For purposes of meeting the goals under subsection (a), and 
in accordance with this section, in entering into a contract with a 
small business concern owned and controlled by veterans for an amount 
less than the simplified acquisition threshold (as defined in section 4 
of the Office of Federal Procurement Policy Act (41 U.S.C. 403)), a 
contracting officer of the Department may use procedures other than 
competitive procedures.
    ``(c) Sole Source Contracts for Contracts Above Simplified 
Acquisition Threshold.--For purposes of meeting the goals under 
subsection (a), and in accordance with this section, a contracting 
officer of the Department may award a contract to a small business 
concern owned and controlled by veterans using procedures other than 
competitive procedures if--
            ``(1) such concern is determined to be a responsible source 
        with respect to performance of such contract opportunity;
            ``(2) the anticipated award price of the contract 
        (including options) will exceed the simplified acquisition 
        threshold (as defined in section 4 of the Office of Federal 
        Procurement Policy Act (41 U.S.C. 403)) but will not exceed 
        $5,000,000; and
            ``(3) in the estimation of the contracting officer, the 
        contract award can be made at a fair and reasonable price that 
        offers best value to the United States.
    ``(d) Use of Restricted Competition.--Except as provided in 
subsections (b) and (c), for purposes of meeting the goals under 
subsection (a), and in accordance with this section, a contracting 
officer of the Department shall award contracts on the basis of 
competition restricted to small business concerns owned and controlled 
by veterans if the contracting officer has a reasonable expectation 
that two or more small business concerns owned and controlled by 
veterans will submit offers and that the award can be made at a fair 
and reasonable price that offers best value to the United States.
    ``(e) Eligibility of Small Business Concerns.--A small business 
concern may be awarded a contract under this section only if the small 
business concern and the veteran owner of the small business concern 
are listed in the database of veteran-owned businesses maintained by 
the Secretary under subsection (f).
    ``(f) Database of Veteran-Owned Businesses.--(1) Subject to 
paragraphs (2) through (6), the Secretary shall maintain a database of 
small business concerns owned and controlled by veterans and the 
veteran owners of such business concerns.
    ``(2) To be eligible for inclusion in the database, such a veteran 
shall submit to the Secretary such information as the Secretary may 
require with respect to the small business concern or the veteran.
    ``(3) Information maintained in the database shall be submitted on 
a voluntary basis by such veterans.
    ``(4) In maintaining the database, the Secretary shall carry out at 
least the following two verification functions:
            ``(A) Verification that each small business concern listed 
        in the database is owned and controlled by veterans.
            ``(B) In the case of a veteran who indicates a service-
        connected disability, verification of the service-disabled 
        status of such veteran.
    ``(5) The Secretary shall make the database available to all 
Federal departments and agencies and notify each such department and 
agency of the availability of the database.
    ``(6) If the Secretary determines that the public dissemination of 
certain types of information maintained in the database is 
inappropriate, the Secretary shall take such steps as are necessary to 
maintain such types of information in a secure and confidential manner.
    ``(g) Enforcement Penalties for Misrepresentation.--Any small 
business concern that is determined by the Secretary to have 
misrepresented the status of that concern as a small business concern 
owned and controlled by veterans or as a small business concern owned 
and controlled by service-disabled veterans for purposes of this 
subsection shall be debarred from contracting with the Department for a 
period of five years.
    ``(h) Treatment of Businesses After Death of Veteran-Owner.--(1) If 
the death of a veteran causes a small business concern to be less than 
51 percent owned by one or more veterans, the surviving spouse of such 
veteran who acquires ownership rights in such small business concern 
shall, for the period described in paragraph (2), be treated as if the 
surviving spouse were that veteran for the purpose of maintaining the 
status of the small business concern as a small business concern owned 
and controlled by veterans.
    ``(2) The period referred to in paragraph (1) is the period 
beginning on the date on which the veteran dies and ending on the 
earliest of the following dates:
            ``(A) The date on which the surviving spouse remarries.
            ``(B) The date on which the surviving spouse relinquishes 
        an ownership interest in the small business concern.
            ``(C) The date that is ten years after the date of the 
        veteran's death.
    ``(3) The death of a veteran-owner of a small business concern or a 
surviving spouse of such a veteran-owner who acquires ownership rights 
in such concern shall not be cause for termination of a contract 
awarded under this section that is in effect at the time of death of 
such owner or surviving spouse.
    ``(i) Change in Ownership or Control.--(1) Except as provided in 
subsection (h), if a small business concern that is awarded a contract 
under this section undergoes a change in management or control during 
the period for which the contract is in effect such that it is no 
longer a small business concern owned and controlled by veterans, the 
Secretary shall end the contract on the date on which the performance 
of the term of the contract is complete.
    ``(2) Such a contract that contains an option or options to extend 
the contract may be extended for a total of not more than 1 year 
pursuant to any such option.
    ``(j) Priority for Contracting Preferences.--Preferences for 
awarding contracts to small business concerns shall be applied in the 
following order of priority:
            ``(1) Contracts awarded pursuant to subsection (b), (c), or 
        (d) to small business concerns owned and controlled by veterans 
        with service-connected disabilities.
            ``(2) Contracts awarded pursuant to subsection (b), (c), or 
        (d) to small business concerns owned and controlled by veterans 
        that are not covered by subparagraph (A).
            ``(3) Contracts awarded pursuant to--
                    ``(A) section 8(a) of the Small Business Act (15 
                U.S.C. 637(a)); or
                    ``(B) section 31 of such Act (15 U.S.C. 657a).
    ``(4) Contracts awarded pursuant to any other small business 
contracting preference.
    ``(k) Quarterly Reports.--Not later than 60 days after the last day 
of a fiscal quarter, the Secretary shall submit to Congress a report on 
small business contracting during that fiscal quarter, which shall 
include the following:
            ``(1) The percentage of the total amount of all contracts 
        awarded by the Department during that fiscal quarter that were 
        awarded to small business concerns owned and controlled by 
        veterans.
            ``(2) The percentage of the total amount of all such 
        contracts awarded to small business concerns owned and 
        controlled by veterans with service-connected disabilities.
            ``(3) The percentage of the total amount of all contracts 
        awarded by each Administration of the Department during that 
        fiscal quarter that were awarded to small business concerns 
        owned and controlled by veterans.
            ``(4) The percentage of the total amount of all contracts 
        awarded by each such Administration during that fiscal quarter 
        that were awarded to small business concerns owned and 
        controlled by veterans.
    ``(l) Definitions.--In this section:
            ``(1) The term `small business concern' has the meaning 
        given that term under section 3 of the Small Business Act (15 
        U.S.C. 632).
            ``(2) The term `small business concern owned and controlled 
        by veterans' means a small business concern--
                    ``(A)(i) not less than 51 percent of which is owned 
                by one or more veterans or, in the case of a publicly 
                owned business, not less than 51 percent of the stock 
                of which is owned by one or more veterans; and
                    ``(ii) the management and daily business operations 
                of which are controlled by one or more veterans; or
                    ``(B) not less than 51 percent of which is owned by 
                one or more veterans with service-connected 
                disabilities that are permanent and total who are 
                unable to manage the daily business operations of such 
                concern or, in the case of a publicly owned business, 
                not less than 51 percent of the stock of which is owned 
                by one or more such veterans.''.
    (b) Transition Rule.--A small business concern that is listed in 
any small business database maintained by the Secretary of Veterans 
Affairs on the date of the enactment of this Act shall be presumed to 
be eligible for inclusion in the database under subsection (f) of 
section 8127 of title 38, United States Code, as added by subsection 
(a), during the period beginning on the date of the enactment of this 
Act and ending one year after the date of the enactment of this Act. 
Such a small business concern may be removed from the database during 
that period if it is found not to be a small business concern owned and 
controlled by veterans (as defined in subsection (l) of such section).
    (c) Comptroller General Report and Study.--(1) During the first 
three fiscal years for which this section is in effect, the Comptroller 
General shall conduct a study on the efforts made by the Secretary of 
Veterans Affairs to meet the contracting goals established pursuant to 
section 8127 of title 38, United States Code, as added by subsection 
(a).
    (2) On January 31 of each year during which the Comptroller General 
conducts the study under paragraph (1), the Comptroller General shall 
submit to Congress an interim report on such study, placing special 
emphasis on any structural or organizational issues within the 
Department of Veterans Affairs that might act as an impediment to 
reaching such contracting goals.
    (3) Not later than 90 days after the end of the three-year period 
during which the Comptroller General conducts the study under paragraph 
(1), the Comptroller General shall submit to Congress a report on the 
findings of such study.
    (d) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by inserting after the item relating to section 
8126 the following new item:

``8127. Small business concerns owned and controlled by veterans; 
                            Department contracting goals and 
                            preferences.''.

SEC. 102. DEPARTMENT OF VETERANS AFFAIRS CONTRACTING PRIORITY FOR 
              VETERAN-OWNED SMALL BUSINESSES.

    (a) Priority for Veteran-Owned Small Businesses.--Subchapter II of 
chapter 81 of title 38, United States Code, as amended by section 
101(a), is further amended by adding at the end the following new 
section:
``Sec. 8128. Contracting priority for small business concerns owned and 
              controlled by veterans
    ``(a) In General.--In procuring goods and services pursuant to a 
contracting preference under this title or any other provision of law, 
the Secretary shall give priority to a small business concern owned and 
controlled by veterans, if such business concern also meets the 
requirements of that contracting preference.
    ``(b) Definition.--The term `small business concern owned and 
controlled by veterans' means a small business concern that is on the 
list maintained by the Secretary under section 8127(f) of this 
title.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter, as amended by section 101, is further amended by 
inserting after the item relating to section 8127 the following new 
item:

``8128. Contracting priority for small business concerns owned and 
                            controlled by veterans.''.

SEC. 103. EFFECTIVE DATE.

    This title and the amendments made by this title shall take effect 
on the date that is 180 days after the date of the enactment of this 
Act.

                       TITLE II--MEMORIAL AFFAIRS

SEC. 201. ELIGIBILITY OF INDIAN TRIBAL ORGANIZATIONS FOR GRANTS FOR THE 
              ESTABLISHMENT OF VETERANS CEMETERIES ON TRUST LANDS.

    Section 2408 of title 38, United States Code, is amended by adding 
at the end the following new subsection:
    ``(f)(1) The Secretary may make grants under this subsection to any 
tribal organization to assist the tribal organization in establishing, 
expanding, or improving veterans' cemeteries on trust land owned by, or 
held in trust for, the tribal organization.
    ``(2) Grants under this subsection shall be made in the same 
manner, and under the same conditions, as grants to States are made 
under the preceding provisions of this section.
    ``(3) In this subsection:
            ``(A) The term `tribal organization' has the meaning given 
        that term in section 3765(4) of this title.
            ``(B) The term `trust land' has the meaning given that term 
        in section 3765(1) of this title.''.

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.

    (a) Repeal of Expiration of Government Marker Benefit and Obsolete 
Provision.--Section 2306(d) of title 38, United States Code, is amended 
by striking paragraphs (3) and (4).
    (b) Application of Government Marker Benefit to Veterans Dying on 
or After November 1, 1990.--Subsection (d) of section 502 of the 
Veterans Education and Benefits Expansion Act of 2001 (Public Law 107-
103; 38 U.S.C. 2306 note) is amended by striking ``September 11, 2001'' 
and inserting ``November 1, 1990''.
    (c) Provision of Government Headstones.--
            (1) Provision of headstones.--Subsection (d) of section 
        2306 of title 38, United States Code, is amended--
                    (A) in paragraph (1)--
                            (i) in the first sentence, by inserting 
                        ``headstone or'' after ``Government''; and
                            (ii) in the second sentence, by inserting 
                        ``headstone or'' before ``marker'' each place 
                        it appears; and
                    (B) in paragraph (2), by inserting ``headstone or'' 
                before ``marker''.
            (2) Conforming amendment.--Subsection (g)(3) of such 
        section is amended by inserting ``headstone or'' before 
        ``marker''.
    (d) Placement of Government Headstones or Markers.--Subsection 
(d)(1) of such section, as amended by subsection (c), is further 
amended by adding at the end the following new sentence: ``If placing 
the Government headstone or marker on the grave for which it is 
requested is impossible or impracticable, a headstone or marker may be 
furnished if the individual making the request for the headstone or 
marker certifies to the Secretary that the headstone or marker will be 
placed within the grounds of the cemetery in which the grave for which 
the headstone or marker is requested and as close as possible or 
practicable to that grave.''.
    (e) Delivery of Government Headstones or Markers.--Subsection 
(d)(2) of such section, as amended by subsection (c), is further 
amended by inserting before the period at the end the following: ``or 
to a receiving agent of that cemetery''.
    (f) Selection of Government Headstones and Markers.--Subsection (d) 
of such section, as amended by subsections (a), (c), (d), and (e), is 
further amended by adding at the end the following new paragraph (3):
    ``(3) The headstone or marker furnished under this subsection shall 
be the headstone or marker selected by the individual making the 
request for the headstone or marker from among all the headstones and 
markers made available by the Government and certified as acceptable 
for placement.''.
    (g) Retroactive Effective Date.--The amendments made by this 
section shall apply as if enacted in section 502 of the Veterans 
Education and Benefits Expansion Act of 2001 (Public Law 107-103; 38 
U.S.C. 2306 note).

SEC. 203. PROVISION OF GOVERNMENT MEMORIAL HEADSTONES OR MARKERS AND 
              MEMORIAL INSCRIPTIONS FOR DECEASED DEPENDENT CHILDREN OF 
              VETERANS WHOSE REMAINS ARE UNAVAILABLE FOR BURIAL.

    (a) Provision of Memorial Headstones or Markers.--Subsection (b) of 
section 2306 of title 38, United States Code, is amended--
            (1) by adding at the end of paragraph (2) the following new 
        subparagraph:
            ``(C) An eligible dependent child of a veteran.''; and
            (2) by adding at the end of paragraph (4) the following new 
        subparagraph:
            ``(C) For purposes of this section, the term `eligible 
        dependent child' means a child--
                    ``(i) who is under 21 years of age, or under 23 
                years of age if pursuing a course of instruction at an 
                approved educational institution; or
                    ``(ii) who is unmarried and became permanently 
                physically or mentally disabled and incapable of self-
                support before reaching 21 years of age, or before 
                reaching 23 years of age if pursuing a course of 
                instruction at an approved educational institution.''.
    (b) Addition of Memorial Inscription to Headstone or Marker of 
Veteran.--Subsection (f) of such section is amended by inserting ``or 
eligible dependent child'' after ``surviving spouse'' both places it 
appears.
    (c) Effective Date.--The amendments made by subsections (a) and (b) 
shall apply with respect to individuals dying after the date of the 
enactment of this Act.

              TITLE III--VETERANS' EMPLOYMENT AND TRAINING

SEC. 301. PROFESSIONAL QUALIFICATIONS FOR DISABLED VETERANS' OUTREACH 
              PROGRAM SPECIALISTS AND LOCAL VETERANS' EMPLOYMENT 
              REPRESENTATIVES.

    (a) Establishment of Guidelines by Secretary.--Section 4107 of 
title 38, United States Code, is amended by adding at the end the 
following new subsection:
    ``(d) The Secretary shall maintain guidelines for use by States in 
establishing the professional qualifications required under subclause 
(IV) of section 4102A(c)(2)(A)(i) of this title for determining the 
eligibility for employment, and eligibility for the continued 
employment, of State employees who are designated as disabled veterans' 
outreach program specialists and local veterans' employment 
representatives under this chapter.''.
    (b) Submission of Annual Professional Qualifications as a Condition 
of State Receipt of Funds Under VETS Program.--Clause (i) of section 
4102A(c)(2)(A) of such title is amended--
            (1) in subclause (II), by striking ``and'' at the end;
            (2) in subclause (III), by striking the period at the end 
        and inserting a semicolon; and
            (3) by adding at the end the following new subclauses:
                    ``(IV) the professional qualifications used by the 
                State for determining the eligibility for employment, 
                and eligibility for continued employment, of State 
                employees who are designated as disabled veterans' 
                outreach program specialists and local veterans' 
                employment representatives under this chapter; and
                    ``(V) the training required or provided by the 
                State for State employees who are designated as 
                disabled veterans' outreach program specialists and 
                local veterans' employment representatives under this 
                chapter.''.
    (c) Deadline for Establishment of Qualifications.--The Secretary of 
Labor shall establish the guidelines for professional qualifications 
required by sections 4107(d) of title 38, United States Code, as added 
by subsection (a), not later than the date that is 180 days after the 
date of the enactment of this Act.
    (d) Technical Amendments.--
            (1) Amendments.--Section 4102A of such title, as amended by 
        subsection (b), is further amended--
                    (A) in subsection (c)--
                            (i) by striking clause (ii) of paragraph 
                        (2)(B) and redesignating clause (iii) as clause 
                        (ii); and
                            (ii) in paragraph (6)--
                                    (I) by inserting ``(29 U.S.C. 2801 
                                et seq.)'' after ``the Workforce 
                                Investment Act of 1998''; and
                                    (II) by inserting ``(29 U.S.C. 49 
                                et seq.)'' after ``the Wagner-Peyser 
                                Act''; and
                    (B) in subsection (f)--
                            (i) in paragraph (1), by striking 
                        ``establish and''; and
                            (ii) by striking the heading and inserting 
                        the following: ``Performance Standards and 
                        Outcomes Measures.--''.
            (2) Effective date.--The amendment made by clause (i) of 
        paragraph (1)(A) shall take effect on October 1, 2006.

SEC. 302. RULES FOR PART-TIME EMPLOYMENT FOR DISABLED VETERANS' 
              OUTREACH PROGRAM SPECIALISTS AND LOCAL VETERANS' 
              EMPLOYMENT REPRESENTATIVES.

    (a) Disabled Veterans' Outreach Program Specialists.--Section 4103A 
of title 38, United States Code, is amended by adding at the end the 
following new subsection:
    ``(c) Part-Time Employees.--A part-time disabled veterans' outreach 
program specialist shall perform the functions of a disabled veterans' 
outreach program specialist under this section on a half-time basis.''.
    (b) Local Veterans' Employment Representatives.--Section 4104 of 
such title is amended by adding at the end the following new 
subsection:
    ``(e) Part-Time Employees.--A part-time local veterans' employment 
representative shall perform the functions of a local veterans' 
employment representative under this section on a half-time basis.''.
    (c) Effective Date.--Sections 4103A(c) and 4104(e) of title 38, 
United States Code, as added by subsections (a) and (b), shall apply 
with respect to pay periods beginning after the date that is 180 days 
after the date of the enactment of this Act.

SEC. 303. STATE LICENSING AND CERTIFICATION PROGRAMS FOR VETERANS.

    (a) Requirement as a Condition of VETS Funding.--Section 4102A(c) 
of title 38, United States Code, as amended by section 301, is further 
amended by adding at the end the following new paragraph:
    ``(8) As a condition of a grant or contract under which funds are 
made available to a State in order to carry out section 4103A or 4104 
of this title, the Secretary shall require the State to provide a 
licensing and certification program under which a veteran may receive 
credit toward a license or certification based on training or 
experience the veteran acquired while serving in the Armed Forces.''.
    (b) Effective Date.--Section 4102A(c)(8) of title 38, United States 
Code, as added by subsection (a), shall apply to a grant or contract 
under which funds are made available to a State in order to carry out 
section 4103A or 4104 of such title beginning with the second program 
year beginning after the date of the enactment of this Act.

SEC. 304. TRAINING OF NEW DISABLED VETERANS' OUTREACH PROGRAM 
              SPECIALISTS AND LOCAL VETERANS' EMPLOYMENT 
              REPRESENTATIVES BY NVTI REQUIRED.

    (a) Training Required.--Section 4102A(c) of title 38, United States 
Code, is further amended by adding after paragraph (8), as added by 
section 303, the following new paragraph:
    ``(9)(A) As a condition of a grant or contract under which funds 
are made available to a State in order to carry out section 4103A or 
4104 of this title, the Secretary shall require the State to require 
each employee hired by the State who is designated as disabled 
veterans' outreach program specialist or a local veterans' employment 
representative under this chapter to satisfactorily complete training 
provided by the National Veterans' Employment and Training Services 
Institute during the three-year period that begins on the date on which 
the employee is so designated.
    ``(B) For any employee described in subparagraph (A) who does not 
complete such training during such period, the Secretary may reduce by 
an appropriate amount the amount made available to the State employing 
that employee.''.
    (b) Submission of Employee Training Information Required.--Section 
4102A(c)(2)(A) of such title is amended--
            (1) by redesignating clause (iii) as clause (iv); and
            (2) by inserting after clause (ii) the following new clause 
        (iii):
            ``(iii) For each employee of the State who is designated as 
        disabled veterans' outreach program specialist or a local 
        veterans' employment representative under this chapter--
                    ``(I) the date on which the employee is so 
                designated; and
                    ``(II) whether the employee has satisfactorily 
                completed training provided by the National Veterans' 
                Employment and Training Services Institute.''.
    (c) Applicability.--
            (1) Applicability to new employees.--Paragraph (9) of 
        section 4102A(c) of such title, as added by subsection (a), and 
        clause (iii) of section 4102A(c)(2)(A) of such title, as added 
        by subsection (b), shall apply with respect to a State employee 
        designated as a disabled veterans' outreach program specialist 
        or a local veterans' employment representative under chapter 41 
        of such title who is so designated after the date of the 
        enactment of this Act.
            (2) Applicability to certain employees hired before date of 
        enactment.--The Secretary of Labor shall apply such paragraph 
        to a State employee designated as a disabled veterans' outreach 
        program specialist or a local veterans' employment 
        representative under chapter 41 of such title who was so 
        designated during the five-year period before the date of the 
        enactment of this Act by substituting ``during the period 
        beginning on the date on which the employee is so designated 
        and ending on the date that is five years after the date of the 
        enactment of the Veterans Small Business and Memorial Affairs 
        Act of 2006'' for ``during the three-year period that begins on 
        the date on which the employee is so designated''.

SEC. 305. MATTERS FOR INCLUSION IN ANNUAL REPORT ON VETS PROGRAM.

    Section 4107(c) of title 38, United States Code, is amended--
            (1) by redesignating paragraphs (3) through (6) as 
        paragraphs (10) through (13), respectively; and
            (2) by inserting after paragraph (2) the following new 
        paragraphs:
            ``(3) the number of veterans, disabled veterans, and 
        special disabled veterans who requested training from the 
        public employment service system;
            ``(4) the total number of eligible veterans participating 
        in each program for the provision of employment and training 
        services designed to meet the needs of eligible veterans and 
        eligible persons and the number of such veterans as a 
        percentage of the total number of participants in each such 
        program;
            ``(5) for each State, the percentage of persons seeking 
        employment in the State who are veterans;
            ``(6) for each State, the number of veterans referred to a 
        small business development center in that State and the number 
        of veterans referred to the National Veterans Business 
        Development Corporation established under section 33 of the 
        Small Business Act (15 U.S.C. 657c);
            ``(7) the total number of such veterans and disabled 
        veterans who remain employed for at least 90 days in such jobs;
            ``(8) the number of such veterans and disabled veterans who 
        remain employed for at least 180 days in such jobs;
            ``(9) the average starting wage or salary paid to such 
        veterans and disabled veterans and, if applicable, the average 
        wage or salary paid to such veterans and disabled veterans as 
        of the 180th day of employment;''.

SEC. 306. DEMONSTRATION PROJECT ON CONTRACTING FOR PLACEMENT OF CERTAIN 
              DISABLED VETERANS.

    (a) Demonstration Project.--Section 4102A of title 38, United 
States Code, as amended by sections 301, 303, and 304, is further 
amended by adding at the end the following new subsection:
    ``(h) Demonstration Project on Contracting for Placement of 
Veterans in High-Unemployment Areas.--(1) From unobligated funds made 
available for a fiscal year to carry out sections 4103A and 4104 of 
this title, the Secretary of Labor, acting through the Assistant 
Secretary of Labor for Veterans' Employment and Training, may enter 
into a contract with a nongovernmental entity to carry out job 
placement services for veterans during that fiscal year in a locality 
where the unemployment rate for veterans exceeds the national average 
unemployment rate.
    ``(2) In entering into a contract under paragraph (1), the 
Secretary of Labor may use procedures other than competitive 
procedures.
    ``(3) In entering into a contract under paragraph (1), the 
Secretary of Labor shall give priority to a small business concern 
owned and controlled by veterans that is listed in any small business 
database maintained by the Secretary of Veterans Affairs.
    ``(4) The total amount obligated under contracts entered into under 
paragraph (1) for any fiscal year may not exceed $3,000,000.
    ``(5) The authority to enter into a contract under this subsection 
shall terminate on the date that is five years after the date of the 
enactment of the Veterans Small Business and Memorial Affairs Act of 
2006.''.
    (b) GAO Report.--Not later than four years after the date of the 
enactment of this Act, the Comptroller General shall submit to the 
Committees on Veterans' Affairs of the Senate and House of 
Representatives a report on the demonstration project under subsection 
(h) of section 4102A of title 38, United States Code, as added by 
subsection (a).

SEC. 307. PERFORMANCE INCENTIVE AWARDS FOR EMPLOYMENT SERVICE OFFICES.

    (a) Provision of Incentives to Employment Service Offices.--Section 
4112 of title 38, United States Code, is amended--
            (1) in subsection (a)(1)(B), by inserting ``and employment 
        service offices'' after ``recognize eligible employees'';
            (2) in subsection (c)--
                    (A) in paragraph (1), by striking ``and'' at the 
                end;
                    (B) in paragraph (2)--
                            (i) by striking ``is'' and inserting ``in 
                        the case of such an award made to an eligible 
                        employee, shall be''; and
                            (ii) by striking the period at the end and 
                        inserting the following: ``; and''; and
                    (C) by adding at the end the following new 
                paragraph:
            ``(3) in the case of such an award made to an employment 
        service office, may be used by that employment service office 
        for any purpose.''.
    (b) Conforming Amendment.--The heading for subsection (c) of such 
section is amended to read as follows: ``Administration and Use of 
Awards.--''.

SEC. 308. DEPARTMENT OF LABOR IMPLEMENTATION OF PRIORITY OF SERVICE FOR 
              VETERANS REQUIREMENT.

    Not later than one year after the date of the enactment of this 
Act, the Secretary of Labor shall prescribe regulations to implement 
section 4215 of title 38, United States Code.

SEC. 309. DEMONSTRATION PROJECT ON CREDENTIALING AND LICENSURE OF 
              VETERANS.

    (a) Establishment of Demonstration Project.--Chapter 41 of title 
38, United States Code, is amended by adding at the end the following 
new section:
``Sec. 4114. Demonstration project on credentialing and licensure of 
              veterans
    ``(a) Establishment and Purpose of Demonstration Project.--The 
Assistant Secretary for Veterans' Employment and Training shall carry 
out a demonstration project on credentialing in accordance with this 
section for the purpose of facilitating the seamless transition of 
members of the Armed Forces from service on active duty to civilian 
employment.
    ``(b) Credentialing and Licensure of Veterans.--(1) The Assistant 
Secretary shall select not less than ten military occupational 
specialties for purposes of the demonstration project. Each such 
speciality selected by the Assistant Secretary shall require a skill or 
set of skills that is required for civilian employment in an industry 
with high growth or high worker demand.
    ``(2) The Assistant Secretary shall consult with appropriate 
Federal, State, and industry officials to identify requirements for 
credentials, certifications, and licenses that require a skill or set 
of skills required by a military occupational specialty identified 
under paragraph (1).
    ``(3) The Assistant Secretary shall analyze the requirements 
identified under paragraph (2) to determine which requirements may be 
satisfied by the skills, training, or experience acquired by members of 
the Armed Forces with the military occupational specialties selected 
under paragraph (1).
    ``(c) Elimination of Barriers to Credentialing and Licensure.--The 
Assistant Secretary shall cooperate with appropriate Federal, State, 
and industry officials to reduce or eliminate any barriers to providing 
a credential, certification, or license to a veteran who acquired any 
skill, training, or experience while serving as a member of the Armed 
Forces with a military occupational specialty selected under subsection 
(b)(1) that satisfies the Federal and State requirements for the 
credential, certification, or license.
    ``(d) Task Force.--The Assistant Secretary may establish a task 
force of individuals with appropriate expertise to provide assistance 
to the Assistant Secretary in carrying out this section.
    ``(e) Consultation.--In carrying out this section, the Assistant 
Secretary shall consult with the Secretary of Defense, the Secretary of 
Veterans Affairs, appropriate Federal and State officials, private-
sector employers, labor organizations, and industry trade associations.
    ``(f) Contract Authority.--For purposes of carrying out any part of 
the demonstration project under this section, the Assistant Secretary 
may enter into a contract with a public or private entity with 
appropriate expertise.
    ``(g) Period of Project.--The Assistant Secretary shall carry out 
the demonstration project under this section during the period 
beginning on the date that is 60 days after the date of the enactment 
of this section and ending on September 30, 2009.
    ``(h) Authorization of Appropriations.--There are authorized to be 
appropriated to the Assistant Secretary to carry out this section 
$1,000,000 for each of fiscal years 2007 through 2009.''.
    (b) Membership of Advisory Committee on Veterans Employment, 
Training, and Employer Outreach.--Section 4110(c)(1)(A) of such title 
is amended--
            (1) by striking ``Six'' and inserting ``Seven''; and
            (2) by adding at the end the following new clause:
                    ``(vii) The National Governors Association.''.
    (c) Clerical Amendment.--The table of sections at the beginning of 
chapter 41 of such title is amended by adding at the end the following 
new item:

``4114. 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.

    Section 3676(c)(13) of title 38, United States Code, is amended by 
striking ``prior to completion'' and all that follows and inserting the 
following: ``before completion and--
                    ``(A) in the case of an institution other than (i) 
                a Federal, State, or local Government institution or 
                (ii) an institution described in subparagraph (B), such 
                policy provides that the amount charged to the eligible 
                person for tuition, fees, and other charges for a 
                portion of the course shall not exceed the approximate 
                pro rata portion of the total charges for tuition, 
                fees, and other charges that the length of the 
                completed portion of the course bears to its total 
                length; and
                    ``(B) in the case of an institution that is a 
                nonaccredited public educational institution, the 
                institution has and maintains a refund policy regarding 
                the unused portion of tuition, fees, and other charges 
                that is substantially the same as the refund policy 
                followed by accredited public educational institutions 
                located within the same State as such institution.''.

SEC. 402. EXTENSION OF WORK-STUDY ALLOWANCE.

    Section 3485(a)(4) of title 38, United States Code, is amended by 
striking ``December 27, 2006'' each place it appears and inserting 
``June 30, 2007''.

SEC. 403. REPORT ON IMPROVEMENT IN ADMINISTRATION OF EDUCATIONAL 
              ASSISTANCE BENEFITS.

    Not later than 180 days after the date of the enactment of this 
Act, the Secretary of Veterans Affairs shall submit to Congress a 
report on the administration of education benefits under chapters 30, 
31, 32, 34, 35, and 36 of title 38, United States Code, and chapters 
1606 and 1607 of title 10, United States Code, that proposes methods to 
streamline the processes and procedures of administering such 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.

    (a) Restoration of Entitlement.--Section 3511(a)(2)(B)(i) of title 
38, United States Code, is amended by inserting after ``title 10'' the 
following: ``or of being involuntarily ordered to full-time National 
Guard duty under section 502(f) of title 32''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply with respect to a payment of educational assistance allowance 
made after September 11, 2001.

SEC. 405. TECHNICAL AMENDMENTS.

    Section 3485 of title 38, United States Code, is amended--
            (1) in subsection (a)(4)(E), by inserting ``or 1607'' after 
        ``chapter 1606'';
            (2) in subsection (b), by striking ``chapter 106'' and 
        inserting ``chapter 1606 or 1607''; and
            (3) in subsection (e)(1)--
                    (A) by striking ``services of the kind described in 
                clauses (A) through (E) of subsection (a)(1) of this 
                section'' and inserting ``a qualifying work-study 
                activity described in subsection (a)(4)''; and
                    (B) by striking ``chapter 106'' and inserting 
                ``chapter 1606 or 1607''.

            Passed the House of Representatives July 24, 2006.

            Attest:

                                                 KAREN L. HAAS,

                                                                 Clerk.
```