109TH CONGRESS 

2D SESSION H. R. 3082

AN ACT

To amend title 38, United States Code, to make 

veterans, and for other purposes. fairs, education, and employment programs for improvements to small business, memorial af-

109TH CONGRESS 

2D SESSION H. R. 3082

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.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,
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1 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

2 (a) SHORT TITLE.—This Act may be cited as the 

3 ‘‘Veterans Small Business and Memorial Affairs Act of 

4 2006’’. 

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

6 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 veteranowned 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. 
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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 

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

8 end 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 

14 owned and controlled by veterans and small business con15 cerns owned and controlled by veterans with service-con16 nected disabilities, the Secretary shall—

17 ‘‘(A) establish a goal for each fiscal year for 

18 participation in Department contracts (including 

19 subcontracts) by small business concerns owned and 

20 controlled by veterans who are not veterans with 

21 service-connected disabilities in accordance with 

22 paragraph (2); and 
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1 ‘‘(B) establish a goal for each fiscal year for 

2 participation in Department contracts (including 

3 subcontracts) by small business concerns owned and 

4 controlled by veterans with service-connected disabil5 ities in accordance with paragraph (3). 

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

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

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

9 paragraph (1)(B) shall be not less than the Government10 wide goal for that fiscal year for participation by small 

11 business concerns owned and controlled by veterans with 

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

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

14 ‘‘(4) The annual performance review of the senior of15 ficial of each Administration of the Department and each 

16 Assistant Secretary of the Department with procurement 

17 authority shall include an assessment of whether or not 

18 that official or Assistant Secretary met the contracting 

19 goals established pursuant to this subsection during the 

20 year for which the performance review is conducted with 

21 respect to contracts awarded during that year for which 

22 that official or Assistant Secretary had responsibility. If 

23 the official or Assistant Secretary is found not to have 

24 met such contracting goals, the official or Assistant Sec25 retary shall not receive an award known as a performance 
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1 award or an award known as a presidential rank award 

2 for that year. 

3 ‘‘(5) In the case of a subcontract of a Department 

4 contract that is counted for purposes of meeting a goal 

5 established pursuant to this section, the Secretary shall 

6 conduct a review of the contract and subcontract to verify 

7 that the subcontract was actually awarded to a business 

8 concern that may be counted for purposes of meeting that 

9 goal. 

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

11 reviews conducted under paragraph (5) that contains the 

12 name of the contractor associated with each contract re13 viewed under that paragraph and whether each sub14 contract awarded by the contractor that is counted for 

15 purposes of meeting a goal established pursuant to this 

16 section was actually awarded to and performed by a busi17 ness concern that may be counted for purposes of meeting 

18 that goal. The Secretary shall make such list publicly 

19 available. 

20 ‘‘(b) USE OF NONCOMPETITIVE PROCEDURES FOR

21 CERTAIN SMALL CONTRACTS.—For purposes of meeting 

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

23 section, in entering into a contract with a small business 

24 concern owned and controlled by veterans for an amount 

25 less than the simplified acquisition threshold (as defined 
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1 in section 4 of the Office of Federal Procurement Policy 

2 Act (41 U.S.C. 403)), a contracting officer of the Depart3 ment may use procedures other than competitive proce4 dures. 

5 ‘‘(c) SOLE SOURCE CONTRACTS FOR CONTRACTS

6 ABOVE SIMPLIFIED ACQUISITION THRESHOLD.—For pur7 poses of meeting the goals under subsection (a), and in 

8 accordance with this section, a contracting officer of the 

9 Department may award a contract to a small business 

10 concern owned and controlled by veterans using proce11 dures other 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 

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

19 but 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 rea22 sonable price that offers best value to the United 

23 States. 

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

25 provided in subsections (b) and (c), for purposes of meet-
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1 ing the goals under subsection (a), and in accordance with 

2 this section, a contracting officer of the Department shall 

3 award contracts on the basis of competition restricted to 

4 small business concerns owned and controlled by veterans 

5 if the contracting officer has a reasonable expectation that 

6 two or more small business concerns owned and controlled 

7 by veterans will submit offers and that the award can be 

8 made at a fair and reasonable price that offers best value 

9 to the United States. 

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

11 A small business concern may be awarded a contract 

12 under this section only if the small business concern and 

13 the veteran owner of the small business concern are listed 

14 in the database of veteran-owned businesses maintained 

15 by the Secretary under subsection (f). 

16 ‘‘(f) DATABASE OF VETERAN-OWNED BUSI17 NESSES.—(1) Subject to paragraphs (2) through (6), the 

18 Secretary shall maintain a database of small business con19 cerns owned and controlled by veterans and the veteran 

20 owners of such business concerns. 

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

22 a veteran shall submit to the Secretary such information 

23 as the Secretary may require with respect to the small 

24 business concern or the veteran. 
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1 ‘‘(3) Information maintained in the database shall be 

2 submitted on a voluntary basis by such veterans. 

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

4 carry out at least the following two verification functions: 

5 ‘‘(A) Verification that each small business con6 cern listed in the database is owned and controlled 

7 by veterans. 

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

9 service-connected disability, verification of the serv10 ice-disabled status of such veteran. 

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

12 to all Federal departments and agencies and notify each 

13 such department and agency of the availability of the 

14 database. 

15 ‘‘(6) If the Secretary determines that the public dis16 semination of certain types of information maintained in 

17 the database is inappropriate, the Secretary shall take 

18 such steps as are necessary to maintain such types of in19 formation in a secure and confidential manner. 

20 ‘‘(g) ENFORCEMENT PENALTIES FOR MISREPRESEN21 TATION.—Any small business concern that is determined 

22 by the Secretary to have misrepresented the status of that 

23 concern as a small business concern owned and controlled 

24 by veterans or as a small business concern owned and con25 trolled by service-disabled veterans for purposes of this 
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1 subsection shall be debarred from contracting with the De2 partment for a period of five years. 

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

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

5 a small business concern to be less than 51 percent owned 

6 by one or more veterans, the surviving spouse of such vet7 eran who acquires ownership rights in such small business 

8 concern shall, for the period described in paragraph (2), 

9 be treated as if the surviving spouse were that veteran for 

10 the purpose of maintaining the status of the small busi11 ness concern as a small business concern owned and con12 trolled by veterans. 

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

14 period beginning on the date on which the veteran dies 

15 and ending on the earliest of the following dates: 

16 ‘‘(A) The date on which the surviving spouse 

17 remarries. 

18 ‘‘(B) The date on which the surviving spouse 

19 relinquishes an ownership interest in the small busi20 ness concern. 

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

22 of the veteran’s death. 

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

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

25 acquires ownership rights in such concern shall not be 
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1 cause for termination of a contract awarded under this 

2 section that is in effect at the time of death of such owner 

3 or surviving spouse. 

4 ‘‘(i) CHANGE IN OWNERSHIP OR CONTROL.—(1) Ex5 cept as provided in subsection (h), if a small business con6 cern that is awarded a contract under this section under7 goes a change in management or control during the period 

8 for which the contract is in effect such that it is no longer 

9 a small business concern owned and controlled by vet10 erans, the Secretary shall end the contract on the date 

11 on which the performance of the term of the contract is 

12 complete. 

13 ‘‘(2) Such a contract that contains an option or op14 tions to extend the contract may be extended for a total 

15 of not more than 1 year pursuant to any such option. 

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

17 Preferences for awarding contracts to small business con18 cerns shall be applied in the following order of priority: 

19 ‘‘(1) Contracts awarded pursuant to subsection 

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

21 controlled by veterans with service-connected disabil22 ities. 

23 ‘‘(2) Contracts awarded pursuant to subsection 

24 (b), (c), or (d) to small business concerns owned and 
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1 controlled by veterans that are not covered by sub2 paragraph (A). 

3 ‘‘(3) Contracts awarded pursuant to—

4 ‘‘(A) section 8(a) of the Small Business 

5 Act (15 U.S.C. 637(a)); or 

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

7 657a). 

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

9 business contracting preference. 

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

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

12 submit to Congress a report on small business contracting 

13 during that fiscal quarter, which shall include the fol14 lowing: 

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

16 contracts awarded by the Department during that 

17 fiscal quarter that were awarded to small business 

18 concerns owned and controlled by veterans. 

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

20 such contracts awarded to small business concerns 

21 owned and controlled by veterans with service-con22 nected disabilities. 

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

24 contracts awarded by each Administration of the De25 partment during that fiscal quarter that were 
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1 awarded to small business concerns owned and con2 trolled by veterans. 

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

4 contracts awarded by each such Administration dur5 ing that fiscal quarter that were awarded to small 

6 business concerns owned and controlled by veterans. 

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

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

9 meaning given that term under section 3 of the 

10 Small Business Act (15 U.S.C. 632). 

11 ‘‘(2) The term ‘small business concern owned 

12 and controlled by veterans’ means a small business 

13 concern—

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

15 is owned by one or more veterans or, in the 

16 case of a publicly owned business, not less than 

17 51 percent of the stock of which is owned by 

18 one or more veterans; and 

19 ‘‘(ii) the management and daily business 

20 operations of which are controlled by one or 

21 more veterans; or 

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

23 owned by one or more veterans with service24 connected disabilities that are permanent and 

25 total who are unable to manage the daily busi-
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1 ness operations of such concern or, in the case 

2 of a publicly owned business, not less than 51 

3 percent of the stock of which is owned by one 

4 or more such veterans.’’.

5 (b) TRANSITION RULE.—A small business concern 

6 that is listed in any small business database maintained 

7 by the Secretary of Veterans Affairs on the date of the 

8 enactment of this Act shall be presumed to be eligible for 

9 inclusion in the database under subsection (f) of section 

10 8127 of title 38, United States Code, as added by sub11 section (a), during the period beginning on the date of 

12 the enactment of this Act and ending one year after the 

13 date of the enactment of this Act. Such a small business 

14 concern may be removed from the database during that 

15 period if it is found not to be a small business concern 

16 owned and controlled by veterans (as defined in subsection 

17 (l) of such section). 

18 (c) COMPTROLLER GENERAL REPORT AND STUDY.—

19 (1) During the first three fiscal years for which this sec20 tion is in effect, the Comptroller General shall conduct a 

21 study on the efforts made by the Secretary of Veterans 

22 Affairs to meet the contracting goals established pursuant 

23 to section 8127 of title 38, United States Code, as added 

24 by subsection (a). 
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1 (2) On January 31 of each year during which the 

2 Comptroller General conducts the study under paragraph 

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

4 interim report on such study, placing special emphasis on 

5 any structural or organizational issues within the Depart6 ment of Veterans Affairs that might act as an impediment 

7 to reaching such contracting goals. 

8 (3) Not later than 90 days after the end of the three9 year period during which the Comptroller General con10 ducts the study under paragraph (1), the Comptroller 

11 General shall submit to Congress a report on the findings 

12 of such study. 

13 (d) CLERICAL AMENDMENT.—The table of sections 

14 at the beginning of such chapter is amended by inserting 

15 after the item relating to section 8126 the following new 

16 item:

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

contracting goals and preferences.’’.

17 SEC. 102. DEPARTMENT OF VETERANS AFFAIRS CON18 TRACTING PRIORITY FOR VETERAN-OWNED 

19 SMALL BUSINESSES. 

20 (a) PRIORITY FOR VETERAN-OWNED SMALL BUSI21 NESSES.—Subchapter II of chapter 81 of title 38, United 

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

23 amended by adding at the end the following new section: 
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1 ‘‘§ 8128. Contracting priority for small business con2 cerns owned and controlled by veterans 

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

4 pursuant to a contracting preference under this title or 

5 any other provision of law, the Secretary shall give priority 

6 to a small business concern owned and controlled by vet7 erans, if such business concern also meets the require8 ments of that contracting preference. 

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

10 owned and controlled by veterans’ means a small business 

11 concern that is on the list maintained by the Secretary 

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

13 (b) CLERICAL AMENDMENT.—The table of sections 

14 at the beginning of such chapter, as amended by section 

15 101, is further amended by inserting after the item relat16 ing to section 8127 the following new item:

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

by veterans.’’.

17 SEC. 103. EFFECTIVE DATE. 

18 This title and the amendments made by this title 

19 shall take effect on the date that is 180 days after the 

20 date of the enactment of this Act. 
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1 TITLE II—MEMORIAL AFFAIRS 

2 SEC. 201. ELIGIBILITY OF INDIAN TRIBAL ORGANIZATIONS 

3 FOR GRANTS FOR THE ESTABLISHMENT OF 

4 VETERANS CEMETERIES ON TRUST LANDS. 

5 Section 2408 of title 38, United States Code, is 

6 amended by adding at the end the following new sub7 section: 

8 ‘‘(f)(1) The Secretary may make grants under this 

9 subsection to any tribal organization to assist the tribal 

10 organization in establishing, expanding, or improving vet11 erans’ cemeteries on trust land owned by, or held in trust 

12 for, the tribal organization. 

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

14 the same manner, and under the same conditions, as 

15 grants to States are made under the preceding provisions 

16 of this section. 

17 ‘‘(3) In this subsection: 

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

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

20 title. 

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

22 given that term in section 3765(1) of this title.’’.
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1 SEC. 202. REPEAL OF EXPIRATION AND EXPANDED APPLI2 CATION OF DEPARTMENT OF VETERANS AF3 FAIRS BENEFIT FOR GOVERNMENT MARKERS 

4 OR HEADSTONES FOR MARKED GRAVES OF 

5 VETERANS BURIED IN PRIVATE CEMETERIES. 

6 (a) REPEAL OF EXPIRATION OF GOVERNMENT

7 MARKER BENEFIT AND OBSOLETE PROVISION.—Section 

8 2306(d) of title 38, United States Code, is amended by 

9 striking paragraphs (3) and (4). 

10 (b) APPLICATION OF GOVERNMENT MARKER BEN11 EFIT TO VETERANS DYING ON OR AFTER NOVEMBER 1, 

12 1990.—Subsection (d) of section 502 of the Veterans 

13 Education and Benefits Expansion Act of 2001 (Public 

14 Law 107-103; 38 U.S.C. 2306 note) is amended by strik15 ing ‘‘September 11, 2001’’ and inserting ‘‘November 1, 

16 1990’’. 

17 (c) PROVISION OF GOVERNMENT HEADSTONES.—

18 (1) PROVISION OF HEADSTONES.—Subsection 

19 (d) of section 2306 of title 38, United States Code, 

20 is amended—

21 (A) in paragraph (1)—

22 (i) in the first sentence, by inserting 

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

24 (ii) in the second sentence, by insert25 ing ‘‘headstone or’’ before ‘‘marker’’ each 

26 place it appears; and 
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1 (B) in paragraph (2), by inserting ‘‘head2 stone or’’ before ‘‘marker’’. 

3 (2) CONFORMING AMENDMENT.—Subsection 

4 (g)(3) of such section is amended by inserting 

5 ‘‘headstone or’’ before ‘‘marker’’. 

6 (d) PLACEMENT OF GOVERNMENT HEADSTONES OR

7 MARKERS.—Subsection (d)(1) of such section, as amend8 ed by subsection (c), is further amended by adding at the 

9 end the following new sentence: ‘‘If placing the Govern10 ment headstone or marker on the grave for which it is 

11 requested is impossible or impracticable, a headstone or 

12 marker may be furnished if the individual making the re13 quest for the headstone or marker certifies to the Sec14 retary that the headstone or marker will be placed within 

15 the grounds of the cemetery in which the grave for which 

16 the headstone or marker is requested and as close as pos17 sible or practicable to that grave.’’. 

18 (e) DELIVERY OF GOVERNMENT HEADSTONES OR

19 MARKERS.—Subsection (d)(2) of such section, as amend20 ed by subsection (c), is further amended by inserting be21 fore the period at the end the following: ‘‘or to a receiving 

22 agent of that cemetery’’. 

23 (f) SELECTION OF GOVERNMENT HEADSTONES AND

24 MARKERS.—Subsection (d) of such section, as amended 
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1 by subsections (a), (c), (d), and (e), is further amended 

2 by adding at the end the following new paragraph (3): 

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

4 subsection shall be the headstone or marker selected by 

5 the individual making the request for the headstone or 

6 marker from among all the headstones and markers made 

7 available by the Government and certified as acceptable 

8 for placement.’’.

9 (g) RETROACTIVE EFFECTIVE DATE.—The amend10 ments made by this section shall apply as if enacted in 

11 section 502 of the Veterans Education and Benefits Ex12 pansion Act of 2001 (Public Law 107-103; 38 U.S.C. 

13 2306 note). 

14 SEC. 203. PROVISION OF GOVERNMENT MEMORIAL 

15 HEADSTONES OR MARKERS AND MEMORIAL 

16 INSCRIPTIONS FOR DECEASED DEPENDENT 

17 CHILDREN OF VETERANS WHOSE REMAINS 

18 ARE UNAVAILABLE FOR BURIAL. 

19 (a) PROVISION OF MEMORIAL HEADSTONES OR

20 MARKERS.—Subsection (b) of section 2306 of title 38, 

21 United States Code, is amended—

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

23 following new subparagraph: 

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

25 and
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1 (2) by adding at the end of paragraph (4) the 

2 following new subparagraph: 

3 ‘‘(C) For purposes of this section, the term ‘eli4 gible dependent child’ means a child—

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

6 23 years of age if pursuing a course of instruc7 tion at an approved educational institution; or 

8 ‘‘(ii) who is unmarried and became perma9 nently physically or mentally disabled and in10 capable of self-support before reaching 21 years 

11 of age, or before reaching 23 years of age if 

12 pursuing a course of instruction at an approved 

13 educational institution.’’.

14 (b) ADDITION OF MEMORIAL INSCRIPTION TO HEAD15 STONE OR MARKER OF VETERAN.—Subsection (f) of such 

16 section is amended by inserting ‘‘or eligible dependent 

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

18 (c) EFFECTIVE DATE.—The amendments made by 

19 subsections (a) and (b) shall apply with respect to individ20 uals dying after the date of the enactment of this Act. 
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1 TITLE III—VETERANS’ 

2 EMPLOYMENT AND TRAINING 

3 SEC. 301. PROFESSIONAL QUALIFICATIONS FOR DISABLED 

4 VETERANS’ OUTREACH PROGRAM SPECIAL5 ISTS AND LOCAL VETERANS’ EMPLOYMENT 

6 REPRESENTATIVES. 

7 (a) ESTABLISHMENT OF GUIDELINES BY SEC8 RETARY.—Section 4107 of title 38, United States Code, 

9 is amended by adding at the end the following new sub10 section: 

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

12 by States in establishing the professional qualifications re13 quired under subclause (IV) of section 4102A(c)(2)(A)(i) 

14 of this title for determining the eligibility for employment, 

15 and eligibility for the continued employment, of State em16 ployees who are designated as disabled veterans’ outreach 

17 program specialists and local veterans’ employment rep18 resentatives under this chapter.’’.

19 (b) SUBMISSION OF ANNUAL PROFESSIONAL QUALI20 FICATIONS AS A CONDITION OF STATE RECEIPT OF

21 FUNDS UNDER VETS PROGRAM.—Clause (i) of section 

22 4102A(c)(2)(A) of such title is amended—

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

24 end; 
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1 (2) in subclause (III), by striking the period at 

2 the end and inserting a semicolon; and 

3 (3) by adding at the end the following new sub4 clauses: 

5 ‘‘(IV) the professional qualifications used 

6 by the State for determining the eligibility for 

7 employment, and eligibility for continued em8 ployment, of State employees who are des9 ignated as disabled veterans’ outreach program 

10 specialists and local veterans’ employment rep11 resentatives under this chapter; and 

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

13 the State for State employees who are des14 ignated as disabled veterans’ outreach program 

15 specialists and local veterans’ employment rep16 resentatives under this chapter.’’.

17 (c) DEADLINE FOR ESTABLISHMENT OF QUALIFICA18 TIONS.—The Secretary of Labor shall establish the guide19 lines for professional qualifications required by sections 

20 4107(d) of title 38, United States Code, as added by sub21 section (a), not later than the date that is 180 days after 

22 the date of the enactment of this Act. 

23 (d) TECHNICAL AMENDMENTS.—
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1 (1) AMENDMENTS.—Section 4102A of such 

2 title, as amended by subsection (b), is further 

3 amended—

4 (A) in subsection (c)—

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

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

7 clause (ii); and 

8 (ii) in paragraph (6)—

9 (I) by inserting ‘‘(29 U.S.C. 

10 2801 et seq.)’’ after ‘‘the Workforce 

11 Investment Act of 1998’’; and 

12 (II) by inserting ‘‘(29 U.S.C. 49 

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

14 Act’’; and 

15 (B) in subsection (f)—

16 (i) in paragraph (1), by striking ‘‘es17 tablish and’’; and 

18 (ii) by striking the heading and insert19 ing the following: ‘‘PERFORMANCE STAND20 ARDS AND OUTCOMES MEASURES.—’’. 

21 (2) EFFECTIVE DATE.—The amendment made 

22 by clause (i) of paragraph (1)(A) shall take effect on 

23 October 1, 2006. 
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1 SEC. 302. RULES FOR PART-TIME EMPLOYMENT FOR DIS2 ABLED VETERANS’ OUTREACH PROGRAM 

3 SPECIALISTS AND LOCAL VETERANS’ EM4 PLOYMENT REPRESENTATIVES. 

5 (a) DISABLED VETERANS’ OUTREACH PROGRAM

6 SPECIALISTS.—Section 4103A of title 38, United States 

7 Code, is amended by adding at the end the following new 

8 subsection: 

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

10 veterans’ outreach program specialist shall perform the 

11 functions of a disabled veterans’ outreach program spe12 cialist under this section on a half-time basis.’’.

13 (b) LOCAL VETERANS’ EMPLOYMENT REPRESENTA14 TIVES.—Section 4104 of such title is amended by adding 

15 at the end the following new subsection: 

16 ‘‘(e) PART-TIME EMPLOYEES.—A part-time local vet17 erans’ employment representative shall perform the func18 tions of a local veterans’ employment representative under 

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

20 (c) EFFECTIVE DATE.—Sections 4103A(c) and 

21 4104(e) of title 38, United States Code, as added by sub22 sections (a) and (b), shall apply with respect to pay peri23 ods beginning after the date that is 180 days after the 

24 date of the enactment of this Act. 
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1 SEC. 303. STATE LICENSING AND CERTIFICATION PRO2 GRAMS FOR VETERANS. 

3 (a) REQUIREMENT AS A CONDITION OF VETS FUND4 ING.—Section 4102A(c) of title 38, United States Code, 

5 as amended by section 301, is further amended by adding 

6 at the end the following new paragraph: 

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

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

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

10 require the State to provide a licensing and certification 

11 program under which a veteran may receive credit toward 

12 a license or certification based on training or experience 

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

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

15 38, United States Code, as added by subsection (a), shall 

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

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

18 or 4104 of such title beginning with the second program 

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

20 SEC. 304. TRAINING OF NEW DISABLED VETERANS’ OUT21 REACH PROGRAM SPECIALISTS AND LOCAL 

22 VETERANS’ EMPLOYMENT REPRESENTA23 TIVES BY NVTI REQUIRED. 

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

25 38, United States Code, is further amended by adding 
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1 after paragraph (8), as added by section 303, the following 

2 new paragraph: 

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

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

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

6 require the State to require each employee hired by the 

7 State who is designated as disabled veterans’ outreach 

8 program specialist or a local veterans’ employment rep9 resentative under this chapter to satisfactorily complete 

10 training provided by the National Veterans’ Employment 

11 and Training Services Institute during the three-year pe12 riod that begins on the date on which the employee is so 

13 designated. 

14 ‘‘(B) For any employee described in subparagraph 

15 (A) who does not complete such training during such pe16 riod, the Secretary may reduce by an appropriate amount 

17 the amount made available to the State employing that 

18 employee.’’.

19 (b) SUBMISSION OF EMPLOYEE TRAINING INFORMA20 TION REQUIRED.—Section 4102A(c)(2)(A) of such title is 

21 amended—

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

23 and 

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

25 new clause (iii): 
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1 ‘‘(iii) For each employee of the State who is 

2 designated as disabled veterans’ outreach program 

3 specialist or a local veterans’ employment represent4 ative under this chapter—

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

6 designated; and 

7 ‘‘(II) whether the employee has satisfac8 torily completed training provided by the Na9 tional Veterans’ Employment and Training 

10 Services Institute.’’.

11 (c) APPLICABILITY.—

12 (1) APPLICABILITY TO NEW EMPLOYEES.—

13 Paragraph (9) of section 4102A(c) of such title, as 

14 added by subsection (a), and clause (iii) of section 

15 4102A(c)(2)(A) of such title, as added by subsection 

16 (b), shall apply with respect to a State employee des17 ignated as a disabled veterans’ outreach program 

18 specialist or a local veterans’ employment represent19 ative under chapter 41 of such title who is so des20 ignated after the date of the enactment of this Act. 

21 (2) APPLICABILITY TO CERTAIN EMPLOYEES

22 HIRED BEFORE DATE OF ENACTMENT.—The Sec23 retary of Labor shall apply such paragraph to a 

24 State employee designated as a disabled veterans’ 

25 outreach program specialist or a local veterans’ em-
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1 ployment representative under chapter 41 of such 

2 title who was so designated during the five-year pe3 riod before the date of the enactment of this Act by 

4 substituting ‘‘during the period beginning on the 

5 date on which the employee is so designated and 

6 ending on the date that is five years after the date 

7 of the enactment of the Veterans Small Business 

8 and Memorial Affairs Act of 2006’’ for ‘‘during the 

9 three-year period that begins on the date on which 

10 the employee is so designated’’. 

11 SEC. 305. MATTERS FOR INCLUSION IN ANNUAL REPORT 

12 ON VETS PROGRAM. 

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

14 amended—

15 (1) by redesignating paragraphs (3) through 

16 (6) as paragraphs (10) through (13), respectively; 

17 and 

18 (2) by inserting after paragraph (2) the fol19 lowing new paragraphs: 

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

21 and special disabled veterans who requested training 

22 from the public employment service system; 

23 ‘‘(4) the total number of eligible veterans par24 ticipating in each program for the provision of em25 ployment and training services designed to meet the 
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1 needs of eligible veterans and eligible persons and 

2 the number of such veterans as a percentage of the 

3 total number of participants in each such program; 

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

5 seeking employment in the State who are veterans; 

6 ‘‘(6) for each State, the number of veterans re7 ferred to a small business development center in that 

8 State and the number of veterans referred to the 

9 National Veterans Business Development Corpora10 tion established under section 33 of the Small Busi11 ness Act (15 U.S.C. 657c); 

12 ‘‘(7) the total number of such veterans and dis13 abled veterans who remain employed for at least 90 

14 days in such jobs; 

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

16 veterans who remain employed for at least 180 days 

17 in such jobs; 

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

19 such veterans and disabled veterans and, if applica20 ble, the average wage or salary paid to such veterans 

21 and disabled veterans as of the 180th day of employ22 ment;’’.
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1 SEC. 306. DEMONSTRATION PROJECT ON CONTRACTING 

2 FOR PLACEMENT OF CERTAIN DISABLED 

3 VETERANS. 

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

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

6 303, and 304, is further amended by adding at the end 

7 the following new subsection: 

8 ‘‘(h) DEMONSTRATION PROJECT ON CONTRACTING

9 FOR PLACEMENT OF VETERANS IN HIGH-UNEMPLOY10 MENT AREAS.—(1) From unobligated funds made avail11 able for a fiscal year to carry out sections 4103A and 4104 

12 of this title, the Secretary of Labor, acting through the 

13 Assistant Secretary of Labor for Veterans’ Employment 

14 and Training, may enter into a contract with a nongovern15 mental entity to carry out job placement services for vet16 erans during that fiscal year in a locality where the unem17 ployment rate for veterans exceeds the national average 

18 unemployment rate. 

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

20 the Secretary of Labor may use procedures other than 

21 competitive procedures. 

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

23 the Secretary of Labor shall give priority to a small busi24 ness concern owned and controlled by veterans that is list25 ed in any small business database maintained by the Sec26 retary of Veterans Affairs. 
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1 ‘‘(4) The total amount obligated under contracts en2 tered into under paragraph (1) for any fiscal year may 

3 not exceed $3,000,000. 

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

5 subsection shall terminate on the date that is five years 

6 after the date of the enactment of the Veterans Small 

7 Business and Memorial Affairs Act of 2006.’’.

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

9 the date of the enactment of this Act, the Comptroller 

10 General shall submit to the Committees on Veterans’ Af11 fairs of the Senate and House of Representatives a report 

12 on the demonstration project under subsection (h) of sec13 tion 4102A of title 38, United States Code, as added by 

14 subsection (a). 

15 SEC. 307. PERFORMANCE INCENTIVE AWARDS FOR EM16 PLOYMENT SERVICE OFFICES. 

17 (a) PROVISION OF INCENTIVES TO EMPLOYMENT

18 SERVICE OFFICES.—Section 4112 of title 38, United 

19 States Code, is amended—

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

21 employment service offices’’ after ‘‘recognize eligible 

22 employees’’; 

23 (2) in subsection (c)—

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

25 the end; 
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1 (B) in paragraph (2)—

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

3 the case of such an award made to an eli4 gible employee, shall be’’; and 

5 (ii) by striking the period at the end 

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

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

8 paragraph: 

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

10 employment service office, may be used by that em11 ployment service office for any purpose.’’.

12 (b) CONFORMING AMENDMENT.—The heading for 

13 subsection (c) of such section is amended to read as fol14 lows: ‘‘ADMINISTRATION AND USE OF AWARDS.—’’. 

15 SEC. 308. DEPARTMENT OF LABOR IMPLEMENTATION OF 

16 PRIORITY OF SERVICE FOR VETERANS RE17 QUIREMENT. 

18 Not later than one year after the date of the enact19 ment of this Act, the Secretary of Labor shall prescribe 

20 regulations to implement section 4215 of title 38, United 

21 States Code. 
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1 SEC. 309. DEMONSTRATION PROJECT ON CREDENTIALING 

2 AND LICENSURE OF VETERANS. 

3 (a) ESTABLISHMENT OF DEMONSTRATION

4 PROJECT.—Chapter 41 of title 38, United States Code, 

5 is amended by adding at the end the following new section: 

6 ‘‘§ 4114. Demonstration project on credentialing and 

7 licensure of veterans 

8 ‘‘(a) ESTABLISHMENT AND PURPOSE OF DEM9 ONSTRATION PROJECT.—The Assistant Secretary for Vet10 erans’ Employment and Training shall carry out a dem11 onstration project on credentialing in accordance with this 

12 section for the purpose of facilitating the seamless transi13 tion of members of the Armed Forces from service on ac14 tive duty to civilian employment. 

15 ‘‘(b) CREDENTIALING AND LICENSURE OF VET16 ERANS.—(1) The Assistant Secretary shall select not less 

17 than ten military occupational specialties for purposes of 

18 the demonstration project. Each such speciality selected 

19 by the Assistant Secretary shall require a skill or set of 

20 skills that is required for civilian employment in an indus21 try with high growth or high worker demand. 

22 ‘‘(2) The Assistant Secretary shall consult with ap23 propriate Federal, State, and industry officials to identify 

24 requirements for credentials, certifications, and licenses 

25 that require a skill or set of skills required by a military 

26 occupational specialty identified under paragraph (1). 
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1 ‘‘(3) The Assistant Secretary shall analyze the re2 quirements identified under paragraph (2) to determine 

3 which requirements may be satisfied by the skills, training, 

4 or experience acquired by members of the Armed Forces 

5 with the military occupational specialties selected under 

6 paragraph (1). 

7 ‘‘(c) ELIMINATION OF BARRIERS TO CREDENTIALING

8 AND LICENSURE.—The Assistant Secretary shall cooper9 ate with appropriate Federal, State, and industry officials 

10 to reduce or eliminate any barriers to providing a creden11 tial, certification, or license to a veteran who acquired any 

12 skill, training, or experience while serving as a member 

13 of the Armed Forces with a military occupational specialty 

14 selected under subsection (b)(1) that satisfies the Federal 

15 and State requirements for the credential, certification, or 

16 license. 

17 ‘‘(d) TASK FORCE.—The Assistant Secretary may es18 tablish a task force of individuals with appropriate exper19 tise to provide assistance to the Assistant Secretary in car20 rying out this section. 

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

22 the Assistant Secretary shall consult with the Secretary 

23 of Defense, the Secretary of Veterans Affairs, appropriate 

24 Federal and State officials, private-sector employers, labor 

25 organizations, and industry trade associations. 
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1 ‘‘(f) CONTRACT AUTHORITY.—For purposes of car2 rying out any part of the demonstration project under this 

3 section, the Assistant Secretary may enter into a contract 

4 with a public or private entity with appropriate expertise. 

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

6 shall carry out the demonstration project under this sec7 tion during the period beginning on the date that is 60 

8 days after the date of the enactment of this section and 

9 ending on September 30, 2009. 

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

11 are authorized to be appropriated to the Assistant Sec12 retary to carry out this section $1,000,000 for each of fis13 cal years 2007 through 2009.’’.

14 (b) MEMBERSHIP OF ADVISORY COMMITTEE ON VET15 ERANS EMPLOYMENT, TRAINING, AND EMPLOYER OUT16 REACH.—Section 4110(c)(1)(A) of such title is amend17 ed—

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

19 and 

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

21 clause: 

22 ‘‘(vii) The National Governors Associa23 tion.’’.
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1 (c) CLERICAL AMENDMENT.—The table of sections 

2 at the beginning of chapter 41 of such title is amended 

3 by adding 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, 

10 is amended by striking ‘‘prior to completion’’ and all that 

11 follows and inserting the following: ‘‘before completion 

12 and—

13 ‘‘(A) in the case of an institution other 

14 than (i) a Federal, State, or local Government 

15 institution or (ii) an institution described in 

16 subparagraph (B), such policy provides that the 

17 amount charged to the eligible person for tui18 tion, fees, and other charges for a portion of 

19 the course shall not exceed the approximate pro 

20 rata portion of the total charges for tuition, 

21 fees, and other charges that the length of the 

22 completed portion of the course bears to its 

23 total length; and 

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

25 a nonaccredited public educational institution, 
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1 the institution has and maintains a refund pol2 icy regarding the unused portion of tuition, 

3 fees, and other charges that is substantially the 

4 same as the refund policy followed by accredited 

5 public educational institutions located within 

6 the same State as such institution.’’.

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

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

9 is amended by striking ‘‘December 27, 2006’’ each place 

10 it appears and inserting ‘‘June 30, 2007’’. 

11 SEC. 403. REPORT ON IMPROVEMENT IN ADMINISTRATION 

12 OF EDUCATIONAL ASSISTANCE BENEFITS. 

13 Not later than 180 days after the date of the enact14 ment of this Act, the Secretary of Veterans Affairs shall 

15 submit to Congress a report on the administration of edu16 cation benefits under chapters 30, 31, 32, 34, 35, and 36 

17 of title 38, United States Code, and chapters 1606 and 

18 1607 of title 10, United States Code, that proposes meth19 ods to streamline the processes and procedures of admin20 istering such benefits. 
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1 SEC. 404. RESTORATION OF LOST ENTITLEMENT FOR INDI2 VIDUALS WHO HAD TO DISCONTINUE A 

3 COURSE OF EDUCATION BECAUSE OF BEING 

4 ORDERED TO FULL-TIME NATIONAL GUARD 

5 DUTY. 

6 (a) RESTORATION OF ENTITLEMENT.—Section 

7 3511(a)(2)(B)(i) of title 38, United States Code, is 

8 amended by inserting after ‘‘title 10’’ the following: ‘‘or 

9 of being involuntarily ordered to full-time National Guard 

10 duty under section 502(f) of title 32’’. 

11 (b) EFFECTIVE DATE.—The amendment made by 

12 subsection (a) shall apply with respect to a payment of 

13 educational assistance allowance made after September 

14 11, 2001. 

15 SEC. 405. TECHNICAL AMENDMENTS. 

16 Section 3485 of title 38, United States Code, is 

17 amended—

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

19 1607’’ after ‘‘chapter 1606’’; 

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

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

22 (3) in subsection (e)(1)—

23 (A) by striking ‘‘services of the kind de24 scribed in clauses (A) through (E) of subsection 

25 (a)(1) of this section’’ and inserting ‘‘a quali-
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1 fying work-study activity described in sub2 section (a)(4)’’; and 

3 (B) by striking ‘‘chapter 106’’ and insert4 ing ‘‘chapter 1606 or 1607’’.

Passed the House of Representatives July 24, 2006. 

Attest:

Clerk.