I 

113TH CONGRESS 

1ST SESSION H. R. 2056 

To amend the Internal Revenue Code of 1986 to extend the work opportunity 

credit to certain recently discharged veterans, to improve the coordination 

of veteran job training services between the Department of Labor, the 

Department of Veteran Affairs, and the Department of Defense, to 

require transparency for Executive departments in meeting the Government-wide goals for contracting with small business concerns owned 

and controlled by service-disabled veterans, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

MAY 20, 2013 

Ms. SCHWARTZ (for herself, Mr. PETERS of California, Mr. BARBER, Mr. 

BERA of California, Ms. BROWNLEY of California, Mr. CA ́RDENAS, Mr. 

CARNEY, Mrs. CHRISTENSEN, Mr. COHEN, Mr. COURTNEY, Mrs. DAVIS

of California, Mr. DEFAZIO, Mr. DOYLE, Mr. ENYART, Mr. FATTAH, Ms. 

FRANKEL of Florida, Mr. GRIJALVA, Ms. HAHN, Mr. HECK of Washington, Mr. HIGGINS, Ms. NORTON, Mr. LOEBSACK, Mr. LOWENTHAL, 

Mr. MICHAUD, Mr. MURPHY of Florida, Mrs. NAPOLITANO, Mr. 

O’ROURKE, Mr. RAHALL, Mr. RUIZ, Mr. RUSH, Mr. RYAN of Ohio, Mr. 

SCOTT of Virginia, Ms. SINEMA, Mr. SIRES, Mr. SWALWELL of California, Mr. TAKANO, Mr. VARGAS, Mr. VEASEY, Mr. WAXMAN, Mr. 

WELCH, Ms. WILSON of Florida, Mr. JONES, Ms. JACKSON LEE, and Mr. 

BISHOP of New York) introduced the following bill; which was referred 

to the Committee on Ways and Means, and in addition to the Committees 

on Veterans’ Affairs, Armed Services, Small Business, and Education and 

the Workforce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned 

A BILL 

To amend the Internal Revenue Code of 1986 to extend 

the work opportunity credit to certain recently discharged 

veterans, to improve the coordination of veteran job 

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training services between the Department of Labor, the 

Department of Veteran Affairs, and the Department of 

Defense, to require transparency for Executive departments in meeting the Government-wide goals for contracting with small business concerns owned and controlled by service-disabled veterans, and for other purposes. 

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

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Veteran Employment 

5 Transition Act’’. 

6 TITLE I—WORK OPPORTUNITY 

7 CREDIT FOR RECENTLY DIS8 CHARGED VETERANS 

9 SEC. 101. WORK OPPORTUNITY CREDIT FOR CERTAIN RE10 CENTLY DISCHARGED VETERANS. 

11 (a) IN GENERAL.—Subparagraph (A) of section 

12 51(d)(3) of the Internal Revenue Code of 1986 is amended 

13 by striking ‘‘means any veteran who is’’ and inserting 

14 ‘‘means any recently discharged veteran, or any veteran 

15 if such veteran is’’. 

16 (b) RECENTLY DISCHARGED VETERAN.—Paragraph 

17 (3) of section 51(d) of the Internal Revenue Code of 1986 

18 is amended— 

19 (1) by redesignating subparagraph (C) as sub20 paragraph (D), and 

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1 (2) by inserting after subparagraph (B) the fol2 lowing new subparagraph: 

3 ‘‘(C) RECENTLY DISCHARGED VETERAN.— 

4 For purposes of subparagraph (A), the term 

5 ‘recently discharged veteran’ means— 

6 ‘‘(i) any individual who is described in 

7 clause (i) of subparagraph (B) (without re8 gard to certification), and 

9 ‘‘(ii) any member of the National 

10 Guard who has served for more than 180 

11 consecutive days of— 

12 ‘‘(I) active duty (within the 

13 meaning of title 32, United States 

14 Code) other than for training, 

15 ‘‘(II) full-time National Guard 

16 duty (within the meaning of such title 

17 32) other than for training, 

18 ‘‘(III) duty, other than inactive 

19 duty or duty for training, in State 

20 status (within the meaning of such 

21 title 32), or 

22 ‘‘(IV) any combination of duty 

23 described in subclause (I), (II), or 

24 (III), 

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1 who has been discharged or released from duty 

2 meeting such requirements at any time during 

3 the 5-year period ending on the hiring date. 

4 Such term shall not include any veteran who 

5 begins work for the employer before the date of 

6 the enactment of the Veteran Employment 

7 Transition Act.’’. 

8 (c) CONFORMING AMENDMENTS.—Section 51(d) of 

9 the Internal Revenue Code of 1986 is amended— 

10 (1) by adding at the end of paragraph (13) the 

11 following new subparagraph: 

12 ‘‘(E) PRE-SCREENING OF RECENTLY DIS13 CHARGED VETERANS.— 

14 ‘‘(i) IN GENERAL.—For purposes of 

15 subparagraph (A), the term ‘pre-screening 

16 notice’ shall include any documentation 

17 provided to an individual by the Depart18 ment of Defense or the National Guard 

19 upon release or discharge from the Armed 

20 Forces or from service in the National 

21 Guard which includes information suffi22 cient to establish that such individual sat23 isfies the requirements of paragraph 

24 (3)(C). 

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1 ‘‘(ii) ADDITIONAL CERTIFICATION NOT

2 REQUIRED.—Subparagraph (A) shall be 

3 applied without regard to clause (ii)(II) 

4 thereof in the case of a recently discharged 

5 veteran who provides to the employer docu6 mentation described in clause (i).’’, and 

7 (2) by striking paragraph (14). 

8 (d) EFFECTIVE DATES.—The amendments made by 

9 subsections (a), (b), and (c) shall apply to individuals 

10 whose hiring date (as defined in section 51(d)(11) of the 

11 Internal Revenue Code of 1986) is on or after the date 

12 of the enactment of this Act. 

13 (e) DEPARTMENT OF DEFENSE DOCUMENTATION.— 

14 (1) IN GENERAL.—The Department of Defense 

15 and the National Guard, as applicable, shall pro16 vide— 

17 (A) to each individual who is discharged or 

18 released from active duty in the Armed Forces 

19 of the United States on or after the date of the 

20 enactment of this Act; and 

21 (B) to each member of the National Guard 

22 who is released from duty described in section 

23 51(d)(3)(C)(ii) of the Internal Revenue Code of 

24 1986 (as added by this Act) on or after the 

25 date of the enactment of this Act; 

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1 documentation described in paragraph (4) (in addi2 tion to the documentation which, without regard to 

3 this subsection, is provided at the time of such dis4 charge or release). If the documentation which is 

5 provided without regard to this subsection at the 

6 time of the discharge or release described in the pre7 ceding sentence does not include information suffi8 cient to satisfy the requirements of section 

9 51(d)(13)(E)(i) of the Internal Revenue Code of 

10 1986 (as added by this Act), the Department of De11 fense or the National Guard, whichever is applicable, 

12 shall provide additional documentation which in13 cludes such information. 

14 (2) INFORMATIONAL BRIEFING AS PART OF

15 PRESEPARATION COUNSELING.—In the case of an 

16 individual who is discharged or released from duty 

17 described in subparagraph (A) or (B) of paragraph 

18 (1) after the date of the enactment of this Act, the 

19 Department of Defense or the National Guard, 

20 whichever is applicable, shall inform such individual, 

21 as a part of the individual preseparation counseling 

22 required by section 1142 of title 10, United States 

23 Code, of the credit for employment of recently dis24 charged veterans under section 51 of the Internal 

25 Revenue Code of 1986. 

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1 (3) REQUEST FOR DOCUMENTATION.—The De2 partment of Defense or the National Guard, which3 ever is applicable, shall provide upon request the 

4 documentation required by paragraph (1) to any in5 dividual who is discharged or released from duty de6 scribed in subparagraph (A) or (B) of such para7 graph during the 5-year period preceding and in8 cluding the date of the enactment of this Act. 

9 (4) INSTRUCTIONS FOR USE OF WORK OPPOR10 TUNITY CREDIT.—The documentation described in 

11 this paragraph is a document which includes— 

12 (A) instructions for an individual to ensure 

13 treatment as a recently discharged veteran for 

14 purposes of section 51(d)(3)(C) of the Internal 

15 Revenue Code of 1986 (as added by this Act), 

16 (B) instructions for employers detailing the 

17 use of the credit under such section 51 with re18 spect to such individual, and 

19 (C) the dates during which the credit 

20 under such section 51 is available. 

21 Such instructions shall be developed in collaboration 

22 with the Internal Revenue Service. 

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1 SEC. 102. WORK OPPORTUNITY CREDIT MADE PERMANENT 

2 FOR VETERANS. 

3 (a) IN GENERAL.—Paragraph (4) of section 51(c) of 

4 the Internal Revenue Code of 1986 is amended to read 

5 as follows: 

6 ‘‘(4) TERMINATION.—The term ‘wages’ shall 

7 not include any amount paid or incurred to any indi8 vidual who— 

9 ‘‘(A) is not a qualified veteran, and 

10 ‘‘(B) begins work for the employer after 

11 December 31, 2013.’’. 

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

13 subsection (a) applies to individuals who begin work for 

14 the employer after December 31, 2013. 

15 TITLE II—VETERAN EMPLOY16 MENT AND TRAINING SERV17 ICES 

18 SEC. 201. DEFINITIONS. 

19 In this title: 

20 (1) DISABLED VETERAN.—The term ‘‘disabled 

21 veteran’’ has the meaning given the term in section 

22 4211 of title 38, United States Code. 

23 (2) ECONOMICALLY AND EDUCATIONALLY DIS24 ADVANTAGED VETERAN.—The term ‘‘economically 

25 and educationally disadvantaged veteran’’ means 

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1 such a veteran, within the meaning of chapter 41 of 

2 title 38, United States Code. 

3 (3) REHABILITATION PLAN.—The term ‘‘reha4 bilitation plan’’ means an individualized plan formu5 lated for a veteran under section 3107 of title 38, 

6 United States Code, that has an employment objec7 tive. 

8 (4) VETERAN.—The term ‘‘veteran’’ has the 

9 meaning given the term in section 101 of title 38, 

10 United States Code. 

11 (5) VETERAN JOB TRAINING PROGRAM.—The 

12 term ‘‘veteran job training program’’ means— 

13 (A) the Disabled Veterans’ Outreach Pro14 gram carried out under section 4103A of title 

15 38, United States Code; 

16 (B) the Homeless Veterans Reintegration 

17 Program carried out under section 2021 of that 

18 title; 

19 (C) the Local Veterans’ Employment Rep20 resentative Program carried out under section 

21 4104 of that title; 

22 (D) the Transition Assistance Program 

23 carried out under section 1144 of title 10, 

24 United States Code; 

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1 (E) the Veterans Workforce Investment 

2 Program carried out under section 168 of the 

3 Workforce Investment Act of 1998 (29 U.S.C. 

4 2913); and 

5 (F) the Vocational Rehabilitation & Em6 ployment Program carried out under chapter 31 

7 of title 38, United States Code. 

8 (6) VETERAN JOB TRAINING SERVICES.—The 

9 term ‘‘veteran job training services’’ means the serv10 ices provided under a veteran job training program. 

11 SEC. 202. COORDINATION BETWEEN SECRETARY OF LABOR, 

12 SECRETARY OF VETERANS AFFAIRS, AND 

13 SECRETARY OF DEFENSE ON VETERAN JOB 

14 TRAINING. 

15 Not later than 1 year after the date of enactment 

16 of this Act, the Secretary of Labor, the Secretary of Vet17 erans Affairs, and the Secretary of Defense shall enter 

18 into an agreement, covering the 3 departments involved, 

19 to govern the coordination of veteran job training services. 

20 SEC. 203. IMPLEMENTATION REPORTS ON VETERAN JOB 

21 TRAINING PROGRAMS. 

22 (a) REPORT REQUIRED.—The Secretary of Veterans 

23 Affairs and the Secretary of Labor shall prepare an initial 

24 and a final report on the veteran job training programs 

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1 of the Department of Veterans Affairs and Department 

2 of Labor as described in this section. 

3 (b) DEPARTMENT OF VETERANS AFFAIRS.—The 

4 Secretary of Veterans Affairs shall include in each of the 

5 reports required by subsection (a), with regard to the De6 partment of Veterans Affairs, information describing each 

7 of the following: 

8 (1) The actions taken by the department to en9 sure that States receive sufficient guidance to com10 ply with Federal laws regarding veteran job training 

11 programs. 

12 (2) The extent to which the department re13 viewed and incorporated into its operations— 

14 (A) the employment related initiatives of 

15 the Yellow Ribbon Reintegration Program 

16 under section 582 of the National Defense Au17 thorization Act for Fiscal Year 2008 (Public 

18 Law 110–181; 10 U.S.C. 10101 note); and 

19 (B) the conclusions of the Credentialing 

20 and Licensing Task Force of the Department of 

21 Defense. 

22 (3) The extent to which veterans’ employment 

23 outcomes result from participation in the Vocational 

24 Rehabilitation & Employment Program carried out 

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1 under chapter 31 of title 38, United States Code, 

2 rather than from other factors. 

3 (4) Actions taken by the department to ensure 

4 that veterans with a rehabilitation plan receive vet5 eran job training services consistent with the reha6 bilitation plan. 

7 (5) Efforts taken by the department to better 

8 serve veterans living in rural communities. 

9 (c) DEPARTMENT OF LABOR.—The Secretary of 

10 Labor shall include in each of the reports required by sub11 section (a), with regard to the Department of Labor, infor12 mation describing each of the following: 

13 (1) The matters referred to in paragraphs (1), 

14 (2), (3), and (5) of subsection (b). 

15 (2) The extent to which veterans’ employment 

16 outcomes result from participation in the veteran job 

17 training programs specified in subparagraphs (A) 

18 through (E) of section 201(5), rather than from 

19 other factors. 

20 (3) The actions taken by the department to 

21 provide States with clear guidance for determining 

22 which veterans are classified as economically and 

23 educationally disadvantaged veterans, or in other 

24 categories of veterans. 

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1 (4) The progress of the department in clari2 fying its approach to determining which participants 

3 in the Disabled Veterans Outreach Program carried 

4 out under section 4103A of title 38, United States 

5 Code, shall receive intensive services (as defined in 

6 section 134(d)(3) of the Workforce Investment Act 

7 of 1998 (29 U.S.C. 2864(d)(3))). 

8 (5) How the department reports on goals for 

9 performance, and actual performance, on perform10 ance standards or other measures, for each of its 

11 veterans job training programs, including an assess12 ment of how to better monitor employment outcomes 

13 for disabled veterans. 

14 (d) SUBMISSION OF REPORTS.—The Secretary of 

15 Labor and the Secretary of Veterans Affairs shall submit 

16 to Congress— 

17 (1) not later than 1 year after the date of en18 actment of this Act, the initial report required by 

19 subsection (a); and 

20 (2) not later than 2 years after such date, the 

21 final report required by subsection (a). 

22 (e) INTERNET PUBLICATION OF DEPARTMENT OF

23 LABOR DATA ON PERFORMANCE GOALS AND OUT24 COMES.—The Secretary of Labor shall publish on a pub25 licly accessible, user-friendly Internet website the goals 

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1 and actual performance data described in subsection 

2 (c)(4). 

3 SEC. 204. EXPANSION OF PILOT PROGRAM ON RECEIPT OF 

4 CIVILIAN CREDENTIALING FOR SKILLS RE5 QUIRED FOR MILITARY OCCUPATIONAL SPE6 CIALTIES. 

7 Section 558(b)(1) of the National Defense Authoriza8 tion Act for Fiscal Year 2012 (Public Law 112–81; 10 

9 U.S.C. 2015 note) is amended by striking ‘‘not less than 

10 three or more than five’’ and inserting ‘‘the MOS 31B 

11 Military Police, MOS 15Q AC-Air Traffic Controller, and 

12 MOS 12M Fire Protection military occupational special13 ties and not fewer than three and not more than five addi14 tional’’. 

15 SEC. 205. RULE OF CONSTRUCTION. 

16 Nothing in this title shall be construed to affect any 

17 other Federal law specifying a reporting requirement. 

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1 TITLE III—HONORING PROMISES 

2 TO SERVICE-DISABLED VET3 ERANS 

4 SEC. 301. TRANSPARENCY IN CONTRACTING GOALS FOR 

5 SMALL BUSINESS CONCERNS OWNED AND 

6 CONTROLLED BY SERVICE-DISABLED VET7 ERANS. 

8 Section 15 of the Small Business Act (15 U.S.C. 644) 

9 is amended by adding at the end the following: 

10 ‘‘(s) TRANSPARENCY IN CONTRACTING GOALS FOR

11 SMALL BUSINESS CONCERNS OWNED AND CONTROLLED

12 BY SERVICE-DISABLED VETERANS.— 

13 ‘‘(1) DEFINITIONS.—In this subsection— 

14 ‘‘(A) the term ‘covered contractor’ means a 

15 contractor that is required to submit a subcon16 tracting plan under section 8(d) to an Execu17 tive department; 

18 ‘‘(B) the term ‘Executive department’ has 

19 the meaning given that term in section 101 of 

20 title 5, United States Code; and 

21 ‘‘(C) the term ‘physically completed’ has 

22 the meaning given that term in section 4.804– 

23 4 of the Federal Acquisition Regulation, or any 

24 successor thereto. 

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1 ‘‘(2) REPORTS TO ADMINISTRATOR.—Not later 

2 than 1 year after the date of enactment of this sub3 section, and annually thereafter, the head of each 

4 Executive department shall submit to the Adminis5 trator a report that contains— 

6 ‘‘(A) the percentage of the total value of 

7 all prime contracts awarded by the Executive 

8 department to small business concerns owned 

9 and controlled by service-disabled veterans dur10 ing the 1-year period ending on the date of the 

11 report; 

12 ‘‘(B) the name of each covered contractor 

13 to which the Executive department awards a 

14 contract; 

15 ‘‘(C) for each contract awarded to a cov16 ered contractor by the Executive department— 

17 ‘‘(i) the percentage goal negotiated 

18 under section 8(d)(6)(A) for the utilization 

19 as subcontractors of small business con20 cerns owned and controlled by service-dis21 abled veterans; and 

22 ‘‘(ii) if the contract is physically com23 pleted during the 1-year period ending on 

24 the date of the report, the percentage of 

25 the total value of subcontracts entered into 

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1 by the covered contractor awarded to small 

2 business concerns owned and controlled by 

3 service-disabled veterans; 

4 ‘‘(D) the weighted average percentage goal 

5 negotiated by each covered contractor under 

6 section 8(d)(6)(A) for the utilization as sub7 contractors of small business concerns owned 

8 and controlled by service-disabled veterans for 

9 all contracts awarded by the Executive depart10 ment to the covered contractor; 

11 ‘‘(E) for all contracts awarded to covered 

12 contractors by the Executive department that 

13 are physically completed during the 1-year pe14 riod ending on the date of the report, the per15 centage of the total value of all subcontracts 

16 awarded by covered contractors that were 

17 awarded to small business concerns owned and 

18 controlled by service-disabled veterans; and 

19 ‘‘(F) the dollar amount by which the Exec20 utive department exceeded or failed to meet the 

21 Government-wide goals under subsection (g) for 

22 prime contracts and subcontracts awarded to 

23 small business concerns owned and controlled 

24 by service-disabled veterans. 

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1 ‘‘(3) RANKINGS.—For the first full fiscal year 

2 following the date of enactment of this subsection, 

3 and each fiscal year thereafter, the Administrator 

4 shall rank— 

5 ‘‘(A) the Executive departments, based 

6 on— 

7 ‘‘(i) the percentage of the total value 

8 of prime contracts awarded by the Execu9 tive departments to small business con10 cerns owned and controlled by service-dis11 abled veterans; and 

12 ‘‘(ii) the percentage of the total value 

13 of subcontracts awarded by covered con14 tractors that are awarded contracts by the 

15 Executive departments to small business 

16 concerns owned and controlled by service17 disabled veterans; and 

18 ‘‘(B) covered contractors, based on the 

19 percentage of the total value of subcontracts 

20 awarded by the covered contractors to small 

21 business concerns owned and controlled by serv22 ice-disabled veterans. 

23 ‘‘(4) PUBLICATION.— 

24 ‘‘(A) WEBSITE.—Except as provided in 

25 subparagraph (B), the Administrator shall pubmstockstill on DSK4VPTVN1PROD with BILLS

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1 lish on a website accessible to the public a user2 friendly, electronically searchable report con3 taining— 

4 ‘‘(i) the information submitted to the 

5 Administrator under paragraph (2); and 

6 ‘‘(ii) the rankings made by the Ad7 ministrator under paragraph (3). 

8 ‘‘(B) EXCEPTION FOR NATIONAL SECU9 RITY.—If the head of an Executive department 

10 determines that publication of information con11 tained in a report submitted under paragraph 

12 (2) would be detrimental to national security, 

13 the Administrator shall not publish the infor14 mation on the website described in subpara15 graph (A). 

16 ‘‘(C) UPDATING.—The Administrator shall 

17 update the contents of the website described in 

18 subparagraph (A) not less frequently than an19 nually. 

20 ‘‘(5) REPORTS TO CONGRESS.— 

21 ‘‘(A) ANNUAL REPORT.—The Adminis22 trator shall submit to Congress an annual re23 port on the progress of each Executive depart24 ment toward meeting the Government-wide 

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1 goals for contracting and subcontracting estab2 lished under subsection (g). 

3 ‘‘(B) CONTENTS.—Each report under this 

4 paragraph shall include— 

5 ‘‘(i) a statement of whether the 

6 website described in paragraph (4) con7 tains the latest data reported to the Ad8 ministrator by the Executive departments; 

9 and 

10 ‘‘(ii) a recommendation of a prime 

11 contractor that should be recognized by 

12 Congress for outstanding progress in con13 tracting with small business concerns 

14 owned and controlled by service-disabled 

15 veterans. 

16 ‘‘(6) RULE OF CONSTRUCTION.—Nothing in 

17 this subsection may be construed to affect any other 

18 reporting requirement under Federal law.’’. 

Æ 

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