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[107th Congress Public Law 288]
[From the U.S. Government Printing Office]

<DOC>
[DOCID: f:publ288.107]

[[Page 116 STAT. 2033]]

Public Law 107-288
107th Congress

                                 An Act

 
To amend title 38, United States Code, to revise and improve employment, 
 training, and placement services furnished to veterans, and for other 
            purposes. <<NOTE: Nov. 7, 2002 -  [H.R. 4015]>> 

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress <<NOTE: Jobs for Veterans 
Act.>> assembled,

SECTION 1. SHORT TITLE; REFERENCES TO TITLE 38, UNITED STATES CODE.

    (a) Short Title.--This <<NOTE: 38 USC 101 note.>> Act may be cited 
as the ``Jobs for Veterans Act''.

    (b) References to Title 38, United States Code.--Except as otherwise 
expressly provided, whenever in this Act an amendment or repeal is 
expressed in terms of an amendment to, or repeal of, a section or other 
provision, the reference shall be considered to be made to a section or 
other provision of title 38, United States Code.

SEC. 2. PRIORITY OF SERVICE FOR VETERANS IN DEPARTMENT OF LABOR JOB 
            TRAINING PROGRAMS.

    (a) Veterans' Job Training Assistance.--(1) Chapter 42 is amended by 
adding at the end the following new section:

``Sec. 4215. Priority of service for veterans in Department of Labor job 
                        training programs

    ``(a) Definitions.--In this section:
            ``(1) The term `covered person' means any of the following 
        individuals:
                    ``(A) A veteran.
                    ``(B) The spouse of any of the following 
                individuals:
                          ``(i) Any veteran who died of a service-
                      connected disability.
                          ``(ii) Any member of the Armed Forces serving 
                      on active duty who, at the time of application for 
                      assistance under this section, is listed, pursuant 
                      to section 556 of title 37 and regulations issued 
                      thereunder, by the Secretary concerned in one or 
                      more of the following categories and has been so 
                      listed for a total of more than 90 days: (I) 
                      missing in action, (II) captured in line of duty 
                      by a hostile force, or (III) forcibly detained or 
                      interned in line of duty by a foreign government 
                      or power.
                          ``(iii) Any veteran who has a total disability 
                      resulting from a service-connected disability.
                          ``(iv) Any veteran who died while a disability 
                      so evaluated was in existence.

[[Page 116 STAT. 2034]]

            ``(2) The term `qualified job training program' means any 
        workforce preparation, development, or delivery program or 
        service that is directly funded, in whole or in part, by the 
        Department of Labor and includes the following:
                    ``(A) Any such program or service that uses 
                technology to assist individuals to access workforce 
                development programs (such as job and training 
                opportunities, labor market information, career 
                assessment tools, and related support services).
                    ``(B) Any such program or service under the public 
                employment service system, one-stop career centers, the 
                Workforce Investment Act of 1998, a demonstration or 
                other temporary program, and those programs implemented 
                by States or local service providers based on Federal 
                block grants administered by the Department of Labor.
                    ``(C) Any such program or service that is a 
                workforce development program targeted to specific 
                groups.
            ``(3) The term `priority of service' means, with respect to 
        any qualified job training program, that a covered person shall 
        be given priority over nonveterans for the receipt of 
        employment, training, and placement services provided under that 
        program, notwithstanding any other provision of law.

    ``(b) Entitlement to Priority of Service.--(1) A covered person is 
entitled to priority of service under any qualified job training program 
if the person otherwise meets the eligibility requirements for 
participation in such program.
    ``(2) The Secretary of Labor may establish priorities among covered 
persons for purposes of this section to take into account the needs of 
disabled veterans and special disabled veterans, and such other factors 
as the Secretary determines appropriate.
    ``(c) Administration of Programs at State and Local Levels.--An 
entity of a State or a political subdivision of the State that 
administers or delivers services under a qualified job training program 
shall--
            ``(1) provide information and priority of service to covered 
        persons regarding benefits and services that may be obtained 
        through other entities or service providers; and
            ``(2) ensure that each covered person who applies to or who 
        is assisted by such a program is informed of the employment-
        related rights and benefits to which the person is entitled 
        under this section.

    ``(d) Addition to Annual Report.--In the annual report required 
under section 4107(c) of this title for the program year beginning in 
2003 and each subsequent program year, the Secretary of Labor shall 
evaluate whether covered persons are receiving priority of service and 
are being fully served by qualified job training programs, and whether 
the representation of veterans in such programs is in proportion to the 
incidence of representation of veterans in the labor market, including 
within groups that the Secretary may designate for priority under such 
programs, if any.''.
    (2) The table of sections at the beginning of chapter 42 is amended 
by inserting after the item relating to section 4214 the following new 
item:

``4215. Priority of service for veterans in Department of Labor job 
           training programs.''.

    (b) Employment of Veterans With Respect to Federal Contracts.--(1) 
Section 4212(a) is amended to read as follows:

[[Page 116 STAT. 2035]]

    ``(a)(1) Any contract in the amount of $100,000 or more entered into 
by any department or agency of the United States for the procurement of 
personal property and nonpersonal services (including construction) for 
the United States, shall contain a provision requiring that the party 
contracting with the United States take affirmative action to employ and 
advance in employment qualified covered veterans. This section applies 
to any subcontract in the amount of $100,000 or more entered into by a 
prime contractor in carrying out any such contract.
    ``(2) <<NOTE: Regulations.>> In addition to requiring affirmative 
action to employ such qualified covered veterans under such contracts 
and subcontracts and in order to promote the implementation of such 
requirement, the Secretary of Labor shall prescribe regulations 
requiring that--
            ``(A) each such contractor for each such contract shall 
        immediately list all of its employment openings with the 
        appropriate employment service delivery system (as defined in 
        section 4101(7) of this title), and may also list such openings 
        with one-stop career centers under the Workforce Investment Act 
        of 1998, other appropriate service delivery points, or America's 
        Job Bank (or any additional or subsequent national electronic 
        job bank established by the Department of Labor), except that 
        the contractor may exclude openings for executive and senior 
        management positions and positions which are to be filled from 
        within the contractor's organization and positions lasting three 
        days or less;
            ``(B) each such employment service delivery system shall 
        give such qualified covered veterans priority in referral to 
        such employment openings; and
            ``(C) each such employment service delivery system shall 
        provide a list of such employment openings to States, political 
        subdivisions of States, or any private entities or organizations 
        under contract to carry out employment, training, and placement 
        services under chapter 41 of this title.

    ``(3) In this section:
            ``(A) The term `covered veteran' means any of the following 
        veterans:
                    ``(i) Disabled veterans.
                    ``(ii) Veterans who served on active duty in the 
                Armed Forces during a war or in a campaign or expedition 
                for which a campaign badge has been authorized.
                    ``(iii) Veterans who, while serving on active duty 
                in the Armed Forces, participated in a United States 
                military operation for which an Armed Forces service 
                medal was awarded pursuant to Executive Order No. 12985 
                (61 Fed. Reg. 1209).
                    ``(iv) Recently separated veterans.
            ``(B) The term `qualified', with respect to an employment 
        position, means having the ability to perform the essential 
        functions of the position with or without reasonable 
        accommodation for an individual with a disability.''.

    (2)(A) Section 4212(c) is amended--
            (i) by striking ``suitable''; and
            (ii) by striking ``subsection (a)(2) of this section'' and 
        inserting ``subsection (a)(2)(B)''.

    (B) Section 4212(d)(1) is amended--
            (i) in the matter preceding subparagraph (A), by striking 
        ``of this section'' after ``subsection (a)''; and

[[Page 116 STAT. 2036]]

            (ii) by amending subparagraphs (A) and (B) to read as 
        follows:
            ``(A) the number of employees in the workforce of such 
        contractor, by job category and hiring location, and the number 
        of such employees, by job category and hiring location, who are 
        qualified covered veterans;
            ``(B) the total number of new employees hired by the 
        contractor during the period covered by the report and the 
        number of such employees who are qualified covered veterans; 
        and''.

    (C) Section 4212(d)(2) is amended by striking ``of this subsection'' 
after ``paragraph (1)''.
    (D) Section 4211(6) is amended by striking ``one-year period'' and 
inserting ``three-year period''.
    (3) <<NOTE: Applicability. Effective date.>> The amendments made by 
this subsection shall apply with respect to contracts entered into on or 
after the first day of the first month that begins 12 months after the 
date of the enactment of this Act.

    (c) Employment Within the Federal Government.--(1) Section 
4214(a)(1) is amended--
            (A) in the first sentence, by striking ``life'' and all that 
        follows and inserting ``life.''; and
            (B) in the second sentence, by striking ``major'' and 
        inserting ``uniquely qualified''.

    (2) Section 4214(b) is amended--
            (A) in paragraph (1), by striking ``readjustment'' and 
        inserting ``recruitment'';
            (B) in paragraph (2), by striking ``to--'' and all that 
        follows through the period at the end and inserting ``to 
        qualified covered veterans.'';
            (C) in paragraph (3), to read as follows:

    ``(3) A qualified covered veteran may receive such an appointment at 
any time.''.
    (3)(A) Section 4214(a) is amended--
            (i) in the third sentence of paragraph (1), by striking 
        ``disabled veterans and certain veterans of the Vietnam era and 
        of the post-Vietnam era'' and inserting ``qualified covered 
        veterans (as defined in paragraph (2)(B))''; and
            (ii) in paragraph (2), to read as follows:

    ``(2) In this section:
            ``(A) The term `agency' has the meaning given the term 
        `department or agency' in section 4211(5) of this title.
            ``(B) The term `qualified covered veteran' means a veteran 
        described in section 4212(a)(3) of this title.''.

    (B) Clause (i) of section 4214(e)(2)(B) is amended by striking ``of 
the Vietnam era''.
    (C) Section 4214(g) is amended--
            (i) by striking ``qualified'' the first place it occurs and 
        all that follows through ``era'' the first place it occurs and 
        inserting ``qualified covered veterans''; and
            (ii) by striking ``under section 1712A of this title'' and 
        all that follows and inserting ``under section 1712A of this 
        title.''.

    (4) <<NOTE: Applicability. 38 USC 4214 note.>> The amendments made 
by this subsection shall apply to qualified covered veterans without 
regard to any limitation relating to the date of the veteran's last 
discharge or release from active duty that may have otherwise applied 
under section 4214(b)(3) 

[[Page 116 STAT. 2037]]

as in effect on the date before the date of the enactment of this Act.

SEC. 3. FINANCIAL AND NON-FINANCIAL PERFORMANCE INCENTIVE AWARDS FOR 
            QUALITY VETERANS EMPLOYMENT, TRAINING, AND PLACEMENT 
            SERVICES.

    (a) Performance Incentive Awards for Quality Employment, Training, 
and Placement Services.--Chapter 41 is amended by adding at the end the 
following new section:

``Sec. 4112. Performance incentive awards for quality employment, 
                        training, and placement services

    ``(a) Criteria for Performance Incentive Awards.--(1) For purposes 
of carrying out a program of performance incentive awards under section 
4102A(c)(2)(A)(i)(III) of this title, the Secretary, acting through the 
Assistant Secretary of Labor for Veterans' Employment and Training, 
shall establish criteria for performance incentive awards programs to be 
administered by States to--
            ``(A) encourage the improvement and modernization of 
        employment, training, and placement services provided under this 
        chapter; and
            ``(B) recognize eligible employees for excellence in the 
        provision of such services or for having made demonstrable 
        improvements in the provision of such services.

    ``(2) The Secretary shall establish such criteria in consultation 
with representatives of States, political subdivisions of States, and 
other providers of employment, training, and placement services under 
the Workforce Investment Act of 1998 consistent with the performance 
measures established under section 4102A(b)(7) of this title.
    ``(b) Form of Awards.--Under the criteria established by the 
Secretary for performance incentive awards to be administered by States, 
an award under such criteria may be a cash award or such other 
nonfinancial awards as the Secretary may specify.
    ``(c) Relationship of Award to Grant Program and Employee 
Compensation.--Performance incentive cash awards under this section--
            ``(1) shall be made from amounts allocated from the grant or 
        contract amount for a State for a program year under section 
        4102A(c)(7) of this title; and
            ``(2) is in addition to the regular pay of the recipient.

    ``(d) Eligible Employee Defined.--In this section, the term 
`eligible employee' means any of the following:
            ``(1) A disabled veterans' outreach program specialist.
            ``(2) A local veterans' employment representative.
            ``(3) An individual providing employment, training, and 
        placement services to veterans under the Workforce Investment 
        Act of 1998 or through an employment service delivery system (as 
        defined in section 4101(7) of this title).''.

[[Page 116 STAT. 2038]]

    (b) Clerical Amendment.--The table of sections at the beginning of 
chapter 41 is amended by adding at the end the following new item:

``4112. Performance incentive awards for quality employment, training, 
           and placement services.''.

SEC. 4. REFINEMENT OF JOB TRAINING AND PLACEMENT FUNCTIONS OF THE 
            DEPARTMENT.

    (a) Revision of Department Level Senior Officials and Functions.--
(1) Sections 4102A and 4103 are amended to read as follows:

``Sec. 4102A. Assistant Secretary of Labor for Veterans' Employment and 
                        Training; program functions; Regional 
                        Administrators

    ``(a) Establishment of Position of Assistant Secretary of Labor for 
Veterans' Employment and Training.--(1) There is established within the 
Department of Labor an Assistant Secretary of Labor for Veterans' 
Employment and Training, appointed by the President by and with the 
advice and consent of the Senate, who shall formulate and implement all 
departmental policies and procedures to carry out (A) the purposes of 
this chapter, chapter 42, and chapter 43 of this title, and (B) all 
other Department of Labor employment, unemployment, and training 
programs to the extent they affect veterans.
    ``(2) The employees of the Department of Labor administering chapter 
43 of this title shall be administratively and functionally responsible 
to the Assistant Secretary of Labor for Veterans' Employment and 
Training.
    ``(3)(A) There shall be within the Department of Labor a Deputy 
Assistant Secretary of Labor for Veterans' Employment and Training. The 
Deputy Assistant Secretary shall perform such functions as the Assistant 
Secretary of Labor for Veterans' Employment and Training prescribes.
    ``(B) No individual may be appointed as a Deputy Assistant Secretary 
of Labor for Veterans' Employment and Training unless the individual has 
at least five years of service in a management position as an employee 
of the Federal civil service or comparable service in a management 
position in the Armed Forces. For purposes of determining such service 
of an individual, there shall be excluded any service described in 
subparagraphs (A), (B), and (C) of section 308(d)(2) of this title.
    ``(b) Program Functions.--The Secretary shall carry out the 
following functions:
            ``(1) Except as expressly provided otherwise, carry out all 
        provisions of this chapter and chapter 43 of this title through 
        the Assistant Secretary of Labor for Veterans' Employment and 
        Training and administer through such Assistant Secretary all 
        programs under the jurisdiction of the Secretary for the 
        provision of employment and training services designed to meet 
        the needs of all veterans and persons eligible for services 
        furnished under this chapter.
            ``(2) In order to make maximum use of available resources in 
        meeting such needs, encourage all such programs, and all 
        grantees and contractors under such programs to enter into 
        cooperative arrangements with private industry and business 
        concerns (including small business concerns owned by veterans

[[Page 116 STAT. 2039]]

        or disabled veterans), educational institutions, trade 
        associations, and labor unions.
            ``(3) Ensure that maximum effectiveness and efficiency are 
        achieved in providing services and assistance to eligible 
        veterans under all such programs by coordinating and consulting 
        with the Secretary of Veterans Affairs with respect to (A) 
        programs conducted under other provisions of this title, with 
        particular emphasis on coordination of such programs with 
        readjustment counseling activities carried out under section 
        1712A of this title, apprenticeship or other on-the-job training 
        programs carried out under section 3687 of this title, and 
        rehabilitation and training activities carried out under chapter 
        31 of this title and (B) determinations covering veteran 
        population in a State.
            ``(4) Ensure that employment, training, and placement 
        activities are carried out in coordination and cooperation with 
        appropriate State public employment service officials.
            ``(5) Subject to subsection (c), make available for use in 
        each State by grant or contract such funds as may be necessary 
        to support--
                    ``(A) disabled veterans' outreach program 
                specialists appointed under section 4103A(a)(1) of this 
                title,
                    ``(B) local veterans' employment representatives 
                assigned under section 4104(b) of this title, and
                    ``(C) the reasonable expenses of such specialists 
                and representatives described in subparagraphs (A) and 
                (B), respectively, for training, travel, supplies, and 
                other business expenses, including travel expenses and 
                per diem for attendance at the National Veterans' 
                Employment and Training Services Institute established 
                under section 4109 of this title.
            ``(6) Monitor and supervise on a continuing basis the 
        distribution and use of funds provided for use in the States 
        under paragraph (5).
            ``(7) Establish, and update as appropriate, a comprehensive 
        performance accountability system (as described in subsection 
        (f)) and carry out annual performance reviews of veterans 
        employment, training, and placement services provided through 
        employment service delivery systems, including through disabled 
        veterans' outreach program specialists and through local 
        veterans' employment representatives in States receiving grants, 
        contracts, or awards under this chapter.

    ``(c) Conditions for Receipt of Funds.--(1) The distribution and use 
of funds under subsection (b)(5) in order to carry out sections 4103A(a) 
and 4104(a) of this title shall be subject to the continuing supervision 
and monitoring of the Secretary and shall not be governed by the 
provisions of any other law, or any regulations prescribed thereunder, 
that are inconsistent with this section or section 4103A or 4104 of this 
title.
    ``(2)(A) A State shall submit to the Secretary an application for a 
grant or contract under subsection (b)(5). The application shall contain 
the following information:
            ``(i) A plan that describes the manner in which the State 
        shall furnish employment, training, and placement services 
        required under this chapter for the program year, including a 
        description of--

[[Page 116 STAT. 2040]]

                    ``(I) duties assigned by the State to disabled 
                veterans' outreach program specialists and local 
                veterans' employment representatives consistent with the 
                requirements of sections 4103A and 4104 of this title;
                    ``(II) the manner in which such specialists and 
                representatives are integrated in the employment service 
                delivery systems in the State; and
                    ``(III) the program of performance incentive awards 
                described in section 4112 of this title in the State for 
                the program year.
            ``(ii) The veteran population to be served.
            ``(iii) Such additional information as the Secretary may 
        require to make a determination with respect to awarding a grant 
        or contract to the State.

    ``(B)(i) Subject to the succeeding provisions of this subparagraph, 
of the amount available under subsection (b)(5) for a fiscal year, the 
Secretary shall make available to each State with an application 
approved by the Secretary an amount of funding in proportion to the 
number of veterans seeking employment using such criteria as the 
Secretary may establish in regulation, including civilian labor force 
and unemployment data, for the State on an annual basis. The proportion 
of funding shall reflect the ratio of--
            ``(I) the total number of veterans residing in the State 
        that are seeking employment; to
            ``(II) the total number of veterans seeking employment in 
        all States.

    ``(ii) <<NOTE: Effective date.>> The Secretary shall phase in over 
the three fiscal-year period that begins on October 1, 2002, the manner 
in which amounts are made available to States under subsection (b)(5) 
and this subsection, as amended by the Jobs for Veterans Act.

    ``(iii) In carrying out this paragraph, the Secretary may establish 
minimum funding levels and hold-harmless criteria for States.
    ``(3)(A)(i) As a condition of a grant or contract under this section 
for a program year, in the case of a State that the Secretary determines 
has an entered-employment rate for veterans that is deficient for the 
preceding program year, the State shall develop a corrective action plan 
to improve that rate for veterans in the State.
    ``(ii) The State shall submit the corrective action plan to the 
Secretary for approval, and if approved, shall expeditiously implement 
the plan.
    ``(iii) If the Secretary does not approve a corrective action plan 
submitted by the State under clause (i), the Secretary shall take such 
steps as may be necessary to implement corrective actions in the State 
to improve the entered-employment rate for veterans in that State.
    ``(B) <<NOTE: Regulations.>> To carry out subparagraph (A), the 
Secretary shall establish in regulations a uniform national threshold 
entered-employment rate for veterans for a program year by which 
determinations of deficiency may be made under subparagraph (A).

    ``(C) In making a determination with respect to a deficiency under 
subparagraph (A), the Secretary shall take into account the applicable 
annual unemployment data for the State and consider other factors, such 
as prevailing economic conditions, that affect performance of 
individuals providing employment, training, and placement services in 
the State.

[[Page 116 STAT. 2041]]

    ``(4) In determining the terms and conditions 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 take into 
account--
            ``(A) the results of reviews, carried out pursuant to 
        subsection (b)(7), of the performance of the employment, 
        training, and placement service delivery system in the State, 
        and
            ``(B) the monitoring carried out under this section.

    ``(5) Each grant or contract by which funds are made available to a 
State shall contain a provision requiring the recipient of the funds--
            ``(A) to comply with the provisions of this chapter; and
            ``(B) on an annual basis, to notify the Secretary of, and 
        provide supporting rationale for, each nonveteran who is 
        employed as a disabled veterans' outreach program specialist and 
        local veterans' employment representative for a period in excess 
        of 6 months.

    ``(6) Each State shall coordinate employment, training, and 
placement services furnished to veterans and eligible persons under this 
chapter with such services furnished with respect to such veterans and 
persons under the Workforce Investment Act of 1998 and the Wagner-Peyser 
Act.
    ``(7) With respect to program years beginning during or after fiscal 
year 2004, one percent of the amount 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 for the program year shall be for the purposes of 
making cash awards under the program of performance incentive awards 
described in section 4112 of this title in the State.
    ``(d) Participation in Other Federally Funded Job Training 
Programs.--The Assistant Secretary of Labor for Veterans' Employment and 
Training shall promote and monitor participation of qualified veterans 
and eligible persons in employment and training opportunities under 
title I of the Workforce Investment Act of 1998 and other federally 
funded employment and training programs.
    ``(e) Regional Administrators.--(1) The Secretary shall assign to 
each region for which the Secretary operates a regional office a 
representative of the Veterans' Employment and Training Service to serve 
as the Regional Administrator for Veterans' Employment and Training in 
such region.
    ``(2) Each such Regional Administrator shall carry out such duties 
as the Secretary may require to promote veterans employment and 
reemployment within the region that the Administrator serves.
    ``(f) Establishment <<NOTE: Deadline.>> of Performance Standards and 
Outcomes Measures.--(1) By not later than 6 months after the date of the 
enactment of this section, the Assistant Secretary of Labor for 
Veterans' Employment and Training shall establish and implement a 
comprehensive performance accountability system to measure the 
performance of employment service delivery systems, including disabled 
veterans' outreach program specialists and local veterans' employment 
representatives providing employment, training, and placement services 
under this chapter in a State to provide accountability of that State to 
the Secretary for purposes of subsection (c).

    ``(2) Such standards and measures shall--

[[Page 116 STAT. 2042]]

            ``(A) be consistent with State performance measures 
        applicable under section 136(b) of the Workforce Investment Act 
        of 1998; and
            ``(B) be appropriately weighted to provide special 
        consideration for placement of (i) veterans requiring intensive 
        services (as defined in section 4101(9) of this title), such as 
        special disabled veterans and disabled veterans, and (ii) 
        veterans who enroll in readjustment counseling under section 
        1712A of this title.

    ``(g) Authority to Provide Technical Assistance to States.--The 
Secretary may provide such technical assistance as the Secretary 
determines appropriate to any State that the Secretary determines has, 
or may have, an entered-employment rate in the State that is deficient, 
as determined under subsection (c)(3) with respect to a program year, 
including assistance in the development of a corrective action plan 
under that subsection.

``Sec. 4103. Directors and Assistant Directors for Veterans' Employment 
                        and Training; additional Federal personnel

    ``(a) Directors and Assistant Directors.--(1) The Secretary shall 
assign to each State a representative of the Veterans' Employment and 
Training Service to serve as the Director for Veterans' Employment and 
Training, and shall assign full-time Federal clerical or other support 
personnel to each such Director.
    ``(2) Each Director for Veterans' Employment and Training for a 
State shall, at the time of appointment, have been a bona fide resident 
of the State for at least two years.
    ``(3) Full-time Federal clerical or other support personnel assigned 
to Directors for Veterans' Employment and Training shall be appointed in 
accordance with the provisions of title 5 governing appointments in the 
competitive service and shall be paid in accordance with the provisions 
of chapter 51 and subchapter III of chapter 53 of title 5.
    ``(b) Additional Federal Personnel.--The Secretary may also assign 
as supervisory personnel such representatives of the Veterans' 
Employment and Training Service as the Secretary determines appropriate 
to carry out the employment, training, and placement services required 
under this chapter, including Assistant Directors for Veterans' 
Employment and Training.''.
    (2) The items relating to sections 4102A and 4103, respectively, in 
the table of sections at the beginning of chapter 41 are amended to read 
as follows:

``4102A. Assistant Secretary of Labor for Veterans' Employment and 
           Training; program functions; Regional Administrators.
``4103. Directors and Assistant Directors for Veterans' Employment and 
           Training; additional Federal personnel.''.

    (3)(A)(i) Section 4104A is repealed.
    (ii) The table of sections at the beginning of chapter 41 is amended 
by striking the item relating to section 4104A.
    (B) Section 4107(b) is amended by striking ``The Secretary shall 
establish definitive performance standards'' and inserting ``The 
Secretary shall apply performance standards established under section 
4102A(f) of this title''.
    (4) <<NOTE: 38 USC 4102A note.>> The amendments made by this 
subsection shall take effect on the date of the enactment of this Act, 
and apply for program 

[[Page 116 STAT. 2043]]

and fiscal years under chapter 41 of title 38, United States Code, 
beginning on or after such date.
    (b) Revision of Statutorily Defined Duties of Disabled Veterans' 
Outreach Program Specialists and Local Veterans' Employment 
Representatives.--(1) Section 4103A is amended by striking all after the 
heading and inserting the following:
    ``(a) Requirement for Employment by States of a Sufficient Number of 
Specialists.--(1) Subject to approval by the Secretary, a State shall 
employ such full- or part-time disabled veterans' outreach program 
specialists as the State determines appropriate and efficient to carry 
out intensive services under this chapter to meet the employment needs 
of eligible veterans with the following priority in the provision of 
services:
            ``(A) Special disabled veterans.
            ``(B) Other disabled veterans.
            ``(C) Other eligible veterans in accordance with priorities 
        determined by the Secretary taking into account applicable rates 
        of unemployment and the employment emphases set forth in chapter 
        42 of this title.

    ``(2) In the provision of services in accordance with this 
subsection, maximum emphasis in meeting the employment needs of veterans 
shall be placed on assisting economically or educationally disadvantaged 
veterans.
    ``(b) Requirement for Qualified Veterans.--A State shall, to the 
maximum extent practicable, employ qualified veterans to carry out the 
services referred to in subsection (a). Preference shall be given in the 
appointment of such specialists to qualified disabled veterans.''.
    (2) Section 4104 is amended by striking all after the heading and 
inserting the following:
    ``(a) Requirement for Employment by States of a Sufficient Number of 
Representatives.--Subject to approval by the Secretary, a State shall 
employ such full- and part-time local veterans' employment 
representatives as the State determines appropriate and efficient to 
carry out employment, training, and placement services under this 
chapter.
    ``(b) Principal Duties.--As principal duties, local veterans' 
employment representatives shall--
            ``(1) conduct outreach to employers in the area to assist 
        veterans in gaining employment, including conducting seminars 
        for employers and, in conjunction with employers, conducting job 
        search workshops and establishing job search groups; and
            ``(2) facilitate employment, training, and placement 
        services furnished to veterans in a State under the applicable 
        State employment service delivery systems.

    ``(c) Requirement for Qualified Veterans and Eligible Persons.--A 
State shall, to the maximum extent practicable, employ qualified 
veterans or eligible persons to carry out the services referred to in 
subsection (a). Preference shall be accorded in the following order:
            ``(1) To qualified service-connected disabled veterans.
            ``(2) If no veteran described in paragraph (1) is available, 
        to qualified eligible veterans.
            ``(3) If no veteran described in paragraph (1) or (2) is 
        available, then to qualified eligible persons.

    ``(d) Reporting.--Each local veterans' employment representative 
shall be administratively responsible to the manager of the

[[Page 116 STAT. 2044]]

employment service delivery system and shall provide reports, not less 
frequently than quarterly, to the manager of such office and to the 
Director for Veterans' Employment and Training for the State regarding 
compliance with Federal law and regulations with respect to special 
services and priorities for eligible veterans and eligible persons.''.
    (3) <<NOTE: Effective date. 38 USC 4103A note.>> The amendments made 
by this subsection shall take effect on the date of the enactment of 
this Act, and apply for program years under chapter 41 of title 38, 
United States Code, beginning on or after such date.

    (c) Requirement <<NOTE: Deadline. 38 USC 4215 note.>> To Promptly 
Establish One-Stop Employment Services.--By not later than 18 months 
after the date of the enactment of this Act, the Secretary of Labor 
shall provide one-stop services and assistance to covered persons 
electronically by means of the Internet, as defined in section 231(e)(3) 
of the Communications Act of 1934, and such other electronic means to 
enhance the delivery of such services and assistance.

    (d) Requirement for Budget Line Item for Training Services 
Institute.--(1) The last sentence of section 4106(a) is amended to read 
as follows: ``Each budget submission with respect to such funds shall 
include a separate listing of the amount for the National Veterans' 
Employment and Training Services Institute together with information 
demonstrating the compliance of such budget submission with the funding 
requirements specified in the preceding sentence.''.
    (2) <<NOTE: 38 USC 4106 note.>> The amendment made by paragraph (1) 
shall take effect on the date of the enactment of this Act, and apply to 
budget submissions for fiscal year 2004 and each subsequent fiscal year.

    (e) Conforming Amendments.--(1) Section 4107(c)(5) is amended by 
striking ``(including the need'' and all that follows through 
``representatives)''.
    (2) Section 3117(a)(2)(B) is amended to read as follows:
            ``(B) utilization of employment, training, and placement 
        services under chapter 41 of this title; and''.

SEC. 5. ADDITIONAL IMPROVEMENTS IN VETERANS EMPLOYMENT AND TRAINING 
            SERVICES.

    (a) Inclusion of Intensive Services.--(1)(A) Section 4101 is amended 
by adding at the end the following new paragraph:
            ``(9) The term `intensive services' means local employment 
        and training services of the type described in section 134(d)(3) 
        of the Workforce Investment Act of 1998.''.

    (B) Section 4102 is amended by striking ``job and job training 
counseling service program,'' and inserting ``job and job training 
intensive services program,''.
    (C) Section 4106(a) is amended by striking ``proper counseling'' and 
inserting ``proper intensive services''.
    (D) Section 4107(a) is amended by striking ``employment counseling 
services'' and inserting ``intensive services''.
    (E) Section 4107(c)(1) is amended by striking ``the number 
counseled'' and inserting ``the number who received intensive 
services''.
    (F) Section 4109(a) is amended by striking ``counseling,'' each 
place it appears and inserting ``intensive services,''.
    (2) <<NOTE: Effective date. 38 USC 4101 note.>> The amendments made 
by paragraph (1) shall take effect on the date of the enactment of this 
Act.

[[Page 116 STAT. 2045]]

    (b) Additional VETS Duty To Implement Transitions to Civilian 
Careers.--(1)(A) Section 4102 is amended by striking the period and 
inserting ``, including programs carried out by the Veterans' Employment 
and Training Service to implement all efforts to ease the transition of 
servicemembers to civilian careers that are consistent with, or an 
outgrowth of, the military experience of the servicemembers.''.
    (B) Such section is further amended by striking ``and veterans of 
the Vietnam era'' and inserting ``and veterans who served on active duty 
during a war or in a campaign or expedition for which a campaign badge 
has been authorized''.
    (2) <<NOTE: Effective date. 38 USC 4102 note.>> The amendments made 
by paragraph (1) shall take effect on the date of the enactment of this 
Act.

    (c) Modernization of Employment Service Delivery Points To Include 
Technological Innovations.--(1) Section 4101(7) is amended to read as 
follows:
            ``(7) The term `employment service delivery system' means a 
        service delivery system at which or through which labor exchange 
        services, including employment, training, and placement 
        services, are offered in accordance with the Wagner-Peyser 
        Act.''.

    (2) <<NOTE: Effective date. 38 USC 4101 note.>> The amendments made 
by paragraph (1) shall take effect on the date of the enactment of this 
Act.

    (d) Increase in Accuracy of Reporting Services Furnished to 
Veterans.--(1)(A) Section 4107(c)(1) is amended--
            (i) by striking ``veterans of the Vietnam era,''; and
            (ii) by striking ``and eligible persons who registered for 
        assistance with'' and inserting ``eligible persons, recently 
        separated veterans (as defined in section 4211(6) of this 
        title), and servicemembers transitioning to civilian careers who 
        registered for assistance with, or who are identified as 
        veterans by,''.

    (B) Section 4107(c)(2) is amended--
            (i) by striking ``the job placement rate'' the first place 
        it appears and inserting ``the rate of entered employment (as 
        determined in a manner consistent with State performance 
        measures applicable under section 136(b) of the Workforce 
        Investment Act of 1998)''; and
            (ii) by striking ``the job placement rate'' the second place 
        it appears and inserting ``such rate of entered employment (as 
        so determined)''.

    (C) Section 4107(c)(4) is amended by striking ``sections 4103A and 
4104'' and inserting ``section 4212(d)''.
    (D) Section 4107(c) is amended--
            (i) by striking ``and'' at the end of paragraph (4);
            (ii) by striking the period at the end of paragraph (5) and 
        inserting ``; and''; and
            (iii) by adding at the end the following new paragraph:
            ``(6) a report on the operation during the preceding program 
        year of the program of performance incentive awards for quality 
        employment services under section 4112 of this title.''.

    (E) <<NOTE: Deadline. Reports.>> Section 4107(b), as amended by 
section 4(a)(3)(B), is further amended by striking the second sentence 
and inserting the following: ``Not later than February 1 of each year, 
the Secretary shall report to the Committees on Veterans' Affairs of the 
Senate and the House of Representatives on the performance of States and 
organizations and entities carrying out employment, training, 

[[Page 116 STAT. 2046]]

and placement services under this chapter, as measured under subsection 
(b)(7) of section 4102A of this title. In the case of a State that the 
Secretary determines has not met the minimum standard of performance 
(established by the Secretary under subsection (f) of such section), the 
Secretary shall include an analysis of the extent and reasons for the 
State's failure to meet that minimum standard, together with the State's 
plan for corrective action during the succeeding year.''.
    (2) <<NOTE: Applicability. 38 USC 4107 note.>> The amendments made 
by paragraph (1) shall apply to reports for program years beginning on 
or after July 1, 2003.

    (e) Clarification of Authority of NVETSI To Provide Training for 
Personnel of Other Departments and Agencies.--Section 4109 is amended by 
adding at the end the following new subsection:
    ``(c)(1) Nothing in this section shall be construed as preventing 
the Institute to enter into contracts or agreements with departments or 
agencies of the United States or of a State, or with other 
organizations, to carry out training of personnel of such departments, 
agencies, or organizations in the provision of services referred to in 
subsection (a).
    ``(2) All proceeds collected by the Institute under a contract or 
agreement referred to in paragraph (1) shall be applied to the 
applicable appropriation.''.

SEC. 6. <<NOTE: 38 USC 4100 note.>> COMMITTEE TO RAISE EMPLOYER 
            AWARENESS OF SKILLS OF VETERANS AND BENEFITS OF HIRING 
            VETERANS.

    (a) Establishment of Committee.--There is established within the 
Department of Labor a committee to be known as the President's National 
Hire Veterans Committee (hereinafter in this section referred to as the 
``Committee'').
    (b) Duties.--The Committee shall establish and carry out a national 
program to do the following:
            (1) To furnish information to employers with respect to the 
        training and skills of veterans and disabled veterans, and the 
        advantages afforded employers by hiring veterans with such 
        training and skills.
            (2) To facilitate employment of veterans and disabled 
        veterans through participation in America's Career Kit national 
        labor exchange, and other means.

    (c) Membership.--(1) The Secretary of Labor shall appoint 15 
individuals to serve as members of the Committee, of whom one shall be 
appointed from among representatives nominated by each organization 
described in subparagraph (A) and of whom eight shall be appointed from 
among representatives nominated by organizations described in 
subparagraph (B).
            (A) Organizations described in this subparagraph are the 
        following:
                    (i) The Ad Council.
                    (ii) The National Committee for Employer Support of 
                the Guard and Reserve.
                    (iii) Veterans' service organizations that have a 
                national employment program.
                    (iv) State employment security agencies.
                    (v) One-stop career centers.
                    (vi) State departments of veterans affairs.
                    (vii) Military service organizations.

[[Page 116 STAT. 2047]]

            (B) Organizations described in this subparagraph are such 
        businesses, small businesses, industries, companies in the 
        private sector that furnish placement services, civic groups, 
        workforce investment boards, and labor unions as the Secretary 
        of Labor determines appropriate.

    (2) The following shall be ex officio, nonvoting members of the 
Committee:
            (A) The Secretary of Veterans Affairs.
            (B) The Secretary of Defense.
            (C) The Assistant Secretary of Labor for Veterans' 
        Employment and Training.
            (D) The Administrator of the Small Business Administration.
            (E) The Postmaster General.
            (F) The Director of the Office of Personnel Management.

    (3) A vacancy in the Committee shall be filled in the manner in 
which the original appointment was made.
    (d) Administrative Matters.--(1) The Committee shall meet not less 
frequently than once each calendar quarter.
    (2) The Secretary of Labor shall appoint the chairman of the 
Committee.
    (3)(A) Members of the Committee shall serve without compensation.
    (B) Members of the Committee shall be allowed reasonable and 
necessary travel expenses, including per diem in lieu of subsistence, at 
rates authorized for persons serving intermittently in the Government 
service in accordance with the provisions of subchapter I of chapter 57 
of title 5 while away from their homes or regular places of business in 
the performance of the responsibilities of the Committee.
    (4) The Secretary of Labor shall provide staff and administrative 
support to the Committee to assist it in carrying out its duties under 
this section. The Secretary shall assure positions on the staff of the 
Committee include positions that are filled by individuals that are now, 
or have ever been, employed as one of the following:
            (A) Staff of the Assistant Secretary of Labor for Veterans' 
        Employment and Training under section 4102A of title 38, United 
        States Code as in effect on the date of the enactment of this 
        Act.
            (B) Directors for Veterans' Employment and Training under 
        section 4103 of such title as in effect on such date.
            (C) Assistant Director for Veterans' Employment and Training 
        under such section as in effect on such date.
            (D) Disabled veterans' outreach program specialists under 
        section 4103A of such title as in effect on such date.
            (E) Local veterans' employment representatives under section 
        4104 of such title as in effect on such date.

    (5) Upon request of the Committee, the head of any Federal 
department or agency may detail, on a nonreimbursable basis, any of the 
personnel of that department or agency to the Committee to assist it in 
carrying out its duties.
    (6) The Committee may contract with and compensate government and 
private agencies or persons to furnish information to employers under 
subsection (b)(1) without regard to section 3709 of the Revised Statutes 
(41 U.S.C. 5).

[[Page 116 STAT. 2048]]

    (e) Report.--Not <<NOTE: Deadlines.>> later than December 31, 2003, 
2004, and 2005, the Secretary of Labor shall submit to Congress a report 
on the activities of the Committee under this section during the 
previous fiscal year, and shall include in such report data with respect 
to placement and retention of veterans in jobs attributable to the 
activities of the Committee.

    (f) Termination.--The Committee shall terminate 60 days after 
submitting the report that is due on December 31, 2005.
    (g) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary of Labor from the employment security 
administration account (established in section 901 of the Social 
Security Act (42 U.S.C. 1101)) in the Unemployment Trust Fund $3,000,000 
for each of fiscal years 2003 through 2005 to carry out this section.

SEC. 7. <<NOTE: 38 USC 4100 note.>> REPORT ON IMPLEMENTATION OF 
            EMPLOYMENT REFORMS.

    (a) Study.--The Comptroller General of the United States shall 
conduct a study on the implementation by the Secretary of Labor of the 
provisions of this Act during the program years that begin during fiscal 
years 2003 and 2004. The study shall include an assessment of the 
modifications under sections 2 through 5 of this Act of the provisions 
of title 38, United States Code, and an evaluation of the impact of 
those modifications, and of the actions of the President's National Hire 
Veterans Committee under section 6 of this Act, to the provision of 
employment, training, and placement services provided to veterans under 
that title.
    (b) Report.--Not <<NOTE: Deadline.>> later than 6 months after the 
conclusion of the program year that begins during fiscal year 2004, the 
Comptroller General shall submit to Congress a report on the study 
conducted under subsection (a). The report shall include such 
recommendations as the Comptroller General determines appropriate, 
including recommendations for legislation or administrative action.

    Approved November 7, 2002.

LEGISLATIVE HISTORY--H.R. 4015:
---------------------------------------------------------------------------

HOUSE REPORTS: No. 107-476 (Comm. on Veterans' Affairs).
CONGRESSIONAL RECORD, Vol. 148 (2002):
            May 20, 21, considered and passed House.
            Oct. 15, considered and passed Senate, amended.
            Oct. 16, House concurred in Senate amendments.

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