49–006 

109TH CONGRESS REPORT " ! HOUSE OF REPRESENTATIVES 2d Session 109–592 

VETERANS SMALL BUSINESS AND MEMORIAL AFFAIRS 

ACT OF 2006 

JULY 24, 2006.—Committed to the Committee of the Whole House on the State of 

the Union and ordered to be printed 

Mr. BUYER, from the Committee on Veterans’ Affairs, 

submitted the following 

R E P O R T 

[To accompany H.R. 3082] 

[Including cost estimate of the Congressional Budget Office] 

The Committee on Veterans’ Affairs, to whom was referred the 

bill (H.R. 3082) to amend title 38, United States Code, to require 

that 9 percent of procurement contracts entered into by the Department of Veterans Affairs be awarded to small business concerns 

owned by veterans, and for other purposes, having considered the 

same, report favorably thereon with amendments and recommend 

that the bill as amended do pass. 

The amendments are as follows: 

Strike all after the enacting clause and insert the following: 

SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

(a) SHORT TITLE.—This Act may be cited as the ‘‘Veterans Small Business and 

Memorial Affairs Act of 2006’’. 

(b) TABLE OF CONTENTS.—The table of contents for this Act is as follows: 

Sec. 1. Short title; table of contents. 

TITLE I—SMALL BUSINESS 

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

veterans in procurement contracts. 

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

Sec. 103. Effective date. 

TITLE II—MEMORIAL AFFAIRS 

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

trust lands. 

Sec. 202. Repeal of expiration and expanded application of Department of Veterans Affairs benefit for Government markers or headstones for marked graves of veterans buried in private cemeteries. 

Sec. 203. Provision of Government memorial headstones or markers and memorial inscriptions for deceased dependent children of veterans whose remains are unavailable for burial. 

TITLE III—VETERANS’ EMPLOYMENT AND TRAINING 

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


sroberts on PROD1PC70 with HEARING
2 

Sec. 302. Rules for part-time employment for disabled veterans’ outreach program specialists and local veterans’ employment representatives. 

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

Sec. 304. Training of new disabled veterans’ outreach program specialists and local veterans’ employment representatives by NVTI required. 

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

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

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

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

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

TITLE IV—EDUCATION 

Sec. 401. Exception for institutions offering Government-sponsored nonaccredited courses to requirement of refunding unused tuition. 

Sec. 402. Extension of work-study allowance. 

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

Sec. 404. Restoration of lost entitlement for individuals who had to discontinue a course of education because 

of being ordered to full-time National Guard duty. 

Sec. 405. Technical amendments. 

TITLE I—SMALL BUSINESS 

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

(a) IN GENERAL.—Subchapter II of chapter 81 of title 38, United States Code, is 

amended by adding at the end the following new section: 

‘‘§ 8127. Small business concerns owned and controlled by veterans; Department contracting goals and preferences 

‘‘(a) CONTRACTING GOALS.—(1) In order to increase contracting opportunities for 

small business concerns owned and controlled by veterans and small business concerns owned and controlled by veterans with service-connected disabilities, the Secretary shall—

‘‘(A) establish a goal for each fiscal year for participation in Department contracts (including subcontracts) by small business concerns owned and controlled 

by veterans who are not veterans with service-connected disabilities in accordance with paragraph (2); and 

‘‘(B) establish a goal for each fiscal year for participation in Department contracts (including subcontracts) by small business concerns owned and controlled 

by veterans with service-connected disabilities in accordance with paragraph 

(3). 

‘‘(2) The goal for a fiscal year for participation under paragraph (1)(A) shall be 

determined by the Secretary. 

‘‘(3) The goal for a fiscal year for participation under paragraph (1)(B) shall be 

not less than the Government-wide goal for that fiscal year for participation by 

small business concerns owned and controlled by veterans with service-connected 

disabilities under section 15(g)(1) of the Small Business Act (15 U.S.C. 644(g)(1)). 

‘‘(4) The annual performance review of the senior official of each Administration 

of the Department and each Assistant Secretary of the Department with procurement authority shall include an assessment of whether or not that official or Assistant Secretary met the contracting goals established pursuant to this subsection during the year for which the performance review is conducted with respect to contracts 

awarded during that year for which that official or Assistant Secretary had responsibility. If the official or Assistant Secretary is found not to have met such contracting goals, the official or Assistant Secretary shall not receive an award known 

as a performance award or an award known as a presidential rank award for that 

year. 

‘‘(5) In the case of a subcontract of a Department contract that is counted for purposes of meeting a goal established pursuant to this section, the Secretary shall conduct a review of the contract and subcontract to verify that the subcontract was actually awarded to a business concern that may be counted for purposes of meeting 

that goal. 

‘‘(6) The Secretary shall maintain a list based on the reviews conducted under 

paragraph (5) that contains the name of the contractor associated with each contract 

reviewed under that paragraph and whether each subcontract awarded by the contractor that is counted for purposes of meeting a goal established pursuant to this 

section was actually awarded to and performed by a business concern that may be 

counted for purposes of meeting that goal. The Secretary shall make such list publicly available. 

‘‘(b) USE OF NONCOMPETITIVE PROCEDURES FOR CERTAIN SMALL CONTRACTS.—For 

purposes of meeting the goals under subsection (a), and in accordance with this section, in entering into a contract with a small business concern owned and controlled 


sroberts on PROD1PC70 with HEARING
3 

by veterans for an amount less than the simplified acquisition threshold (as defined 

in section 4 of the Office of Federal Procurement Policy Act (41 U.S.C. 403)), a contracting officer of the Department may use procedures other than competitive procedures. 

‘‘(c) SOLE SOURCE CONTRACTS FOR CONTRACTS ABOVE SIMPLIFIED ACQUISITION

THRESHOLD.—For purposes of meeting the goals under subsection (a), and in accordance with this section, a contracting officer of the Department may award a contract 

to a small business concern owned and controlled by veterans using procedures 

other than competitive procedures if—

‘‘(1) such concern is determined to be a responsible source with respect to performance of such contract opportunity; 

‘‘(2) the anticipated award price of the contract (including options) will exceed 

the simplified acquisition threshold (as defined in section 4 of the Office of Federal Procurement Policy Act (41 U.S.C. 403)) but will not exceed $5,000,000; and 

‘‘(3) in the estimation of the contracting officer, the contract award can be 

made at a fair and reasonable price that offers best value to the United States. 

‘‘(d) USE OF RESTRICTED COMPETITION.—Except as provided in subsections (b) and 

(c), for purposes of meeting the goals under subsection (a), and in accordance with 

this section, a contracting officer of the Department shall award contracts on the 

basis of competition restricted to small business concerns owned and controlled by 

veterans if the contracting officer has a reasonable expectation that two or more 

small business concerns owned and controlled by veterans will submit offers and 

that the award can be made at a fair and reasonable price that offers best value 

to the United States. 

‘‘(e) ELIGIBILITY OF SMALL BUSINESS CONCERNS.—A small business concern may 

be awarded a contract under this section only if the small business concern and the 

veteran owner of the small business concern are listed in the database of veteranowned businesses maintained by the Secretary under subsection (f). 

‘‘(f) DATABASE OF VETERAN-OWNED BUSINESSES.—(1) Subject to paragraphs (2) 

through (6), the Secretary shall maintain a database of small business concerns 

owned and controlled by veterans and the veteran owners of such business concerns. 

‘‘(2) To be eligible for inclusion in the database, such a veteran shall submit to 

the Secretary such information as the Secretary may require with respect to the 

small business concern or the veteran. 

‘‘(3) Information maintained in the database shall be submitted on a voluntary 

basis by such veterans. 

‘‘(4) In maintaining the database, the Secretary shall carry out at least the following two verification functions: 

‘‘(A) Verification that each small business concern listed in the database is 

owned and controlled by veterans. 

‘‘(B) In the case of a veteran who indicates a service-connected disability, 

verification of the service-disabled status of such veteran. 

‘‘(5) The Secretary shall make the database available to all Federal departments 

and agencies and notify each such department and agency of the availability of the 

database. 

‘‘(6) If the Secretary determines that the public dissemination of certain types of 

information maintained in the database is inappropriate, the Secretary shall take 

such steps as are necessary to maintain such types of information in a secure and 

confidential manner. 

‘‘(g) ENFORCEMENT PENALTIES FOR MISREPRESENTATION.—Any small business concern that is determined by the Secretary to have misrepresented the status of that 

concern as a small business concern owned and controlled by veterans or as a small 

business concern owned and controlled by service-disabled veterans for purposes of 

this subsection shall be debarred from contracting with the Department for a period 

of five years. 

‘‘(h) TREATMENT OF BUSINESSES AFTER DEATH OF VETERAN-OWNER.—(1) If the 

death of a veteran causes a small business concern to be less than 51 percent owned 

by one or more veterans, the surviving spouse of such veteran who acquires ownership rights in such small business concern shall, for the period described in paragraph (2), be treated as if the surviving spouse were that veteran for the purpose 

of maintaining the status of the small business concern as a small business concern 

owned and controlled by veterans. 

‘‘(2) The period referred to in paragraph (1) is the period beginning on the date 

on which the veteran dies and ending on the earliest of the following dates: 

‘‘(A) The date on which the surviving spouse remarries. 

‘‘(B) The date on which the surviving spouse relinquishes an ownership interest in the small business concern. 

‘‘(C) The date that is ten years after the date of the veteran’s death. 


sroberts on PROD1PC70 with HEARING
4 

‘‘(3) The death of a veteran-owner of a small business concern or a surviving 

spouse of such a veteran-owner who acquires ownership rights in such concern shall 

not be cause for termination of a contract awarded under this section that is in effect at the time of death of such owner or surviving spouse. 

‘‘(i) CHANGE IN OWNERSHIP OR CONTROL.—(1) Except as provided in subsection (h), 

if a small business concern that is awarded a contract under this section undergoes 

a change in management or control during the period for which the contract is in 

effect such that it is no longer a small business concern owned and controlled by 

veterans, the Secretary shall end the contract on the date on which the performance 

of the term of the contract is complete. 

‘‘(2) Such a contract that contains an option or options to extend the contract may 

be extended for a total of not more than 1 year pursuant to any such option. 

‘‘(j) PRIORITY FOR CONTRACTING PREFERENCES.—Preferences for awarding contracts to small business concerns shall be applied in the following order of priority: 

‘‘(1) Contracts awarded pursuant to subsection (b), (c), or (d) to small business 

concerns owned and controlled by veterans with service-connected disabilities. 

‘‘(2) Contracts awarded pursuant to subsection (b), (c), or (d) to small business 

concerns owned and controlled by veterans that are not covered by subparagraph (A). 

‘‘(3) Contracts awarded pursuant to—

‘‘(A) section 8(a) of the Small Business Act (15 U.S.C. 637(a)); or 

‘‘(B) section 31 of such Act (15 U.S.C. 657a). 

‘‘(4) Contracts awarded pursuant to any other small business contracting preference. 

‘‘(k) QUARTERLY REPORTS.—Not later than 60 days after the last day of a fiscal 

quarter, the Secretary shall submit to Congress a report on small business contracting during that fiscal quarter, which shall include the following: 

‘‘(1) The percentage of the total amount of all contracts awarded by the Department during that fiscal quarter that were awarded to small business concerns owned and controlled by veterans. 

‘‘(2) The percentage of the total amount of all such contracts awarded to small 

business concerns owned and controlled by veterans with service-connected disabilities. 

‘‘(3) The percentage of the total amount of all contracts awarded by each Administration of the Department during that fiscal quarter that were awarded 

to small business concerns owned and controlled by veterans. 

‘‘(4) The percentage of the total amount of all contracts awarded by each such 

Administration during that fiscal quarter that were awarded to small business 

concerns owned and controlled by veterans. 

‘‘(l) DEFINITIONS.—In this section: 

‘‘(1) The term ‘small business concern’ has the meaning given that term under 

section 3 of the Small Business Act (15 U.S.C. 632). 

‘‘(2) The term ‘small business concern owned and controlled by veterans’

means a small business concern—

‘‘(A)(i) not less than 51 percent of which is owned by one or more veterans 

or, in the case of a publicly owned business, not less than 51 percent of the 

stock of which is owned by one or more veterans; and 

‘‘(ii) the management and daily business operations of which are controlled by one or more veterans; or 

‘‘(B) not less than 51 percent of which is owned by one or more veterans 

with service-connected disabilities that are permanent and total who are 

unable to manage the daily business operations of such concern or, in the 

case of a publicly owned business, not less than 51 percent of the stock of 

which is owned by one or more such veterans.’’. 

(b) TRANSITION RULE.—A small business concern that is listed in any small business database maintained by the Secretary of Veterans Affairs on the date of the 

enactment of this Act shall be presumed to be eligible for inclusion in the database 

under subsection (f) of section 8127 of title 38, United States Code, as added by subsection (a), during the period beginning on the date of the enactment of this Act 

and ending one year after the date of the enactment of this Act. Such a small business concern may be removed from the database during that period if it is found 

not to be a small business concern owned and controlled by veterans (as defined in 

subsection (l) of such section). 

(c) COMPTROLLER GENERAL REPORT AND STUDY.—(1) During the first three fiscal 

years for which this section is in effect, the Comptroller General shall conduct a 

study on the efforts made by the Secretary of Veterans Affairs to meet the contracting goals established pursuant to section 8127 of title 38, United States Code, 

as added by subsection (a). 


sroberts on PROD1PC70 with HEARING
5 

(2) On January 31 of each year during which the Comptroller General conducts 

the study under paragraph (1), the Comptroller General shall submit to Congress 

an interim report on such study, placing special emphasis on any structural or organizational issues within the Department of Veterans Affairs that might act as an 

impediment to reaching such contracting goals. 

(3) Not later than 90 days after the end of the three-year period during which 

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

General shall submit to Congress a report on the findings of such study. 

(d) CLERICAL AMENDMENT.—The table of sections at the beginning of such chapter 

is amended by inserting after the item relating to section 8126 the following new 

item: 

‘‘8127. Small business concerns owned and controlled by veterans; Department contracting goals and preferences.’’. 

SEC. 102. DEPARTMENT OF VETERANS AFFAIRS CONTRACTING PRIORITY FOR VETERANOWNED SMALL BUSINESSES. 

(a) PRIORITY FOR VETERAN-OWNED SMALL BUSINESSES.—Subchapter II of chapter 

81 of title 38, United States Code, as amended by section 101(a), is further amended 

by adding at the end the following new section: 

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

‘‘(a) IN GENERAL.—In procuring goods and services pursuant to a contracting preference under this title or any other provision of law, the Secretary shall give priority to a small business concern owned and controlled by veterans, if such business 

concern also meets the requirements of that contracting preference. 

‘‘(b) DEFINITION.—The term ‘small business concern owned and controlled by veterans’ means a small business concern that is on the list maintained by the Secretary under section 8127(f) of this title.’’. 

(b) CLERICAL AMENDMENT.—The table of sections at the beginning of such chapter, as amended by section 101, is further amended by inserting after the item relating to section 8127 the following new item: 

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

SEC. 103. EFFECTIVE DATE. 

This title and the amendments made by this title shall take effect on the date 

that is 180 days after the date of the enactment of this Act. 

TITLE II—MEMORIAL AFFAIRS 

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

Section 2408 of title 38, United States Code, is amended by adding at the end the 

following new subsection: 

‘‘(f)(1) The Secretary may make grants under this subsection to any tribal organization to assist the tribal organization in establishing, expanding, or improving veterans’ cemeteries on trust land owned by, or held in trust for, the tribal organization. 

‘‘(2) Grants under this subsection shall be made in the same manner, and under 

the same conditions, as grants to States are made under the preceding provisions 

of this section. 

‘‘(3) In this subsection: 

‘‘(A) The term ‘tribal organization’ has the meaning given that term in section 

3765(4) of this title. 

‘‘(B) The term ‘trust land’ has the meaning given that term in section 3765(1) 

of this title.’’. 

SEC. 202. REPEAL OF EXPIRATION AND EXPANDED APPLICATION OF DEPARTMENT OF VETERANS AFFAIRS BENEFIT FOR GOVERNMENT MARKERS OR HEADSTONES FOR 

MARKED GRAVES OF VETERANS BURIED IN PRIVATE CEMETERIES. 

(a) REPEAL OF EXPIRATION OF GOVERNMENT MARKER BENEFIT AND OBSOLETE PROVISION.—Section 2306(d) of title 38, United States Code, is amended by striking 

paragraphs (3) and (4). 

(b) APPLICATION OF GOVERNMENT MARKER BENEFIT TO VETERANS DYING ON OR

AFTER NOVEMBER 1, 1990.—Subsection (d) of section 502 of the Veterans Education 

and Benefits Expansion Act of 2001 (Public Law 107–103; 38 U.S.C. 2306 note) is 

amended by striking ‘‘September 11, 2001’’ and inserting ‘‘November 1, 1990’’. 

(c) PROVISION OF GOVERNMENT HEADSTONES.—


sroberts on PROD1PC70 with HEARING
6 

(1) PROVISION OF HEADSTONES.—Subsection (d) of section 2306 of title 38, 

United States Code, is amended—

(A) in paragraph (1)—

(i) in the first sentence, by inserting ‘‘headstone or’’ after ‘‘Government’’; and 

(ii) in the second sentence, by inserting ‘‘headstone or’’ before ‘‘marker’’ each place it appears; and 

(B) in paragraph (2), by inserting ‘‘headstone or’’ before ‘‘marker’’. 

(2) CONFORMING AMENDMENT.—Subsection (g)(3) of such section is amended 

by inserting ‘‘headstone or’’ before ‘‘marker’’. 

(d) PLACEMENT OF GOVERNMENT HEADSTONES OR MARKERS.—Subsection (d)(1) of 

such section, as amended by subsection (c), is further amended by adding at the end 

the following new sentence: ‘‘If placing the Government headstone or marker on the 

grave for which it is requested is impossible or impracticable, a headstone or marker 

may be furnished if the individual making the request for the headstone or marker 

certifies to the Secretary that the headstone or marker will be placed within the 

grounds of the cemetery in which the grave for which the headstone or marker is 

requested and as close as possible or practicable to that grave.’’. 

(e) DELIVERY OF GOVERNMENT HEADSTONES OR MARKERS.—Subsection (d)(2) of 

such section, as amended by subsection (c), is further amended by inserting before 

the period at the end the following: ‘‘or to a receiving agent of that cemetery’’. 

(f) SELECTION OF GOVERNMENT HEADSTONES AND MARKERS.—Subsection (d) of 

such section, as amended by subsections (a), (c), (d), and (e), is further amended by 

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

‘‘(3) The headstone or marker furnished under this subsection shall be the headstone or marker selected by the individual making the request for the headstone or 

marker from among all the headstones and markers made available by the Government and certified as acceptable for placement.’’. 

(g) RETROACTIVE EFFECTIVE DATE.—The amendments made by this section shall 

apply as if enacted in section 502 of the Veterans Education and Benefits Expansion 

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

SEC. 203. PROVISION OF GOVERNMENT MEMORIAL HEADSTONES OR MARKERS AND MEMORIAL INSCRIPTIONS FOR DECEASED DEPENDENT CHILDREN OF VETERANS 

WHOSE REMAINS ARE UNAVAILABLE FOR BURIAL. 

(a) PROVISION OF MEMORIAL HEADSTONES OR MARKERS.—Subsection (b) of section 

2306 of title 38, United States Code, is amended—

(1) by adding at the end of paragraph (2) the following new subparagraph: 

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

(2) by adding at the end of paragraph (4) the following new subparagraph: 

‘‘(C) For purposes of this section, the term ‘eligible dependent child’ means a 

child—

‘‘(i) who is under 21 years of age, or under 23 years of age if pursuing 

a course of instruction at an approved educational institution; or 

‘‘(ii) who is unmarried and became permanently physically or mentally 

disabled and incapable of self-support before reaching 21 years of age, or 

before reaching 23 years of age if pursuing a course of instruction at an approved educational institution.’’. 

(b) ADDITION OF MEMORIAL INSCRIPTION TO HEADSTONE OR MARKER OF VET- ERAN.—Subsection (f) of such section is amended by inserting ‘‘or eligible dependent 

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

(c) EFFECTIVE DATE.—The amendments made by subsections (a) and (b) shall 

apply with respect to individuals dying after the date of the enactment of this Act. 

TITLE III—VETERANS’ EMPLOYMENT AND 

TRAINING 

SEC. 301. PROFESSIONAL QUALIFICATIONS FOR DISABLED VETERANS’ OUTREACH PROGRAM 

SPECIALISTS AND LOCAL VETERANS’ EMPLOYMENT REPRESENTATIVES. 

(a) ESTABLISHMENT OF GUIDELINES BY SECRETARY.—Section 4107 of title 38, 

United States Code, is amended by adding at the end the following new subsection: 

‘‘(d) The Secretary shall maintain guidelines for use by States in establishing the 

professional qualifications required under subclause (IV) of section 4102A(c)(2)(A)(i) 

of this title for determining the eligibility for employment, and eligibility for the continued employment, of State employees who are designated as disabled veterans’

outreach program specialists and local veterans’ employment representatives under 

this chapter.’’. 


sroberts on PROD1PC70 with HEARING
7 

(b) SUBMISSION OF ANNUAL PROFESSIONAL QUALIFICATIONS AS A CONDITION OF

STATE RECEIPT OF FUNDS UNDER VETS PROGRAM.—Clause (i) of section 

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

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

(2) in subclause (III), by striking the period at the end and inserting a semicolon; and 

(3) by adding at the end the following new subclauses: 

‘‘(IV) the professional qualifications used by the State for determining the 

eligibility for employment, and eligibility for continued employment, of 

State employees who are designated as disabled veterans’ outreach program 

specialists and local veterans’ employment representatives under this chapter; and 

‘‘(V) the training required or provided by the State for State employees 

who are designated as disabled veterans’ outreach program specialists and 

local veterans’ employment representatives under this chapter.’’. 

(c) DEADLINE FOR ESTABLISHMENT OF QUALIFICATIONS.—The Secretary of Labor 

shall establish the guidelines for professional qualifications required by sections 

4107(d) of title 38, United States Code, as added by subsection (a), not later than 

the date that is 180 days after the date of the enactment of this Act. 

(d) TECHNICAL AMENDMENTS.—

(1) AMENDMENTS.—Section 4102A of such title, as amended by subsection (b), 

is further amended—

(A) in subsection (c)—

(i) by striking clause (ii) of paragraph (2)(B) and redesignating clause 

(iii) as clause (ii); and 

(ii) in paragraph (6)—

(I) by inserting ‘‘(29 U.S.C. 2801 et seq.)’’ after ‘‘the Workforce Investment Act of 1998’’; and 

(II) by inserting ‘‘(29 U.S.C. 49 et seq.)’’ after ‘‘the Wagner-Peyser 

Act’’; and 

(B) in subsection (f)—

(i) in paragraph (1), by striking ‘‘establish and’’; and 

(ii) by striking the heading and inserting the following: ‘‘PERFORMANCE STANDARDS AND OUTCOMES MEASURES.—’’. 

(2) EFFECTIVE DATE.—The amendment made by clause (i) of paragraph (1)(A) 

shall take effect on October 1, 2006. 

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

(a) DISABLED VETERANS’ OUTREACH PROGRAM SPECIALISTS.—Section 4103A of title 

38, United States Code, is amended by adding at the end the following new subsection: 

‘‘(c) PART-TIME EMPLOYEES.—A part-time disabled veterans’ outreach program 

specialist shall perform the functions of a disabled veterans’ outreach program specialist under this section on a half-time basis.’’. 

(b) LOCAL VETERANS’ EMPLOYMENT REPRESENTATIVES.—Section 4104 of such title 

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

‘‘(e) PART-TIME EMPLOYEES.—A part-time local veterans’ employment representative shall perform the functions of a local veterans’ employment representative 

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

(c) EFFECTIVE DATE.—Sections 4103A(c) and 4104(e) of title 38, United States 

Code, as added by subsections (a) and (b), shall apply with respect to pay periods 

beginning after the date that is 180 days after the date of the enactment of this 

Act. 

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

(a) REQUIREMENT AS A CONDITION OF VETS FUNDING.—Section 4102A(c) of title 

38, United States Code, as amended by section 301, is further amended by adding 

at the end the following new paragraph: 

‘‘(8) As a condition of a grant or contract under which funds are made available 

to a State in order to carry out section 4103A or 4104 of this title, the Secretary 

shall require the State to provide a licensing and certification program under which 

a veteran may receive credit toward a license or certification based on training or 

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

(b) EFFECTIVE DATE.—Section 4102A(c)(8) of title 38, United States Code, as 

added by subsection (a), shall apply to a grant or contract under which funds are 

made available to a State in order to carry out section 4103A or 4104 of such title 

beginning with the second program year beginning after the date of the enactment 

of this Act. 


sroberts on PROD1PC70 with HEARING
8 

SEC. 304. TRAINING OF NEW DISABLED VETERANS’ OUTREACH PROGRAM SPECIALISTS AND 

LOCAL VETERANS’ EMPLOYMENT REPRESENTATIVES BY NVTI REQUIRED. 

(a) TRAINING REQUIRED.—Section 4102A(c) of title 38, United States Code, is further amended by adding after paragraph (8), as added by section 303, the following 

new paragraph: 

‘‘(9)(A) As a condition of a grant or contract under which funds are made available 

to a State in order to carry out section 4103A or 4104 of this title, the Secretary 

shall require the State to require each employee hired by the State who is designated as disabled veterans’ outreach program specialist or a local veterans’ employment representative under this chapter to satisfactorily complete training provided by the National Veterans’ Employment and Training Services Institute during 

the three-year period that begins on the date on which the employee is so designated. 

‘‘(B) For any employee described in subparagraph (A) who does not complete such 

training during such period, the Secretary may reduce by an appropriate amount 

the amount made available to the State employing that employee.’’. 

(b) SUBMISSION OF EMPLOYEE TRAINING INFORMATION REQUIRED.—Section 

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

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

(2) by inserting after clause (ii) the following new clause (iii): 

‘‘(iii) For each employee of the State who is designated as disabled veterans’

outreach program specialist or a local veterans’ employment representative 

under this chapter—

‘‘(I) the date on which the employee is so designated; and 

‘‘(II) whether the employee has satisfactorily completed training provided 

by the National Veterans’ Employment and Training Services Institute.’’. 

(c) APPLICABILITY.—

(1) APPLICABILITY TO NEW EMPLOYEES.—Paragraph (9) of section 4102A(c) of 

such title, as added by subsection (a), and clause (iii) of section 4102A(c)(2)(A) 

of such title, as added by subsection (b), shall apply with respect to a State employee designated as a disabled veterans’ outreach program specialist or a local 

veterans’ employment representative under chapter 41 of such title who is so 

designated after the date of the enactment of this Act. 

(2) APPLICABILITY TO CERTAIN EMPLOYEES HIRED BEFORE DATE OF ENACTMENT.—The Secretary of Labor shall apply such paragraph to a State employee 

designated as a disabled veterans’ outreach program specialist or a local veterans’ employment representative under chapter 41 of such title who was so 

designated during the five-year period before the date of the enactment of this 

Act by substituting ‘‘during the period beginning on the date on which the employee is so designated and ending on the date that is five years after the date 

of the enactment of the Veterans Small Business and Memorial Affairs Act of 

2006’’ for ‘‘during the three-year period that begins on the date on which the 

employee is so designated’’. 

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

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

(1) by redesignating paragraphs (3) through (6) as paragraphs (10) through 

(13), respectively; and 

(2) by inserting after paragraph (2) the following new paragraphs: 

‘‘(3) the number of veterans, disabled veterans, and special disabled veterans 

who requested training from the public employment service system; 

‘‘(4) the total number of eligible veterans participating in each program for 

the provision of employment and training services designed to meet the needs 

of eligible veterans and eligible persons and the number of such veterans as a 

percentage of the total number of participants in each such program; 

‘‘(5) for each State, the percentage of persons seeking employment in the 

State who are veterans; 

‘‘(6) for each State, the number of veterans referred to a small business development center in that State and the number of veterans referred to the National Veterans Business Development Corporation established under section 33 

of the Small Business Act (15 U.S.C. 657c); 

‘‘(7) the total number of such veterans and disabled veterans who remain employed for at least 90 days in such jobs; 

‘‘(8) the number of such veterans and disabled veterans who remain employed 

for at least 180 days in such jobs; 

‘‘(9) the average starting wage or salary paid to such veterans and disabled 

veterans and, if applicable, the average wage or salary paid to such veterans 

and disabled veterans as of the 180th day of employment;’’. 


sroberts on PROD1PC70 with HEARING
9 

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

(a) DEMONSTRATION PROJECT.—Section 4102A of title 38, United States Code, as 

amended by sections 301, 303, and 304, is further amended by adding at the end 

the following new subsection: 

‘‘(h) DEMONSTRATION PROJECT ON CONTRACTING FOR PLACEMENT OF VETERANS IN

HIGH-UNEMPLOYMENT AREAS.—(1) From unobligated funds made available for a fiscal year to carry out sections 4103A and 4104 of this title, the Secretary of Labor, 

acting through the Assistant Secretary of Labor for Veterans’ Employment and 

Training, may enter into a contract with a nongovernmental entity to carry out job 

placement services for veterans during that fiscal year in a locality where the unemployment rate for veterans exceeds the national average unemployment rate. 

‘‘(2) In entering into a contract under paragraph (1), the Secretary of Labor may 

use procedures other than competitive procedures. 

‘‘(3) In entering into a contract under paragraph (1), the Secretary of Labor shall 

give priority to a small business concern owned and controlled by veterans that is 

listed in any small business database maintained by the Secretary of Veterans Affairs. 

‘‘(4) The total amount obligated under contracts entered into under paragraph (1) 

for any fiscal year may not exceed $3,000,000. 

‘‘(5) The authority to enter into a contract under this subsection shall terminate 

on the date that is five years after the date of the enactment of the Veterans Small 

Business and Memorial Affairs Act of 2006.’’. 

(b) GAO REPORT.—Not later than four years after the date of the enactment of 

this Act, the Comptroller General shall submit to the Committees on Veterans’ Affairs of the Senate and House of Representatives a report on the demonstration 

project under subsection (h) of section 4102A of title 38, United States Code, as 

added by subsection (a). 

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

(a) PROVISION OF INCENTIVES TO EMPLOYMENT SERVICE OFFICES.—Section 4112 of 

title 38, United States Code, is amended—

(1) in subsection (a)(1)(B), by inserting ‘‘and employment service offices’’ after 

‘‘recognize eligible employees’’; 

(2) in subsection (c)—

(A) in paragraph (1), by striking ‘‘and’’ at the end; 

(B) in paragraph (2)—

(i) by striking ‘‘is’’ and inserting ‘‘in the case of such an award made 

to an eligible employee, shall be’’; and 

(ii) by striking the period at the end and inserting the following: ‘‘; 

and’’; and 

(C) by adding at the end the following new paragraph: 

‘‘(3) in the case of such an award made to an employment service office, may 

be used by that employment service office for any purpose.’’. 

(b) CONFORMING AMENDMENT.—The heading for subsection (c) of such section is 

amended to read as follows: ‘‘ADMINISTRATION AND USE OF AWARDS.—’’. 

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

Not later than one year after the date of the enactment of this Act, the Secretary 

of Labor shall prescribe regulations to implement section 4215 of title 38, United 

States Code. 

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

(a) ESTABLISHMENT OF DEMONSTRATION PROJECT.—Chapter 41 of title 38, United 

States Code, is amended by adding at the end the following new section: 

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

‘‘(a) ESTABLISHMENT AND PURPOSE OF DEMONSTRATION PROJECT.—The Assistant 

Secretary for Veterans’ Employment and Training shall carry out a demonstration 

project on credentialing in accordance with this section for the purpose of facilitating the seamless transition of members of the Armed Forces from service on active duty to civilian employment. 

‘‘(b) CREDENTIALING AND LICENSURE OF VETERANS.—(1) The Assistant Secretary 

shall select not less than ten military occupational specialties for purposes of the 

demonstration project. Each such speciality selected by the Assistant Secretary shall 

require a skill or set of skills that is required for civilian employment in an industry 

with high growth or high worker demand. 

‘‘(2) The Assistant Secretary shall consult with appropriate Federal, State, and industry officials to identify requirements for credentials, certifications, and licenses 


sroberts on PROD1PC70 with HEARING
10 

that require a skill or set of skills required by a military occupational specialty identified under paragraph (1). 

‘‘(3) The Assistant Secretary shall analyze the requirements identified under paragraph (2) to determine which requirements may be satisfied by the skills, training, 

or experience acquired by members of the Armed Forces with the military occupational specialties selected under paragraph (1). 

‘‘(c) ELIMINATION OF BARRIERS TO CREDENTIALING AND LICENSURE.—The Assistant 

Secretary shall cooperate with appropriate Federal, State, and industry officials to 

reduce or eliminate any barriers to providing a credential, certification, or license 

to a veteran who acquired any skill, training, or experience while serving as a member of the Armed Forces with a military occupational specialty selected under subsection (b)(1) that satisfies the Federal and State requirements for the credential, 

certification, or license. 

‘‘(d) TASK FORCE.—The Assistant Secretary may establish a task force of individuals with appropriate expertise to provide assistance to the Assistant Secretary in 

carrying out this section. 

‘‘(e) CONSULTATION.—In carrying out this section, the Assistant Secretary shall 

consult with the Secretary of Defense, the Secretary of Veterans Affairs, appropriate 

Federal and State officials, private-sector employers, labor organizations, and industry trade associations. 

‘‘(f) CONTRACT AUTHORITY.—For purposes of carrying out any part of the demonstration project under this section, the Assistant Secretary may enter into a contract with a public or private entity with appropriate expertise. 

‘‘(g) PERIOD OF PROJECT.—The Assistant Secretary shall carry out the demonstration project under this section during the period beginning on the date that is 60 

days after the date of the enactment of this section and ending on September 30, 

2009. 

‘‘(h) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to be appropriated to the Assistant Secretary to carry out this section $1,000,000 for each of 

fiscal years 2007 through 2009.’’. 

(b) MEMBERSHIP OF ADVISORY COMMITTEE ON VETERANS EMPLOYMENT, TRAINING, 

AND EMPLOYER OUTREACH.—Section 4110(c)(1)(A) of such title is amended——

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

(2) by adding at the end the following new clause: 

‘‘(vii) The National Governors Association.’’. 

(c) CLERICAL AMENDMENT.—The table of sections at the beginning of chapter 41 

of such title is amended by adding at the end the following new item: 

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

TITLE IV—EDUCATION 

SEC. 401. EXCEPTION FOR INSTITUTIONS OFFERING GOVERNMENT-SPONSORED NONACCREDITED COURSES TO REQUIREMENT OF REFUNDING UNUSED TUITION. 

Section 3676(c)(13) of title 38, United States Code, is amended by striking ‘‘prior 

to completion’’ and all that follows and inserting the following: ‘‘before completion 

and——

‘‘(A) in the case of an institution other than (i) a Federal, State, or local 

Government institution or (ii) an institution described in subparagraph (B), 

such policy provides that the amount charged to the eligible person for tuition, fees, and other charges for a portion of the course shall not exceed the 

approximate pro rata portion of the total charges for tuition, fees, and other 

charges that the length of the completed portion of the course bears to its 

total length; and 

‘‘(B) in the case of an institution that is a nonaccredited public educational institution, the institution has and maintains a refund policy regarding the unused portion of tuition, fees, and other charges that is substantially the same as the refund policy followed by accredited public educational institutions located within the same State as such institution.’’. 

SEC. 402. EXTENSION OF WORK-STUDY ALLOWANCE. 

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

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

BENEFITS. 

Not later than 180 days after the date of the enactment of this Act, the Secretary 

of Veterans Affairs shall submit to Congress a report on the administration of education benefits under chapters 30, 31, 32, 34, 35, and 36 of title 38, United States 


sroberts on PROD1PC70 with HEARING
11 

Code, and chapters 1606 and 1607 of title 10, United States Code, that proposes 

methods to streamline the processes and procedures of administering such benefits. 

SEC. 404. RESTORATION OF LOST ENTITLEMENT FOR INDIVIDUALS WHO HAD TO DISCONTINUE A COURSE OF EDUCATION BECAUSE OF BEING ORDERED TO FULLTIME NATIONAL GUARD DUTY. 

(a) RESTORATION OF ENTITLEMENT.—Section 3511(a)(2)(B)(i) of title 38, United 

States Code, is amended by inserting after ‘‘title 10’’ the following: ‘‘or of being involuntarily ordered to full-time National Guard duty under section 502(f) of title 32’’. 

(b) EFFECTIVE DATE.—The amendment made by subsection (a) shall apply with 

respect to a payment of educational assistance allowance made after September 11, 

2001. 

SEC. 405. TECHNICAL AMENDMENTS. 

Section 3485 of title 38, United States Code, is amended——

(1) in subsection (a)(4)(E), by inserting ‘‘or 1607’’ after ‘‘chapter 1606’’; 

(2) in subsection (b), by striking ‘‘chapter 106’’ and inserting ‘‘chapter 1606 

or 1607’’; and 

(3) in subsection (e)(1)——

(A) by striking ‘‘services of the kind described in clauses (A) through (E) 

of subsection (a)(1) of this section’’ and inserting ‘‘a qualifying work-study 

activity described in subsection (a)(4)’’; and 

(B) by striking ‘‘chapter 106’’ and inserting ‘‘chapter 1606 or 1607’’. 

Amend the title so as to read: 

A bill to amend title 38, United States Code, to make improvements to small 

business, memorial affairs, education, and employment programs for veterans, and 

for other purposes. 

INTRODUCTION

The reported bill reflects the Committee’s consideration of H.R. 

601; H.R. 3082, as amended; H.R. 5038, as amended; and H.R. 

5220, as amended. 

On February 2, 2005, Honorable Tom Udall introduced H.R. 601, 

the Native American Veterans Cemetery Act of 2005, which would 

authorize the Secretary of Veterans Affairs to make grants to tribal 

organizations to assist them in establishing, expanding, or improving veterans’ cemeteries on trust lands. 

On June 28, 2005, the Chairman and Ranking Member of the 

Subcommittee on Economic Opportunity, Honorable John Boozman 

and Honorable Stephanie Herseth, respectively, Honorable Michael 

Bilirakis, Honorable Terry Everett, and Honorable Dan Burton introduced H.R. 3082, the Veteran-Owned Small Business Promotion 

Act of 2005, which would improve the competitive status of small 

businesses owned by veterans and service-disabled veterans when 

competing for VA small business set-aside contracts. 

On March 29, 2006, the Chairman and Ranking Member of the 

Subcommittee on Disability Assistance and Memorial Affairs, Honorable Jeff Miller and Honorable Shelley Berkley, respectively, introduced H.R. 5038, the Veterans’ Memorial Marker Act of 2006, 

which would extend, through December 31, 2007, the authority of 

the Secretary of Veterans Affairs to provide government markers 

for veterans interred in a marked grave at a private cemetery. The 

bill would also extend the program to veterans interred in a private 

cemetery and who died between November 1, 1990 and September 

10, 2001. The bill would also authorize the Secretary of Veterans 

Affairs to provide a memorial marker in a national cemetery for dependent children who would be eligible for burial but whose remains are unavailable. 


sroberts on PROD1PC70 with HEARING
12 

On April 6, 2006, the Subcommittee on Disability Assistance and 

Memorial Affairs held a hearing on seven bills, including H.R. 601 

and H.R. 5038. 

On April 27, 2006, the Subcommittee on Economic Opportunity 

held a hearing on five bills, including H.R. 3082, and draft legislation that would improve the competitive status of small businesses 

owned by veterans and service-disabled veterans when competing 

for VA contracts. The draft bill included provisions which would set 

procurement goals, establish incentive provisions, and continue veteran or service-disabled veteran status in cases where the veteran 

or service-disabled veteran-owner dies. 

On April 27, 2006, Honorable Ginny Brown-Waite introduced 

H.R. 5220, the Veterans Licensing and Credentialing Act of 2006. 

H.R. 5220 would establish a program to promote licensing and certification of veterans pursuing occupations related to their military 

training and experience. 

On May 10, 2006, the Subcommittee on Economic Opportunity 

met and ordered H.R. 3082, as amended, and H.R. 5220, as amended, reported favorably to the full Committee by unanimous voice 

vote. 

On June 8, 2006, the Subcommittee on Disability Assistance and 

Memorial Affairs met and ordered H.R. 601 reported favorably to 

the full Committee by unanimous voice vote. 

On July 12, 2006, the Subcommittee on Disability Assistance and 

Memorial Affairs met and ordered H.R. 5038, as amended, reported 

favorably to the full Committee by unanimous voice vote. 

On July 13, 2006, the full Committee met and ordered H.R. 3082, 

as amended, reported favorably to the House by unanimous voice 

vote. 

SUMMARY OF THE REPORTED BILL

H.R. 3082, as amended, would: 

TITLE I—SMALL BUSINESS 

1. Require the Secretary of Veterans Affairs (the Secretary) to establish annual contracting goals for the Department of Veterans 

Affairs (VA) to enter into with small businesses owned and controlled by veterans and service-disabled veterans. The goal for service-disabled, veteran-owned small businesses would not be less 

than three percent. 

2. Require VA to maintain a database of small businesses owned 

by veterans and service-disabled veterans and require listing in 

this database as a condition of participation in VA procurement 

program. 

3. Require VA to validate the veteran’s disability status and ownership interest in any business listed in the database. 

4. Provide veteran and service-disabled, veteran-owned small 

businesses priority in VA contracting as well as priority among 

other ‘‘set-aside’’ groups eligible for preferential treatment under 

the Small Business Act. 

5. Clarify veteran small business competition rules for contracts 

worth less than $5 million. 

6. Authorize continued status as a veteran or service-disabled 

veteran-owned small business by a surviving spouse for a period of 


sroberts on PROD1PC70 with HEARING
13 

10 years following the death of the veteran or service-disabled veteran owner. 

7. Require annual performance reviews of senior VA procurement 

officials to include assessment of efforts to meet veteran contracting goals and prohibit award of performance bonuses to those 

senior officials whose organizations within VA do not meet veteran 

or service-disabled veteran-owned business contracting goals. 

8. Require VA to provide quarterly reports on small business contracting. 

9. Require the Comptroller General to study, during the first 3 

fiscal years, the efforts made by the Secretary to meet contracting 

goals. 

TITLE II—MEMORIAL AFFAIRS 

1. Authorize the Secretary to make grants to tribal governments 

under the State Cemetery Grants Program to assist them in establishing, expanding, or improving veterans’ cemeteries on trust 

lands. 

2. Make permanent the Secretary’s authority to furnish a government headstone or marker for veterans interred in a marked grave 

at a private cemetery. The current authorization expires on December 31, 2006. 

3. Expand the Secretary’s authority to furnish a government 

headstone or marker for veterans who died between November 1, 

1990, and September 10, 2001, and who are interred in a marked 

grave at a private cemetery. 

4. Authorize the placement of a memorial marker in a national 

cemetery for dependent children who would be eligible for burial 

but whose remains are unavailable. 

TITLE III—VETERANS’ EMPLOYMENT AND TRAINING 

1. Require the U.S. Department of Labor’s Veterans’ Employment 

and Training Service (VETS) to establish non-mandatory professional qualification guidelines for Disabled Veterans Outreach Program Specialists (DVOPS) and Local Veterans Employment Representatives (LVERs). 

2. Require states to describe the qualifications and training for 

DVOPS and LVERs as part of the application for a state grant. 

3. Clarify that part-time employment of DVOPS and LVERs is 

half-time employment. 

4. Require states to develop a licensing and certification program 

within 2 years after date of enactment for veterans as a condition 

of receiving a grant from VETS. 

5. Require that all DVOPS/LVERs hired after date of enactment 

successfully complete training by the National Veterans’ Training 

Institute within three years of appointment. 

6. Modify VETS’ annual report to include additional and more 

specific data concerning veterans’ employment. 

7. Authorize a 5-year demonstration project to allow the Assistant Secretary of Labor for VETS to enter into contracts with nongovernmental entities to carry out placement services in high unemployment areas using unobligated funds, and require the Government Accountability Office to report on this demonstration 

project. 


sroberts on PROD1PC70 with HEARING
14 

8. Modify the incentive award program to recognize high-performing employment service offices in addition to high performing 

employees. 

9. Require DOL to prescribe regulations with regard to priority 

of service established under the Jobs for Veterans Act, Public Law 

107–288, no later than 1 year after date of enactment. 

10. Establish a demonstration project that would: 

a. authorize the Secretary of Labor to identify not fewer than 10 

military occupational specialties that would lead to civilian 

credentialing within an industry that has a critical shortage of employees or that is a high-growth industry; 

b. require the Secretary of Labor to work with states and industries to identify the civilian credentialing requirements within each 

state and industry to reduce the barriers for servicemembers seeking civilian employment; 

c. require an annual report to Congress describing the efforts and 

results of the previous year toward credentialing services; 

d. terminate authorization of the demonstration project on September 30, 2009; and 

e. authorize appropriations of $1,000,000 for each of the fiscal 

years 2007 through 2009. 

11. Include a representative from the National Governors Association on the Secretary’s Advisory Committee on Veterans Employment, Training, and Employer Outreach of the Department of 

Labor. 

TITLE IV—EDUCATION 

1. Clarify that the pro-rata refund policy for non-accredited educational institutions does not apply to Federal, state or local government courses. 

2. Extend authorization for work-study positions located at VA 

cemeteries, state veterans homes, and State Approving Agencies 

through June 30, 2007. 

3. Require VA to report on methods to improve and streamline 

the administrative processes and procedures of education programs 

in chapters 30 through 36 of title 38, United States Code. 

4. Restore lost entitlement for certain chapter 35 education beneficiaries who are survivors and dependents of veterans who are 

forced to discontinue a course of education due to being called to 

full-time National Guard duty. 

BACKGROUND AND DISCUSSION

TITLE I—SMALL BUSINESS 

Department of Veterans Affairs goals for participation by small 

businesses owned and controlled by veterans in procurement contracts.—Section 101 of the bill would improve the competitive status of small businesses owned by veterans and service-disabled veterans when competing for VA contracts. The Committee believes 

that qualified small businesses owned and operated by veterans 

and service-disabled veterans have earned the opportunity to compete for VA contracts, including small business set-aside contracts. 

Indeed, the Committee believes that small businesses owned and 

controlled by veterans and service-disabled veterans should rouVerDate Aug 31 2005 20:30 Jul 26, 2006 Jkt 049006 PO 00000 Frm 00014 Fmt 6659 Sfmt 6602 E:\HR\OC\HR592.XXX HR592

sroberts on PROD1PC70 with HEARING
15 

tinely be granted the primary opportunity to enter into VA procurement contracts, and would encourage other federal agencies to provide such preferences to veteran and service-disabled veteran 

owned small businesses. The Committee expects that VA will implement section 101 in an effective and expeditious manner, and 

accordingly, demonstrate improvement in meeting the contracting 

goals established by Public Law 106–50. 

Public Law 106–50 established a federal contracting goal of three 

percent for service-disabled veteran-owned small business concerns 

and improved access to capital and government procurement information for veterans and service-disabled veterans. To date, most 

federal agencies, including VA, have not met the three-percent contracting goal. While VA has demonstrated improvement in contracting with service-disabled veteran owned small businesses, the 

Committee believes the provisions of H.R. 3082 will provide the VA 

with the necessary procurement tools to meet, if not exceed, its contracting goals. Of course, strong leadership will also be needed 

from senior VA officials to effectively implement the provisions and 

continue to improve on VA’s contracting efforts. 

During a hearing held by the Committee on Veterans’ Affairs on 

February 5, 2003, witnesses provided testimony concerning the federal government’s failure to meet contracting goals. The reasons 

stated by the witnesses included the lack of emphasis on the goal 

by federal contracting officers and top managers; the discretionary, 

not mandatory, nature of the goals; the lack of real enforcement 

authority on the part of the Small Business Administration (SBA) 

and the lack of real contracting tools (such as set-asides or restricted contracts) to use in meeting the three-percent goal for service-disabled veteran-owned small businesses. 

As a result of the hearing, Congress ultimately enacted certain 

provisions of H.R. 2297, the Veterans Benefits Act of 2003, which 

became Public Law 108–183, this enhanced the ability of federal 

agencies to contract with veterans and service-disabled veterans. 

Among other provisions, the law established contract set-aside 

‘‘tools’’ for use by contracting officers to reach the three-percent 

goal. These tools included: 

1. furnishing federal agencies discretionary authority to create 

sole-source contracts for service-disabled, veteran-owned small 

businesses—up to $5 million for manufacturing contract awards 

and up to $3 million for non-manufacturing contract awards; and 

2. furnishing federal agencies discretionary authority to restrict 

certain contracts to service-disabled, veteran-owned small businesses if at least two such concerns are qualified to bid on the contract. 

Following the enactment of Public Law 108–183, the Subcommittee on Economic Opportunity held several hearings, both on 

its own, and jointly with the Committee on Small Business, to review service-disabled veteran-owned small business procurement 

policies within the federal government. The Committee, while noticing improvement by certain federal agencies, remains frustrated 

with respect to the efforts of the majority of federal agencies to 

enter into contracts with service-disabled veteran-owned small 

businesses. Moreover, the Committee has received testimony from 

numerous witnesses describing what they perceive as a culture of 

indifference or ignorance by many procurement officials with reVerDate Aug 31 2005 20:30 Jul 26, 2006 Jkt 049006 PO 00000 Frm 00015 Fmt 6659 Sfmt 6602 E:\HR\OC\HR592.XXX HR592

sroberts on PROD1PC70 with HEARING
16 

spect to the service-disabled veteran-owned small business provisions of Public Law 108–183. For example, total federal agency contracting with service-disabled small businesses amounted to only 

0.605 percent in 2005. 

The Committee expects VA to set the example among government agencies for procurement with veteran and service-disabled 

veteran-owned small businesses. The bill would provide new tools 

and procedures for VA contracting officers to enable them to do 

more business with veteran and service-disabled veteran entrepreneurs. Given this new set of acquisition tools, there should be 

no reason for VA not to meet the veteran and service-disabled veteran small business contracting goals. The Committee also expects 

the Department to make a significant effort to ensure that its contracting officers understand the new tools and utilize these tools effectively. Should the Department continue to fall short despite 

these additional tools, the Committee will consider further steps in 

order to achieve improvement in this area. The Committee believes 

that credit for subcontracts awarded by prime contractors to veteran and service-disabled veteran-owned businesses should qualify 

for meeting the goals established by the Secretary. However, contracts awarded to service-disabled veteran-owned businesses may 

not be counted towards meeting the goal set by the Secretary for 

non-service disabled veteran-owned businesses. 

The Committee expects senior VA management to take a strong 

leadership role in the implementation and administration of the 

provision within H.R. 3082, as amended. The Committee believes 

that failure to meet current contracting goals is a failure of senior 

VA management. Therefore, this section includes provisions prohibiting the award of bonuses to senior Administration officials such 

as the several Under Secretaries and Assistant Secretaries whose 

Administration or organization fails to meet the goals established 

by the Secretary. The Committee believes that there is sufficient 

opportunity within all Administrations and organizations with procurement authority to meet the goals and expects the Secretary to 

aggressively monitor the Department’s performance. 

The Committee believes that the long-term interests of veteran 

and service-disabled veteran-owned small businesses are best 

served by maintaining competition whenever possible. This section 

provides contracting officers with the authority to issue sole-source 

contracts when appropriate under the limits set by the legislation. 

While the Committee encourages VA to use the sole-source option 

to the advantage of the Department, the Committee also believes 

that excessive use of sole-source contracts as a convenience to the 

contracting officer is not conducive to expanding the number of veteran-owned small businesses receiving contracts, may stifle competition, and may result in questionable awards. The Committee 

believes that veteran and service-disabled small business owners 

would have greater opportunities to obtain VA contracts in an environment that promotes, rather than stifles, competition while 

maintaining the integrity of the process. 

The Center for Veterans Enterprise at VA currently maintains a 

database exclusively for veteran and service-disabled veteranowned small businesses. However, at the present time, the veteran 

status of those businesses’ owners and their ownership is not 

verified. The Committee strongly encourages the Department to 


sroberts on PROD1PC70 with HEARING
17 

maintain such a database and to ensure that businesses listed 

within the database are verified veteran-owned small businesses. 

The bill would require VA to validate veteran and ownership status; however, the Committee is concerned that the process not create another backlog and directs the VA to use the most efficient 

and cost-effective method to accomplish the validations including 

contracting with an appropriate entity. 

Department of Veterans Affairs contracting priority for veteranowned small businesses.—Section 102 of the bill would establish 

priority of veteran and service-disabled veteran small businesses 

relative to other set-aside groups. In addition to providing veteran 

and service-disabled veteran-owned small businesses priority over 

all other set-aside groups such as, section 8(a), HUBZONE, and 

Women-owned small businesses as defined by the Small Business 

Act, the Committee intends that any veteran or service-disabled 

veteran-owned small business that also qualifies under another 

category be given priority within that category in VA procurement. 

TITLE II—MEMORIAL AFFAIRS 

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

bill would authorize the Secretary of Veterans Affairs to make 

grants to tribal organizations to assist them in establishing, expanding, or improving veterans’ cemeteries on trust lands. 

The Department of Veterans Affairs’ State Cemetery Grants Program (SCGP) was established in 1978 to complement VA’s National 

Cemetery Administration. The program assists states with building 

or improving state veterans cemeteries. VA will pay for the construction costs; states are responsible for providing the land and 

ongoing operating and maintenance expenses of the cemeteries. 

There are currently 60 state cemeteries and two under construction; states are planning to open 18 new state veterans’ cemeteries 

between 2007 and 2010. Due to the success of the State Cemetery 

Grants Program, Congress made the program permanent in Public 

Law 108–183. However, tribal governments are not considered eligible for state cemetery grants. Section 201 would provide Native 

American veterans the opportunity to be buried in a veterans cemetery located on trust land. As a condition of being awarded a grant 

under the SCGP, the tribal organization would be required to submit the necessary grant application and meet related requirements 

similar to any other state jurisdiction. 

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.—Section 

202 of the bill would make permanent the authority of the Secretary of Veterans Affairs to furnish a marker or headstone for already-marked graves of veterans interred in private cemeteries. 

The current authorization expires on December 31, 2006. This section would also extend the program to include veterans who died 

between November 1, 1990 and September 10, 2001, and who are 

interred in a marked grave at a private cemetery. 

Between November 1, 1990 and September 10, 2001, the authority to provide a headstone or marker at a private cemetery was 

limited to the unmarked graves of veterans, or to commemorate the 

grave of an eligible veteran whose remains were unavailable. If a 


sroberts on PROD1PC70 with HEARING
18 

veteran’s family had purchased a private marker, VA did not have 

the authority to furnish one from the government. Public Law 107– 103 established a 5-year program requiring the Secretary to furnish a marker to those families who request a government marker 

for the marked grave of a veteran at a private cemetery who died 

on or after the date of the law’s enactment, December 27, 2001. 

With Public Law 107–330, Congress made the provision retroactive 

to September 11, 2001. Based upon VA’s review there was no significant increase in requests for additional grave markers with the 

passage of Public Law 107–330. VA supports extending the authority in order to contribute to its ability to provide veterans and their 

families with symbolic expressions of remembrance. 

Provision of government memorial headstones or markers for deceased dependent children of veterans whose remains are unavailable for burial.—Section 203 of the bill would authorize the Secretary of Veterans Affairs to permit the placement of a memorial 

headstone or marker in a national cemetery when a child’s remains 

are unavailable for burial. If feasible, VA would be authorized to 

add a memorial inscription to a veteran’s headstone rather than 

providing a separate marker for the minor child. 

Currently, VA may provide a memorial headstone or marker for 

a veteran, spouse, or surviving spouse when remains are unavailable. However, if a spouse and child die at the same time and in 

the same manner, and the remains for neither are available, a veteran cannot receive a memorial headstone honoring the child. This 

section would correct an inequity in current law. Since 2002, VA 

has received three such requests. 

TITLE III—VETERANS’ EMPLOYMENT AND TRAINING 

Professional qualifications for Service-Disabled Veterans’ Outreach Program Specialists and Local Veterans’ Employment Representatives.—Section 301 of the bill would set non-mandatory 

standards for hiring of Disabled Veterans Outreach Program Specialists (DVOPS) and Local Veterans Employment Representatives 

(LVERs), as well as training requirement and related veterans employment issues. The Department of Labor’s Veterans’ Employment and Training Service (VETS) annually provides over $160 million 

in staffing grants to states to furnish employment services to veterans, usually through state workforce centers. These federal 

grants provided to states fund DVOPS and LVERs. 

DVOPS and LVERs are usually employees of the state employment services and have qualifications and pay scales that can vary 

significantly. While data indicates no obvious correlation between 

salaries and performance in placing veterans in jobs, the Committee believes that as part of the overall goal of improving DVOPS 

and LVER performance nationally, it is time for VETS to provide 

states with recommended qualifications for employees who hold 

those positions. 

Public Law 107–288 created greater flexibility for states in administering employment services to veterans. The Committee, however, is concerned with some states’ performance and slow progress 

with respect to fully implementing the provisions of Public Law 

107–288. Moreover, through site visits, Government Accountability 

Office reports, and oversight hearings the Committee has received 

compelling testimony describing numerous challenges to the vetVerDate Aug 31 2005 20:30 Jul 26, 2006 Jkt 049006 PO 00000 Frm 00018 Fmt 6659 Sfmt 6602 E:\HR\OC\HR592.XXX HR592

sroberts on PROD1PC70 with HEARING
19 

erans’ state grant program, including lack of data gathering and reporting systems, inability to provide incentive awards in certain 

states and high staff turnover with declining resources to provide 

training. 

The Committee intends that this section will improve the state 

grant program for DVOPS and LVERs by setting suggested hiring 

and retention guidelines as requirements for grants, implementing 

a demonstration contract program in areas of high veteran unemployment, and revising the current incentive award program. 

This section would require the Department of Labor, through 

VETS, to set guidelines for states for standards of initial hires as 

well as training requirements for those currently on the job. While 

the Committee considered requiring VETS to set mandatory qualifications, the Committee determined that doing so might be 

counter-productive at this time. However, the Committee expects 

VETS to strongly encourage and if needed assist the states to implement such workforce development modifications and upgrade 

their respective staff training and qualification standards. 

Rules for part-time employment for Disabled Veterans’ Outreach 

Program Specialists and Local Veterans’ Employment Representatives.—Section 302 of the bill would clarify the hiring of part-time 

DVOPS and LVERs. Certain provisions of Public Law 107–288 allowed states to create part-time positions for DVOPS and LVERs. 

The intent of this provision was to create half-time employees to 

provide greater geographic distribution throughout states. However, some states have created positions that are less than halftime. The Committee believes that half-time employees are needed 

to effectively fulfill the objectives of the programs. 

State licensing and certification programs for veterans.—Section 

303 of the bill would require states to establish licensing and certification programs for veterans as a condition of receiving a grant 

under the VETS program. Many veterans receive extensive training and experience during their military service. The Committee 

believes that veterans who have received such training should be 

able to receive credit for such training when applying for a state 

license or certification after leaving military service. 

Training of new Disabled Veterans’ Outreach Program Specialists and Local Veterans’ Employment Representatives by National 

Veterans’ Training Institute required.—Section 304 of the bill 

would require states to ensure DVOPS and LVERs are properly 

trained to provide job placement services. The Committee believes 

that initial and refresher training is critical to providing quality job 

training services, especially for those performing as DVOPS. While 

it is less challenging to place job seekers, including veterans, in low 

skill/low wage jobs, understanding veterans’ unique experiences 

and qualifications obtained during military service and matching 

veterans with training and job opportunities that provide upward 

mobility is more demanding. Such service requires a more sophisticated approach that can be facilitated by appropriate training at 

the National Veterans’ Training Institute (NVTI). The Committee 

realizes that the provisions of this section will likely increase the 

training services provided by NVTI and the Committee expects the 

Department of Labor to request additional funding for NVTI in the 

Administration’s budget. Section 304 would also allow VETS to 

withhold funding to states for any employee who has not completed 


sroberts on PROD1PC70 with HEARING
20 

training at NVTI. The Committee expects that any funding withheld would be withheld in future grants, not recaptured from current year funding. 

Matters for inclusion in annual report on VETS program.—Section 305 of the bill would add several detailed reporting requirements to measure the effectiveness of the DVOP and LVER program. This section requires VETS to provide additional data in its 

annual reports. Such data shall include information concerning employment status in 90 and 180 day increments, the percentage of 

veterans who are seeking employment in each state, and the number of veterans referred to small business assistance. This will enable VETS and Congress to measure the success of the DVOPS and 

LVER programs in meeting employment goals. 

Demonstration project on contracting for placement of certain 

service-disabled veterans.—Section 306 of the bill would authorize 

VETS to contract with private entities for placement services using 

unobligated funds. One persistent complaint regarding the inconsistent performance of the DVOP and LVER programs is that the 

lack of competition does not encourage high quality performance. 

Authorizing VETS to contract with nongovernmental entities will 

create not only additional placement resources, but also incentives 

for state employment services to improve their operations. 

Performance incentive awards for employment service offices.— Section 307 of the bill would expand the types of performance incentive awards available to state employment services. The Jobs 

for Veterans Act passed in 2002 (Public Law 107–288 enacted in 

2002) authorized states to use up to one percent of the state grant 

to reward high-performing employees. The Committee has become 

aware that some state constitutions and collective bargaining 

agreements prohibit such awards. The Committee has long held 

that providing incentives awards are appropriate techniques to promote improved performance. Therefore, this section would authorize states to use the incentive money to reward not just individuals, but also offices whose performance exceeds the norm. In the 

case of awards to offices, the funds are not restricted in the type 

of use, but the Committee believes such use should reflect the performance of the entire office, not benefit one specific individual. 

Department of Labor implementation of priority of service for 

veterans requirement.—Section 308 of the bill would require the 

Department of Labor to establish regulations governing the Jobs 

for Veterans Act (Public Law 107–288). Since its enactment in 

2002, the Secretary of Labor has not promulgated regulations concerning priority of service for veterans within Department of Labor 

training programs. The Committee expects the Department of 

Labor to promulgate regulations no later than 1 year after the date 

of enactment to ensure veterans priority in all applicable Department of Labor programs. 

Demonstration project on credentialing and licensure of veterans.—Section 309 of the bill would require the VETS to begin a 

program to promote credentialing and licensing of veterans in occupations related to their military training and experience. VETS 

would be required to identify a minimum of 10 military occupational specialties (MOS) to begin the program. Over 400 MOS have 

civilian counterparts; however, often former servicemembers are 

not able to obtain licenses or certification for the civilian equivaVerDate Aug 31 2005 20:30 Jul 26, 2006 Jkt 049006 PO 00000 Frm 00020 Fmt 6659 Sfmt 6602 E:\HR\OC\HR592.XXX HR592

sroberts on PROD1PC70 with HEARING
21 

lents based on their military experience and training. This lack of 

recognition and credit for military service is not only frustrating 

and expensive for veterans seeking civilian employment, but it 

costs the nation in terms of duplicative training and lost time onthe-job. For example, the Army spends several thousand dollars to 

train the equivalent of a long-haul truck driver. The Navy spends 

over $50,000 to train a medical corpsman roughly equivalent to an 

emergency medical technician. To require these individuals to repeat training already completed and ignore several years of experience is simply unwise. While states may require training and education beyond what is gained in military service to qualify for state 

licenses, servicemembers should be given appropriate credit for 

education, training, and experience gained in military service. 

The Committee has found that many servicemembers who separate from the military and enter civilian life would prefer to seek 

employment in the civilian workforce that reflects generally the 

skills and experience they gained during their military service 

rather than seek a degree at a traditional post-secondary institution. To assist with the transition process toward civilian employment, this section would authorize VETS to conduct a pilot project 

to identify MOS-equivalent industries facing a critical shortage and 

high-growth industries. Once VETS identifies the MOS’s, it must 

work with states and private industries to credit former 

servicemembers in certain MOS’s for education, training, and experience to receive licensing and credentialing in those industries. At 

the conclusion of this study the Committee expects that states 

would have programs established that assist veterans in their efforts to receive proper civilian licenses and certifications based on 

their military service. 

TITLE IV—EDUCATION 

Exception for institutions offering Government-sponsored nonaccredited courses to requirement of refunding unused tuition.— Section 401 of the bill would clarify the rules regarding refunds by 

educational institutions. The Committee is concerned about the 

complex and time-consuming claims process that has developed 

within the VA’s Education Service due in part to legislation, certain administrative decisions, and outdated regulations. One issue 

in particular brought to the Committee’s attention by the National 

Association of State Approving Agencies, is that valid education 

programs offered by government or quasi-government entities are 

denied approval based on the requirement that the institution have 

a pro-rata refund policy. A change in this policy would allow greater flexibility in approving programs that a veteran may obtain the 

skills and knowledge to enter into a profession or occupation. 

Extension of work-study allowance.—Section 402 of the bill 

would extend several existing work-study options that expire on 

December 27, 2006. VA hires veteran-students under the workstudy program in certain VA programs. Under Public Law 107– 103, the Veterans Education and Benefits Expansion Act of 2001, 

opportunities for veteran-students to use their work-study funding 

were expanded to include positions at State Approving Agencies, 

state and national cemeteries, and state veterans homes. These options expire on December 27, 2006. Although the program has been 

successful, the Committee does not have funding available to conVerDate Aug 31 2005 20:30 Jul 26, 2006 Jkt 049006 PO 00000 Frm 00021 Fmt 6659 Sfmt 6602 E:\HR\OC\HR592.XXX HR592

sroberts on PROD1PC70 with HEARING
22 

tinue this program on a permanent basis. So as not to cut off a 

work-study program for these veterans during a school year, section 402 would extend work-study options through June 30, 2007. 

Report on improvement in administration of educational assistance benefits.—Section 403 of the bill would require VA to submit 

a report to Congress on ways to streamline the administration of 

VA education benefits. The Committee has concerns with regard to 

how VA administers its education programs. In testimony at a field 

hearing held in Rogers, Arkansas, Dr. Steve Kime, Vice President 

(retired) of the American Association of State Colleges and Universities, noted that VA regulations often treat veterans and education 

institutions as potential criminals. He also noted that these regulations reflected VA’s experience following World War II when large 

numbers of veterans were thrust into an education system that had 

little oversight. Dr. Kime testified that today’s education system is 

much more regulated and policed in terms of accreditation and accountability and it is time to revise VA regulations and processes 

to reflect that change. Therefore, section 403 would require the VA 

to review all administrative and policy procedures within the education programs to streamline the process and offer veterans more 

opportunities. 

Restoration of lost entitlement for individuals who had to discontinue a course of education because of being ordered to full-time 

National Guard duty.—Section 404 of the bill would authorize VA 

to restore Chapter 35 education entitlements lost by surviving 

spouses and dependents due to being called to active duty. Reservists and National Guardsmen who are attending courses of study 

and using Chapter 30 benefits are able to have their entitlement 

restored if the course was involuntarily interrupted due to activation. Currently, reservists are not eligible to have their entitlement 

restored if they are receiving education benefits under Chapter 35 

of title 38, United States Code, as the survivors or dependents of 

veterans. This section would extend restoration of entitlement to 

these National Guard and Reserve members as well. 

SECTION-BY-SECTION ANALYSIS

Section 1 of the bill would provide that this Act may be cited as 

the ‘‘Veterans Small Business and Employment Promotion Act of 

2006.’’ Section 101(a) of the bill would add a new subchapter 8127, ‘‘Small business concerns owned and controlled by veterans; Department contracting goals and preferences,’’ to title 38, United 

States Code. The following sections would be added to chapter 81 

of title 38, United States Code: 

New subsection 8127(a) would require the Secretary to establish 

contracting and subcontracting goals for each fiscal year for small 

business contracts with small businesses owned and controlled by 

veterans and service-disabled veterans. This subsection would also 

require the performance appraisal of senior officials and Assistant 

Secretaries with procurement authority to include whether the annual contracting goals of their Administrations or organizations 

were met. Finally, this subsection would require VA to conduct reviews of contracts and subcontracts to verify that contracts and 

subcontracts were actually awarded to veterans’ businesses as outlined in their contract or subcontract. This information would be 


sroberts on PROD1PC70 with HEARING
23 

maintained in a list that the Secretary would make publicly available. 

New subsection 8127(b) would allow VA to award non-competitive contracts to small businesses owned and controlled by veterans 

when the amount of the contract is below the simplified acquisition 

threshold as defined in section 4 of the Office of Federal Procurement Policy Act (41 U.S.C. § 403). 

New subsection 8127(c) would allow contracting officers to award 

sole source contracts to small businesses owned and controlled by 

veterans to meet the annual goal set by the Secretary for contracts 

above the simplified acquisition threshold but below $5,000,000. 

New subsection 8127(d) would allow contracting officers to restrict competition to small businesses owned and controlled by veterans if the contracting officer has an expectation that two or more 

businesses owned by veterans will submit offers for the contract. 

New subsection 8127(e) would require small businesses owned 

and controlled by veterans to be listed in the database maintained 

by the Secretary in order to be awarded a contract under this new 

section. 

New subsection 8127(f) would require the Secretary to maintain 

a database of small businesses owned and controlled by veterans. 

The Secretary would verify that each small business is owned and 

controlled by a veteran and in the case of a service-disabled veteran; the Secretary would verify the veteran’s service-disabled status. The database would be made available to all Federal departments and agencies and certain types of information would also be 

available to the public. 

New subsection 8127(g) would bar any small business that misrepresented itself to the Department as a small business owned 

and controlled by a veteran from contracting with the Department 

for a period of 5 years. 

New subsection 8127(h) would continue to recognize a small business owned and controlled by a veteran as such after the death of 

the veteran if the surviving spouse of the veteran acquires ownership. This small business would be recognized as a veteran-owned 

or service-disabled veteran-owned small business until the earliest 

of the following: (a) the date on which the surviving spouse remarries; (b) the date the surviving spouse relinquishes ownership; or 

(c) 10 years after the date of the veteran’s death. 

New subsection 8127(i) would require the Secretary to end any 

contract on the date on which the performance of the term of the 

contract is complete if the ownership or control of the veteranowned small business changes during the period of the contract. If 

the contract contains an option or options to extend the contract, 

such contract may not be extended for more than 1 year. 

New subsection 8127(j) would give preference to small businesses 

owned and controlled by veterans relative to other set aside groups 

and within other set aside groups when another contracting preference category is being used. 

New subsection 8127(k) would require the Secretary to provide 

quarterly reports to the Committees on Veterans Affairs that would 

include percentage of contracts awarded by the whole Department 

and each Administration of the Department to small businesses 

owned and controlled by veterans and service-disabled veterans. 


sroberts on PROD1PC70 with HEARING
24 

New subsection 8127(l) would provide definitions for ‘‘small business concern’’ and ‘‘small business owned and controlled by veterans.’’

Section 101(b) of the bill would provide a transition rule that 

would allow one year after date of enactment for the small businesses currently listed on the current database to be removed if 

found not to be a small business owned and controlled by a veteran. 

Section 101(c) of the bill would require the Comptroller General 

to conduct a study on the efforts of the Secretary to meet the goals 

established in section 8127 for the first 3 fiscal years after date of 

enactment and report to Congress on January 31 of each of such 

year. Not later than 90 days after the end of the study the Comptroller General shall submit a report to Congress on the findings 

of the study. 

Section 101(d) of the bill would amend the chapter heading to include the new section 8127. 

Section 102 of the bill would create a new section 8128, ‘‘Contracting priority for small business concerns owned and controlled 

by veterans,’’ in title 38, United States Code. The new Subchapter 

would give priority to small businesses owned and controlled by 

veterans. 

Section 103 of the bill would make sections 101 and 102 effective 

180 days after the date of enactment of this act. 

Section 201 of the bill would amend section 2408 of title 38, 

United States Code, by adding a new subsection (f), which would 

authorize the Secretary to make grants to any tribal organization 

to assist the tribal organization in establishing, expanding, or improving under the same manner and under the same conditions as 

grants to states are made. 

Section 202(a) of the bill would amend section 2306(d) of title 38, 

United States Code, by striking paragraphs (3) and (4). 

Section 202(b) of the bill would amend subsection (d) of section 

502 of the Veterans Education and Benefits Expansion Act of 2001 

(Public Law 107–103; 38 U.S.C. 2306 note) by striking ‘‘September 

11, 2001’’ and inserting ‘‘November 1, 1990’’. 

Section 202(c) of the bill would amend section 2306(d) of title 38, 

United States Code, by permitting a headstone or a marker on the 

veteran’s grave. 

Section 202(d) of the bill would require that a headstone or 

marker provided under subsection 2306(c) of title 38, United States 

Code, be placed as close as possible or practicable to the grave. 

Section 202(e) of the bill would permit delivery of headstones or 

markers to a receiving agent for the cemetery. 

Section 202(f) of the bill would require that the headstone or 

marker furnished would be selected by the individual making the 

request. 

Section 202(g) of the bill would make the effective date of these 

provisions as if enacted in section 502 of the Veterans Education 

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

U.S.C. 2306 note). 

Section 203(a)(1) of the bill would amend subsection (b) of section 

2306 of title 38, United States Code, by adding a new subparagraph (C) to paragraph (2), ‘‘eligible dependent child of a veteran.’’


sroberts on PROD1PC70 with HEARING
25 

Section 203(a)(2) of the bill would add at the end of paragraph 

(4) a new subparagraph (C) defining ‘eligible dependent child’ as a 

child who (1) is under 21 years of age, or under 23 years of age 

if pursuing a course of instruction at an approved educational institution; or (2) became permanently physically or mentally disabled 

and incapable of self-support before reaching 21 years of age, or before reaching 23 years of age if pursuing a full-time course of instruction at an approved educational institution’’. 

Section 203(b) of the bill would amend subsection (f) of such section by adding ‘‘or eligible dependent child’’ after ‘‘surviving spouse’’

both places it appears. 

Section 203(c) of the bill would provide that subsections (a) and 

(b) apply with respect to individuals dying after the date of enactment of this Act. 

Section 301(a) of the bill would require the Secretary of Labor to 

establish suggested guidelines for the professional qualifications of 

Disabled Veterans’ Outreach Program Specialists (DVOPS) and 

Local Veterans’ Employment Representatives (LVERs) in the 

States. 

Section 301(b) of the bill would require states to submit the professional qualifications and training for DVOPS and LVERs as a 

condition for receipt of a grant or contract from the Veterans’ Employment and Training Service (VETS). 

Section 301(c) of the bill would require the Secretary of Labor to 

establish the guidelines for qualifications for DVOPS and LVERs 

180 days after the enactment of this act. 

Section 302 of the bill would clarify that part-time employment 

of DVOPS and LVERs is half-time. 

Section 303 of the bill would require states to provide licensing 

and certification programs for veterans as a condition of a grant or 

contract from VETS not later than the second program year after 

the enactment of this Act. 

Section 304(a) of the bill, as a condition of a grant or contract 

from VETS, would require all new DVOPS or LVERs hired after 

enactment to complete training provided by the National Veterans 

Training Institute (NVTI). New hires would have three years to 

complete training. If the Secretary of Labor did not provide an exception to a state, the Secretary may reduce the amount of the 

grant or contract for the state for non-compliance. 

Section 304(b) of the bill would require the states to submit information of employee training at NVTI to VETS. 

Section 304(c) of the bill would require all DVOPS and LVERs 

who are hired or designated after enactment of this Act to receive 

NVTI training. DVOPS and LVERs with 5 years of service would 

be exempt from the requirement and those with less than 5 years 

would be required to complete training within 5 years of enactment. 

Section 305 of the bill would make additions to the annual VETS 

program report which would include: the number of veterans and 

service-disabled veterans who have requested training; the number 

and percentage of veterans participating in services; the percentage 

of people and veterans seeking employment in each state; the number of veterans referred to small business services; the number of 

veterans and service-disabled veterans who remained employed 


sroberts on PROD1PC70 with HEARING
26 

after 90 and 180 days; and the average starting wages of veterans 

and service-disabled veterans and the wage after 180 days. 

Section 306(a) of the bill would authorize a 3-year demonstration 

project to allow the Assistant Secretary of VETS to enter into contracts with non-governmental entities to carry out placement services in high-unemployment areas. The Secretary would be able to 

use procedures other than competitive to enter into such contracts. 

The bill would give priority to veteran-owned small businesses in 

the small business data base maintained by the Secretary of Veterans Affairs. The Secretary would be authorized to use up to 

$3,000,000 annually of unobligated funds appropriated for the 

State grant program. 

Section 306(b) of the bill would direct the Comptroller General to 

report on the demonstration project not later than four years after 

the date of enactment of this Act. 

Section 307 of the bill would allow the Assistant Secretary of 

VETS to give incentive awards to employment service offices instead of only to eligible employees. 

Section 308 of the bill would require the Secretary of Labor to 

promulgate regulations on the implementation of priority of service 

for veterans in Department of Labor programs. 

Section 309(a) of the bill would establish a new section 4114, 

‘‘Demonstration project on credentialing and licensure of veterans,’’

in title 38, United States Code. The following section would be 

added to chapter 41 of title 38, United States Code: 

New subsection 4114(a) would require the Assistant Secretary for 

VETS to establish and carry out a demonstration project on 

credentialing to facilitate the seamless transition of 

servicemembers into civilian employment. 

New subsection 4114(b) would require the Assistant Secretary for 

VETS to select not fewer than ten military occupations that require 

a skill or set of skills that would lead to civilian employment with 

a high growth or high worker demand industry for the demonstration project. The Assistant Secretary would be required to consult 

with Federal, State and industry officials to identify requirements 

for credentials, certifications and licenses that would be required in 

both the civilian and military occupation when identifying occupations for the demonstration project. 

New subsection 4114(c) would require the Assistant Secretary for 

VETS to cooperate with Federal, State and industry officials to reduce or eliminate barriers veterans may face when seeking to obtain a credential, certification or license within an occupation that 

the veteran gained experience and training in while serving in the 

Armed Forces. 

New subsection 4114(d) would allow the Assistant Secretary for 

VETS to establish a task force to assist with the demonstration 

project. 

New subsection 4114(e) would require the Assistant Secretary for 

VETS to consult with appropriate Federal departments and agencies, State officials, private-sector employers, labor organizations 

and industry trade associations. 

New subsection 4114(f) would allow the Assistant Secretary for 

VETS to enter into a contract to carry out the demonstration 

project. 


sroberts on PROD1PC70 with HEARING
27 

New subsection 4114(g) would require the demonstration project 

to begin 60 days after date of enactment and end on September 30, 

2009. 

New subsection 4114(h) would authorize $1,000,000 for each of 

the fiscal years 2007 through 2009 of appropriated funds for the 

demonstration project. 

Section 309(b) of the bill would add a representative of the National Governors Association to the Advisory Committee on Veterans Employment, Training, and Employer Outreach of the Department of Labor. 

Section 309(c) of the bill would add ‘‘4114. Demonstration project 

of credentialing and licensure of veterans.’’ to the table of contents 

at the beginning of chapter 41 of title 38, United States Code. 

Section 401 of the bill would exempt Federal, state or local government institutions or institutions primarily supported by funding 

from a Federal, state of local government entity from the rule that 

requires a non-accredited education program to have a pro-rata refund policy. 

Section 402 of the bill would extend workstudy benefits for jobs 

at VA cemeteries, state veterans homes, and State Approving 

Agencies until June 30, 2007. 

Section 403 of the bill would require the Secretary to report to 

Congress 180 days after enactment of this Act on ways to streamline the administrative processes and procedures of the veterans’ education benefits. 

Section 404 of the bill would restore lost entitlement to individuals receiving education benefits under chapter 35 of title 38, 

United States Code who were called to active duty under title 32, 

United States Code, after September 11, 2001. 

PERFORMANCE GOALS AND OBJECTIVES

The reported bill would authorize benefits and program enhancements under laws administered by the Secretary of Veterans Affairs and the Secretary of Labor. The Department of Veterans Affairs’ performance goals and objectives are established in annual 

performance plans and are subject to the Committee’s regular oversight and evaluation by the U.S. Government Accountability Office. 

VA also publishes a performance and accountability report for each 

fiscal year. The Committee conducts regular oversight and evaluation of the Department of Veterans Affairs and the Veterans’ Employment and Training Service under the Department of Labor. 

STATEMENTS OF THE VIEWS OF THE ADMINISTRATION

STATEMENT OF WILLIAM F. TUERK, UNDER SECRETARY FOR

MEMORIAL AFFAIRS, DEPARTMENT OF VETERANS AFFAIRS

H.R. 601

H.R. 601, the ‘‘Native American Veterans Cemetery Act 

of 2005,’’ would authorize the Secretary of Veterans Affairs 

to make grants to Native American tribal organizations to 

assist them in establishing, expanding, or improving veterans’ cemeteries on trust lands in the same manner and 


sroberts on PROD1PC70 with HEARING
28 

under the same conditions as grants to states are made 

under 38 U.S.C. § 2408. We strongly support enactment of 

this bill. 

The cemetery grants program has proven to be an effective way of making the option of veterans cemetery burial 

available in locations not conveniently served by our national cemeteries. H.R. 601 would create another means of 

accommodating the burial needs of Native American veterans who wish to be buried in tribal lands. 

While we are unsure of the number of grant applications 

that may be prompted by the bill’s enactment, we do not 

assume its passage would result in the appropriation of 

additional funds for the cemetery grants program. Hence, 

we estimate its enactment would be budget neutral. 

H.R. 5038

Section 2(b) of H.R. 5038, the ‘‘Veterans’ Memorial 

Marker Act of 2006,’’ would change the applicability date 

of VA’s current authority to provide a Government headstone or marker for the private cemetery grave of a veteran regardless of whether the grave has been marked at 

private expense. Under current law, this authority extends 

only to veterans whose deaths occurred on or after September 11, 2001. This provision of the bill would authorize 

VA to furnish such markers for the graves of veterans who 

died on or after November 1, 1990. We support enactment 

of this provision of the bill. 

Under current law, if a veteran died before September 

11, 2001, VA is authorized to furnish a Government headstone or marker only if the veteran’s grave is unmarked. 

Although this law has allowed VA to begin to meet the 

needs of families who view the Government-furnished 

marker as a means of honoring and publicly recognizing a 

veteran’s military service, VA is now in the difficult position of having to deny a benefit based solely on when a 

veteran died. 

Moreover, the law has never precluded the addition of a 

privately purchased headstone to a grave after placement 

of a Government-furnished marker, resulting in double 

marking. However, when a private marker had been 

placed in the first instance, a Government marker may not 

be provided if the veteran died before September 11, 2001. 

We believe this creates an arbitrary distinction 

disadvantaging families who promptly obtain a private 

marker. 

From October 18, 1979, until November 1, 1990, with 

the enactment of the Omnibus Budget and Reconciliation 

Act of 1990, VA paid a headstone or marker allowance to 

those families who purchased a private headstone or marker in lieu of a Government headstone or marker. Those 

families all had the opportunity to benefit from the VAmarker program. This provision of the bill would benefit 

families of those veterans who died between November 1, 

1990, and September 11, 2001. The extension of the authority to cover deaths since November 1, 1990, will assist 


sroberts on PROD1PC70 with HEARING
29 

VA in providing uniform benefits to veterans, regardless of 

the date of their death, and will meet public expectations 

for honoring veterans and their service to the Nation. 

We estimate that enactment of this provision of the bill would cost $113,000 during FY 2007, $286,000 over the 5- 

year period FY 2007 through FY 2011, and $286,000 over 

the 10-year period FY 2007 through 2016. VA pays for 

headstones and markers with funds from the Compensation and Pension appropriation account. 

VA’s authority to provide a Government headstone or 

marker for the graves of eligible veterans buried in private 

cemeteries, regardless of whether the grave is already 

marked with a privately purchased marker, will expire on 

December 31, 2006. Section 2(a) of this bill would extend 

VA’s authority to furnish the second marker benefit by one 

year. We support enactment of this provision of the bill. 

We would also recommend that VA be provided permanent 

authority to furnish the second marker benefit. 

Although the headstone and marker benefit was originally intended to ensure that no veteran’s grave remains 

unmarked, it has evolved into one that recognizes in death 

the service and sacrifices of those who served our Nation. 

Since the headstone and marker program’s transfer to VA 

from the Department of the Army in 1973, VA has furnished more than 8.7 million headstones and markers. 

The expanded second headstone or marker benefit has 

not resulted in a significant increase in demand for 

headstones and markers or appreciable costs for the headstone and marker program. Based on actual data from FY 

2005, it is estimated that about 5,000 headstones or markers would be provided in 2007 at an average cost of $100 

per marker as a result of the one-year reauthorization. The 

fiscal and administrative costs to provide this benefit to 

families are nominal. The percentage of eligible veterans 

receiving a Government-furnished marker at private cemeteries has remained fairly constant in the years prior to 

and during the expanded authority for this benefit. 

We would also like to suggest a revision to the statutory 

language in 38 U.S.C. § 2306, to accommodate the practical 

needs of a veteran’s family in obtaining a Government-furnished marker. VA promulgated 38 CFR § 38.631 to notify 

the public of the second-marker-benefit authority and to 

advise how VA would administer the benefit. The regulation states that VA will furnish its full product line of Government markers, which includes all available types of 

headstones and markers, in fulfilling requests for a ‘‘marker’’ as described in section 2306(d)(1). This clarification ensures that no otherwise eligible veteran is denied a second 

headstone or marker due to limitations of the size and 

type of headstone or marker that the grave can accommodate and that families are able to select the headstone or 

marker type preferred for the previously-marked grave of 

their loved one in the same manner as for an unmarked 

grave. Furthermore, the VA regulation clarified that, in 

cases where it was not feasible to place the marker ‘‘on the 


sroberts on PROD1PC70 with HEARING
30 

grave’’ as stated in section 2306(d)(1), a Government-furnished marker would be provided for those graves without 

adequate space for a second marker if the individual making the request certified on the application that the marker will be placed ‘‘as close to the grave as possible within 

the grounds of the private cemetery.’’ Additionally, the regulation notified the public that VA would deliver a marker 

to the cemetery where the grave is located or, if necessary, 

‘‘to a receiving agent for delivery to the cemetery’’ to accommodate the needs of the veteran’s family. We recommend that Congress ratify VA’s authority in this regard 

by incorporating into the statute the regulatory language 

in section 38.631 that discusses delivery, placement, and 

types of Government markers. 

Moreover, in order to eliminate ambiguity regarding the 

reference to ‘‘marker’’ in the statute, we recommend that 

Congress revise section 2306 to clarify that the Government is authorized to furnish a ‘‘headstone or marker,’’ as 

opposed to only a Government ‘‘marker,’’ for privatelymarked graves of eligible veterans interred in private 

cemeteries. 

Section 3 of this bill would authorize VA to provide an 

appropriate memorial headstone or marker to honor the 

memory of a deceased eligible dependent child of a veteran, when the child’s remains are unavailable for burial. 

This authority would permit the placement of a memorial 

headstone or marker for such an individual in a national 

or state veterans’ cemetery. The bill would define the term ‘‘eligible dependent child’’ as a child under 21 years of age, 

or under 23 years of age if pursuing a course of instruction 

at an approved educational institution, or a child who became permanently physically or mentally disabled and incapable of self-support before reaching 21 years of age, or 

before reaching 23 years of age if pursuing a course of instruction at an approved educational institution. 

VA currently may provide a memorial headstone or 

marker for the purpose of commemorating a veteran whose 

remains are unavailable for burial, for placement in a national, state, local, or private cemetery. Section 401 of Public Law 105–368, the ‘‘Veterans Programs Enhancement 

Act of 1998,’’ expanded eligibility for memorial headstones 

or markers to include the spouse or surviving spouse of a 

veteran, where the memorial headstone or marker is to be 

placed in a national or state veterans’ cemetery. 

Under current law, VA may not honor the request for a 

memorial headstone or marker from a veteran who wishes 

to memorialize his or her dependent child in a VA national 

cemetery or state veterans’ cemetery, when the child’s remains are unavailable for burial. Such a child would be eligible for burial in a national or state veterans’ cemetery 

were his or her remains available. If the spouse and a 

child of a veteran die at the same time and in the same 

manner, and the remains of neither is available, it would, 

in our view, be inequitable to provide a memorial headstone or marker to commemorate the spouse, but not the 


sroberts on PROD1PC70 with HEARING
31 

child. Section 3 of the draft bill would make eligibility for 

memorial headstones and markers for dependent children 

parallel to eligibility of such persons for burial in a national cemetery under 38 U.S.C. § 2402(5). We also note 

that, although the remarried spouse of a veteran is eligible 

to be buried in a national cemetery, this bill would not authorize VA to furnish a memorial marker for the remarried 

spouse of a veteran when the remains are unavailable. In 

order to provide consistency in eligibility requirements for 

burial and headstone and marker benefits, we recommend 

that Congress authorize VA to furnish a memorial marker 

for the remarried spouse of a veteran when the remains 

are unavailable. 

Also, section 3 of the bill would authorize VA to add a 

memorial inscription to a veteran’s headstone or marker or 

memorial headstone or marker, if feasible, rather than furnishing a separate headstone or marker for the veteran’s 

dependent child. Such authorization is already provided 

with respect to a veteran’s surviving spouse. 

The cost for these additional benefits would be nominal. 

We do not anticipate receiving many requests for memorial 

headstones or markers for children. In 2002, VA received 

two requests for memorial headstones or markers from 

veterans who wanted to memorialize their children in a 

VA national cemetery. In 2003, VA received one request. 

The average cost of a memorial headstone or marker, including transportation, is currently $92. Memorial 

headstones or markers are paid for out of the Compensation and Pension appropriation account. 

STATEMENT OF GORDON H. MANSFIELD, DEPUTY SECRETARY OF VETERANS AFFAIRS, DEPARTMENT OF VETERANS AFFAIRS

Good afternoon Mr. Chairman and Members of the Subcommittee: Thank you for inviting me here today to 

present the Administration’s views on (1) H.R. 4791, (2) a 

draft education benefits bill, and (3) a proposed amendment to H.R. 3082, each of which would affect Department 

of Veterans Affairs (VA) programs of benefits and services. 

I understand two other draft bills pertaining to programs 

administered by the Department of Labor (DOL) also are 

the subject of today’s hearing. VA defers to DOL as to 

those draft bills. 

Before I discuss the bills the Subcommittee is considering today, I would like to note that, as you know, these 

measures would affect direct spending and receipts. Accordingly, the support VA expresses here for particular bill 

provisions is contingent on accommodating the provisions 

within the President’s Budget request if the costs are discretionary, and would require acceptable offsetting legislation if the costs are mandatory. 


sroberts on PROD1PC70 with HEARING
32 

EXCEPTION FOR GOVERNMENT-SUPPORTED INSTITUTIONS ADMINISTERING NONACCREDITED COURSES TO REQUIREMENT

OF REFUNDING UNUSED TUITION

Section 3 of the draft bill would exempt Federal, State, 

or local government institutions, as well as those primarily 

supported by Federal. State, or local government funds, 

from the requirement that public or private, profit or nonprofit, educational institutions refund the unused portion 

of tuition, fees, and other charges for nonaccredited 

courses to an individual if that individual fails to enter the 

course or withdraws or is discontinued therefrom any time 

prior to completion of the course. 

Under current law, such institutions must comply with 

the refund policy requirements for nonaccredited courses 

pursuant to chapter 36, United States Code. 

VA cannot support this section since we are aware of no 

reason why veterans should be disadvantaged by not receiving refunds in appropriate circumstances merely because the institution involved is a governmental entity or 

supported with government funds. 

EXTENSION AND PROVISION OF ADDITIONAL QUALIFYING

WORK-STUDY ACTIVITIES FOR VETERANS

Section 5 of the draft bill would extend through December 26, 2011, work-study opportunities for veteran-students and eligible dependents to include: outreach services 

furnished by State approving agencies to servicemembers 

and veterans; activities for veteran-students and/or dependents (who have declared an academic major) within 

the department of an academic discipline that complements and reinforces the program of education pursued 

by the student; services in connection with provision of 

domiciliary care and nursing home and hospital care to 

veterans (including state veterans’ homes) under chapter 

17 of title 38, United States Code; for those receiving educational assistance under chapter 1606 of title 10, activities relating to the administration of that chapter at Department of Defense (DoD), Coast Guard, or National 

Guard facilities; and activities relating to the administration of national and state veterans’ cemeteries. With regard to this provision, VA has data showing that that 

these work-study activities have been consistently performed and, therefore, believe that rather than extending 

the ending date for these work-study opportunities, they 

should be made permanent. 

Under current law, VA makes additional educational assistance allowance payments (so-called work-study allowances) to eligible individuals who agree to perform certain 

specified services, such as assisting in outreach to service 

members and veterans regarding available benefits. To 

participate, the individual must be pursuing a program of 

rehabilitation, education, or training under chapter 30, 31, 

32, 34, or 35 of title 38 or chapter 1606 or 1607 of title 10 

United States Code. 


sroberts on PROD1PC70 with HEARING
33 

Section 5 of the draft bill also would expand the term ‘‘work-study activity’’ for qualifying individuals to include 

(a) the provision of assistance in identifying employment 

and training opportunities, as well as related information 

and services under the Transition Assistance Program 

(TAP) and the Disabled Transition Assistance Program 

(DTAP) to members of the Armed Forces being separated 

from active duty and their spouses (under the supervision 

of a Disabled Veterans Outreach Program (DVOP) specialist or Local Veterans Employment Representative); and 

(b) any activity approved by VA in support of a Senior Reserve Officers’ Training Corps program at an educational 

institution or military installation (under the supervision 

of an administrator or instructor referred to in section 

2111 of title 10). 

With regard to work-study students assisting with the 

TAP and DTAP programs, we agree with the intent of the 

provision. However, we are concerned, on the one hand, 

with some of the functions the student would be permitted 

to perform and, on the other hand, with certain restrictions imposed on their performance of other functions. We 

don’t believe, for example, that work-study students, in 

most cases, could provide the employment assistance in 

identifying employment and training opportunities provided for in this section because such assistance requires 

specialized training. Accordingly, we would suggest deleting reference to such functions. Further, this section would 

unnecessarily restrict use of work-study students in support of the TAP and DTAP programs to activities under 

the supervision of DOL employees. In many cases, however, VA, DoD, or contractor personnel would be appropriate supervisors, as well. Therefore, we would suggest 

including language that would permit work-study students 

to assist with the TAP and DTAP programs in ways consistent with their abilities. 

Finally, with regard to using work-study students to 

support Senior ROTC programs at educational institutions 

and military installations, VA has no objection to this portion of section 5. 

If enacted, VA estimates section 5 of this draft bill would 

cost $1.6 million during FY 2007 and $8.3 million over the 

period FYs 2007–2016. 

REPORT ON IMPROVEMENT IN ADMINISTRATION OF

EDUCATIONAL ASSISTANCE BENEFITS

Section 6 would require VA, within 90 days from the 

date of enactment of the draft bill, to submit a report to 

Congress that proposes methods to streamline the processes and procedures of administering education benefits 

under chapters 30, 31, 32, 34, 35, and 36 of title 38 and 

chapters 1606 and 1607 of title 10, United States Code. 

Given the breadth of the request and the complexity of 

the programs in chapters 30, 31, 32, 34, 35 and 36 of title 

38 and chapters 1606 and 1607, of title 10, United States 

Code, it is, we believe, unrealistic to expect such a report 


sroberts on PROD1PC70 with HEARING
34 

to be written in 90 days. We would have no objection to 

this section if VA were given 6 months in which to submit 

the required the report. 

RESTORATION OF LOST ENTITLEMENT FOR INDIVIDUALS WHO

HAD TO DISCONTINUE A COURSE OF EDUCATION BECAUSE

OF BEING ORDERED TO FULL-TIME NATIONAL GUARD DUTY

Section 7 would make a technical amendment to restore 

entitlement under the chapter 35 education benefits program that eligible persons lost as a result of being involuntarily ordered to full-time National Guard duty after September 11, 2001, pursuant to 32 U.S.C. § 502(f). 

In enacting Public Law 107–103, Congress restored education benefits to National Guard personnel called to active duty under specific sections of title 10, United States 

Code, and extended their delimiting period for using those 

benefits. Public Law 108–183 likewise extended the delimiting date for National Guard personnel entitled to chapter 

35 benefits who had to discontinue course pursuit as a result of being called to full time National Guard duty under 

section 502(f) of title 32, United States Code, but inadvertently omitted provisions restoring entitlement for those 

persons as it had for similarly circumstanced individuals 

called to active duty under title 10. Section 7 would remedy this oversight. We note that the effective date provision is clear as to the enrollment periods to which this section applies. It is unclear, however, as to whether there is 

any limit as to how far back in time the title 32 service 

could occur. VA recommends the effective date be September 11, 2001, to accommodate those ordered to fulltime National Guard duty under section 512(f) of title 32 

on or after that date. 

VA supports section 7 and suggests this provision be extended to MGIB participants under section 3013(f)(2)(A), 

as well. 

If enacted, VA estimates section 7 of this draft bill would 

cost $3 thousand during FY 2007 and $96 thousand over 

the period FYs 2007–2016. 

TECHNICAL AMENDMENTS

Section 8 contains technical corrections to the workstudy program provisions. VA has no objection to this section. 

DEPARTMENT OF VETERANS AFFAIRS GOALS FOR PARTICIPATION BY SMALL BUSINESSES OWNED AND CONTROLLED BY

VETERANS IN PROCUREMENT CONTRACTS

Section 2 of H.R. 3082 would amend subchapter II of 

chapter 81 of title 38, United States Code, to add a new 

section 8127 governing VA contracting goals and preferences for participation by small business concerns owned 

and controlled by veterans and small business concerns 

owned and controlled by veterans with service-connected 

disabilities. Section 3 would, in addition, add a new section 


sroberts on PROD1PC70 with HEARING
35 

8128 to such subchapter mandating contracting priority for 

certain small business concerns owned and controlled by 

veterans when goods and services are being procured pursuant to contracting preferences under title 38 or other 

law. Current law establishes a 3% government-wide prime 

and subcontracting goal for small business concerns owned 

and controlled by veterans with service-connected disabilities. 

VA supports the Amendment to H.R. 3082. However, we 

request that the following changes be made before the bill 

moves forward: 

In Sole Source Contracts, section 8127(c), we recommend revising the language to read that Contracting Officers may award a contract using other 

than competitive procedures. The amendment reads 

‘‘shall’’ which is inconsistent with subparagraphs (b) 

and (d) of this section. 

In Database of Veteran-owned Businesses, section 

8127(f), we recommend that subparagraph (4)(A) be 

revised to read that the Secretary shall verify that veterans own at least 51% of the business. The current 

language reads ‘‘verification that each person listed in 

the database is a veteran.’’ The database does not list 

all persons who own the business. 

In Change In Ownership or Control, section 8127(i), 

we suggest replacing word ‘‘terminate’’ with ‘‘end.’’ For 

Federal procurement purposes, the word ‘‘terminate’’ has a very specific meaning. When an existing term is 

completed, the contract ends and is then closed out. 

We would further recommend revising the section to 

remove the parenthetical phrase. Currently, it leads 

the reader to believe that options may be executed 

after the change of ownership, which we believe is not 

the intent of the section. The following paragraph establishes that after a change in ownership, one option 

may be exercised. We understand this may be necessary to accomplish re-procurement. 

In Quarterly Reports, section 8127(k), we recommend revising subparagraphs (1) through (3) to 

read ‘‘percentage of contract dollars awarded.’’ This 

has very different meaning than ‘‘percentage of contracts awarded’’ and is consistent with reporting of all 

small business program accomplishments. 

We do have some concern about the Quarterly Reports. 

This amendment will establish a single, consolidated goal 

which will collect information from both prime and subcontract actions with veterans and a separate consolidated 

goal for accomplishments with service-disabled veterans. 

Currently, most prime contractors report their subcontracting actions annually or semi-annually. To obtain 

quarterly reports from VA’s prime contractors will require 

contract modifications which will cost the Department as 

this quarterly reporting will be unique in Federal government. These same contractors will continue to report accomplishments with other small business programs annuVerDate Aug 31 2005 20:30 Jul 26, 2006 Jkt 049006 PO 00000 Frm 00035 Fmt 6659 Sfmt 6969 E:\HR\OC\HR592.XXX HR592

sroberts on PROD1PC70 with HEARING
36 

ally or semi-annually. We believe this will be both costly 

and confusing for prime contractor personnel. Therefore, 

we request that the amendment be revised to require annual reporting on these contracting accomplishments, 

which should not add additional reporting burdens on our 

prime contractors. 

In section 8127(l), Definitions, we have concern with the 

language where it attempts to define ‘small business concern owned and controlled by veterans.’ In subparagraph 

(2)(B, it addresses ‘‘the management and daily business 

operations of which are controlled by one or more veterans 

or, in the case of a veteran with a service-connected disability that is permanent and severe, the spouse of such 

veteran.’’ This implies that when a veteran has such a disability, his/her spouse must control daily business operations to be considered. We do not believe that was the intent of the committee. Public Law 106–50, ‘‘The Veterans 

Entrepreneurship and Small Business Development Act of 

1999,’’ and implementing regulations define small businesses owned and controlled by service-disabled veterans 

to include situations where there is a spouse or permanent 

caregiver who is legally designated in writing to undertake 

responsibility for managing the well-being of the service 

disabled veteran. We request the language be amended to 

reflect that situation. 

VA has been a leader in use of the service-disabled veteran-owned small business set-aside tool. However, for 

many reasons, VA has not recently achieved the Secretary’s veteran-owned small business goal. We believe the 

flexibility in the proposed amendment will give contracting 

officers the opportunity to ‘‘Choose Veterans First.’’ This 

legislation will offset the negative impression that some 

veterans have about being left out of the Federal procurement process. The VA-specific set-aside tool will deliver an 

important message of support to these veteran-owned 

small businesses. 

TESTIMONY OF CHARLES CICCOLELLA, ASSISTANT SEC- RETARY FOR VETERANS’ EMPLOYMENT AND TRAINING, 

U.S. DEPARTMENT OF LABOR

THE VETERANS STATE EMPLOYMENT GRANT IMPROVEMENT

ACT OF 2006

Section 2: Requires the Secretary of Labor to ‘‘maintain 

guidelines for use by States in establishing the professional qualifications required * * * for determining the 

eligibility for employment, and eligibility for the continued 

employment’’ for Disabled Veteran Outreach Program 

(DVOP) specialists and Local Veterans Employment Representatives (LVER). 

We agree with the idea that our Nation’s veterans deserve the highest quality of service provided from DVOPs 

and LVERs that are highly trained and motivated. Federal 

guidelines would assist the states in establishing profesVerDate Aug 31 2005 20:30 Jul 26, 2006 Jkt 049006 PO 00000 Frm 00036 Fmt 6659 Sfmt 6969 E:\HR\OC\HR592.XXX HR592

sroberts on PROD1PC70 with HEARING
37 

sional qualifications for veterans’ employment representatives and still allow the states to retain the overall flexibility to accommodate their unique personnel rules and 

guidelines. However, there are potential problems that 

may limit the implementation of these guidelines. They include but are not limited to state personnel and merit 

staffing requirements and union bargaining agreements. 

The states will be required to submit their professional 

qualifications as a condition of the state grant. We would 

offer our assistance to the states to assure compliance with 

this provision and further ensure their qualifications meet 

the guidelines. 

Past experience leads us to believe that guidelines 

issued at the federal level will vary widely in their implementation with each individual state entity. State incentive awards, as established in the Jobs for Veterans Act 

(P.L. 107–288), are a recent example of the difficulties inherent in enforcing federally-mandated guidelines within a 

disparate and decentralized system. Key proponents of the 

legislative mandate in 2002 assumed that this provision 

would be embraced by the states and implemented with 

relative ease. In practice, implementation has proven very 

difficult. States were forced to contend with legislative, 

regulatory, policy or union agreements that prohibited or 

limited the types of incentives that could be provided, thus 

placing them at odds with federal and state mandates. 

A second expected consequence is likely to be an increased workload burden on state staff. Most state personnel systems have similar qualification standards for 

both DVOP/LVER and comparable positions. Our concern 

is that federal mandates that add qualifications for DVOP/ 

LVERs might result in higher salaries that cannot be absorbed in the existing budget structure, leading to fewer 

positions. While the staff hired may well be higher quality 

with more experience, fewer veterans may receive services. 

It is our opinion that federally mandated qualifications established outside of the grant-negotiation process, while 

potentially leading to better-qualified DVOP/LVERs, will 

decrease the staff to veteran ratio nationwide. 

Section 3: This section defines DVOP/LVER part-time 

work provision as meaning, ‘‘not less than a half-time 

basis.’’ The Jobs for Veterans Act provided valuable flexibility as it allowed DVOPs and LVERs to be employed 

part-time, but it did not define part-time. To reduce uncertainty by the States about the definition, DOL’s current 

grant language defines part-time as half-time. In spite of 

our guidance, there remains confusion in some states over 

what ‘‘half-time’’ means, which makes it more difficult to 

monitor state compliance with the grant provisions. Our 

concern is that the language in the draft bill would add to 

the States’ confusion. Consequently, DOL recommends 

that this provision be changed to state that part-time 

means ‘‘half-time,’’ which DOL believes provides adequate 

flexibility to the States. 


sroberts on PROD1PC70 with HEARING
38 

Section 4: This section will require the states to establish a ‘‘local performance information system’’ within three 

years following enactment. The states have undergone several reporting system changes in recent years. On July 1, 

2005, states again were required to adapt their reporting 

to the set of common outcome measures used by other 

training and employment programs in DOL, as well as 

other agencies. To improve the accuracy and reduce the 

costs associated with collecting the new measures, DOL is 

formulating a new reporting system. While DOL agrees 

with the intent of the provision, to improve services at the 

local level and aid in the determination of resource allocation, we request that the Committee tie the timeline to the 

roll-out of the new reporting system rather than to a legislative timeline. In so doing, DOL will keep the Committee 

apprised of ongoing progress. In the interim, we are exploring ways for states to provide the requested information within their existing reporting systems. 

Section 5: Establishes ‘‘State Licensing and Certification 

Programs for Veterans.’’ We believe this provision would 

have additional budgetary implications and may also have 

other unanticipated consequences since certification, 

credentialing, and licensing go well beyond a single state’s 

jurisdiction. Moreover, not all military training and experiences need formal licensing or certification for veterans to 

find civilian jobs. The Veterans Certification and Licensure 

Act of 2006, that we comment on below, establishes the 

Veterans Advisory Committee on Certification, 

Credentialing, and Licensing. If established, such an advisory committee could review this issue and make recommendations on the best approach to addressing this at 

the state and sub-state levels. 

Section 6: This section requires that newly hired DVOPs 

and LVERs be trained at the National Veterans Training 

Institute (NVTI) within three years following the date of 

their hiring, and extends training requirements to additional existing employees. Currently, NVTI provides such 

training, funded by DOL, to all DVOPs and LVERS. NVTI 

was originally established to provide consistent training 

for these staff. However, not all staff have been able to attend. 

This section has additional budgetary implications that 

we are currently reviewing. We suggest amending this language to allow NVTI to provide training at a site located 

in the state or through an online distance training arrangement. 

Section 7: This section establishes a ‘‘Demonstration 

Project on Contracting for Placement of Veterans in High 

Un-Employment Areas.’’ This demonstration has additional budgetary implications. 

We believe such legislation is unnecessary. One of the 

underlying principles of the Jobs for Veterans Act was for 

states to have the flexibility to determine where best to deploy their DVOPs and LVERs. We believe enough flexiVerDate Aug 31 2005 20:30 Jul 26, 2006 Jkt 049006 PO 00000 Frm 00038 Fmt 6659 Sfmt 6969 E:\HR\OC\HR592.XXX HR592

sroberts on PROD1PC70 with HEARING
39 

bility exists for states to focus on their high unemployment 

areas and areas in greatest need. 

The draft also discusses ‘‘a locality where the unemployment rate for veterans exceeds the national average unemployment rate.’’ Veteran’s unemployment data are not 

available for specific localities. 

Section 8: This section modifies the incentive awards 

that were established in the Jobs for Veterans Act. The 

Department supports this measure as written with the exception that the Assistant Secretary makes the final decision on the incentive awards. 

Section 9: Requires DOL to publish regulations implementing priority of service. We do not believe regulations 

are needed. After enactment of the Jobs for Veterans Act, 

a DOL work group assessed the impact of establishing 

such regulations and determined that policy guidance is 

the method that could be adopted most quickly and still 

have the same impact as a regulatory approach. Policy 

guidance was subsequently published in September 2003. 

Nineteen DOL programs are subject to the priority service 

provisions and these programs change from time to time. 

As the regulatory process is time consuming, it would be 

difficult to respond quickly to changes in these programs. 

With policy guidance, adjustments can be made in a relative short period of time as opposed to the more time-consuming process of establishing or changing regulations. 

THE VETERANS CERTIFICATION AND LICENSURE ACT OF 2006

We would like to bring to the Committee’s attention the 

existence of the Department of Veterans Affairs (VA) Professional Certification and License Advisory Committee 

(PCLAC). DOL believes that creating the proposed advisory committee in DOL is duplicative of efforts already underway at the VA. We recommend that just one committee 

address the issue of certification and licensure for veterans. 

CONGRESSIONAL BUDGET OFFICE COST ESTIMATE

The following letter was received from the Congressional Budget 

Office concerning the cost of the reported bill: 

U.S. CONGRESS, CONGRESSIONAL BUDGET OFFICE, Washington, DC, July 19, 2006. 

Hon. STEVE BUYER, Chairman, Committee on Veterans’ Affairs, 

House of Representatives, Washington, DC. 

DEAR MR. CHAIRMAN: As you requested, the Congressional Budget Office has prepared the enclosed cost estimate for H.R. 3082, the 

Veterans Small Business and Memorial Affairs Act of 2006. 


sroberts on PROD1PC70 with HEARING
40 

If you wish further details on this estimate, we will be pleased 

to provide them. The CBO staff contact is Dwayne M. Wright. 

Sincerely, 

DONALD B. MARRON, 

Acting Director. 

Enclosure. 

H.R. 3082—Veterans Small Business and Memorial Affairs Act of 

2006 

Summary: H.R. 3082 would make changes to several programs 

for veterans, primarily for veterans’ employment and training benefits and veterans’ burial benefits. CBO estimates that implementing this bill would cost $1 million in 2007 and $22 million 

over the 2007–2011 period, assuming appropriation of the necessary amounts. In addition, CBO estimates that enacting this legislation would increase direct spending for veterans programs by 

less than $500,000 in 2007 and by $2 million over the 2007–2016 

period. 

H.R. 3082 contains no intergovernmental or private-sector mandates as defined in the Unfunded Mandates Reform Act (UMRA) 

and would impose no costs on state, local, or tribal governments. 

Estimated cost to the Federal Government: The estimated budgetary impact of H.R. 3082 is summarized in the following table. 

The costs of this legislation fall within budget function 700 (veterans benefits and services). 

TABLE 1.—ESTIMATED BUDGETARY IMPACT OF H.R. 3082 

By fiscal year, in millions of dollars— 

2007 2008 2009 2010 2011 

CHANGES IN SPENDING SUBJECT TO APPROPRIATION 

Estimated authorization level ............................................................. 4 11 4 3 3 

Estimated outlays ............................................................................... 1 6 8 4 3 

CHANGES IN DIRECT SPENDING 

Estimated budget authority ................................................................ * * * * * 

Estimated outlays ............................................................................... * * * * * 

Note: * = less than $500,000. 

Basis of estimate 

For this estimate, CBO assumes that the bill will be enacted 

near the start of fiscal year 2007 and that the necessary amounts 

will be appropriated for each year. 

Spending subject to appropriation 

H.R. 3082 contains provisions that would affect several programs 

for veterans. CBO estimates that implementing this bill would cost 

$1 million in 2007 and almost $22 million over the 2007–2011 period, assuring appropriation of the necessary amounts (see Table 

2). 

Veterans’ Employment and Training. Title III would establish 

two demonstration projects for veterans’ employment and training. 

Under section 306, which would be authorized at $3 million annually for fiscal years 2007 through 2011, a private contractor would 

be used for job placement services for disabled veterans. Section 

309, which would be authorized at $1 million for each of fiscal 


sroberts on PROD1PC70 with HEARING
41 

years 2007 through 2009, would focus on providing credentials in 

high growth or high demand occupations to veterans. Assuming appropriation of the authorized amounts for the demonstration 

projects, CBO estimates that those provisions would cost $12 million over the 2007–2011 period. 

TABLE 2.—CHANGES IN SPENDING SUBJECT TO APPROPRIATION UNDER H.R. 3082 

By fiscal year, in millions of dollars—

2007 2008 2009 2010 2011 

Veterans’ employment and training: 

Authorization level ...................................................................... 4 4 4 3 3 

Estimated outlays ...................................................................... 1 3 4 4 3 

Cemetery grants to tribal organizations: 

Estimated authorization level .................................................... 0 7 0 0 0 

Estimated outlays ...................................................................... 0 3 4 0 0 

Total changes in spending subject to appropriation under H.R. 

3082: 

Estimated authorization level .................................................... 4 11 4 3 3 

Estimated outlays ...................................................................... 1 6 8 4 3 

In addition, Title III would require the Comptroller General to 

submit a report on the project dealing with private contracting of 

job placement services. CBO estimates that report would cost less 

than $500,000. 

Cemetery Grants to Tribal Organizations. Section 201 would 

allow the Department of Veterans Affairs (VA) to provide grants to 

tribal organizations to establish, expand, or improve veterans’

cemeteries on trust lands owned by the tribal organizations. Under 

current law, VA can only provide grant money to States for the 

purposes of establishing, expanding, or improving a veterans’ cemetery. VA reports that state cemetery grants range from $4 million 

to $7 million, depending on the size of the project, and that the average time to establish a cemetery from design to opening is 24 

months. CBO expects that one such request for a cemetery would 

be made over the 2007–2011 period, and estimates that implementing section 201 would cost $7 million over that period, subject 

to appropriation of the necessary amounts. 

Small Business Preferences. Section 101 would require VA to establish certain annual goals for contracting with small businesses 

owned and controlled by veterans, with preference going to those 

businesses which are owned by veterans with a service-connected 

disability. The bill also would allow VA to use noncompetitive procedures for awarding contracts to ensure that such annual goals 

are met. 

Section 101 also would require VA to maintain a database of 

small businesses that are owned and controlled by veterans and to 

verify the businesses’ veteran-owned status. In addition, VA would 

be required to verify the disability status of those veterans who are 

listed as having service-connected disabilities. According to VA, it 

already maintains a database of small businesses owned and controlled by veterans. VA plans to obtain the verifications required 

under this section by requiring veterans who wish to be included 

on the list to submit affidavits of both their service-connected status as well as their veteran-owned status. CBO estimates that this 

provision would have an insignificant effect on federal spending. 


sroberts on PROD1PC70 with HEARING
42 

Direct spending 

H.R. 3082 contains provisions that would increase direct spending for veterans burial and readjustment benefits programs. CBO 

estimates that enacting this bill would increase direct spending for 

veterans programs by less than $500,000 in 2007, by $1 million 

over the 2007–2011 period, and by $2 million over the 2007–2016 

period. 

Grave Markers. Section 202 would allow VA to provide a marker 

or headstone to be placed on a marked grave or other appropriate 

location in a private cemetery to commemorate a veteran’s military 

service for those veterans who were buried after November 11, 

1990. Under current law, veterans buried in a private cemetery are 

eligible for a second marker or headstone only if they were buried 

after September 11, 2001. 

Section 202 also would indefinitely extend the period during 

which a marker or headstone could be requested. The authority for 

VA to provide government headstones or markers to veterans buried in private cemeteries currently expires on December 31, 2006. 

Based on VA projections regarding veterans’ death rates and the 

number of veterans who will be buried in private cemeteries, CBO 

estimates that about 20,000 requests for headstones or markers 

would be made over the 2007–2016 period. The estimate also reflects information from a VA study that showed that only 27 percent of private cemeteries allow second markers and that less than 

5 percent of those eligible would participate in this program. According to VA, a marker or headstone costs about $92 on average. 

CBO estimates that this provision would result in an increase in 

spending for burial benefits of $1 million over the 2007–2011 pe- riod and $2 million over the 2007–2016 period. 

Other provisions. The following provisions would have an insignificant impact on direct spending: • Section 203 would provide a VA marker or headstone to 

memorialize deceased, dependent children of veterans whose 

remains are unavailable for burial. Veterans and their spouses 

whose remains are unavailable for burial are eligible for memorialization with a VA marker or headstone under current 

law. CBO estimates that under this section about 30 requests 

would be made over the 10-year period. With an average cost 

of about $92 for each marker, CBO estimates that direct 

spending for burial benefits would increase by less than 

$500,000 over the 2007–2016 period. • Under current law, the VA can compensate certain individuals for specific work-study programs associated with the department, although the authorization for several of the specified programs to hire work-study students would expire in December of 2006. Section 402 would extend the authorization for 

those expiring programs for another six months, through June 

2007. Based on information from VA regarding the numbers of 

participants in the expiring programs, CBO estimates that this 

provision would increase direct spending by less than $500,000 

in 2007. 

• Section 404 would extend the period of eligibility for survivors’ and dependents’ education benefits for those dependents 

who are members of the National Guard and who are involuntarily ordered to full-time duty under section 502(f) of title 32 


sroberts on PROD1PC70 with HEARING
43 

of the U.S. Code. (This expanded eligibility would be retroactive to September 11, 2001.) Based on information from VA 

concerning the number of dependents using education benefits 

who have been called to active duty with the National Guard, 

CBO estimates that this provision would increase direct spending by less than $500,000 over the 2007–2016 period. 

Intergovernmental and private-sector impact: H.R. 3082 contains 

no intergovernmental or private-sector mandates, as defined in 

UMRA, and would impose no costs on state, local, or tribal governments. The bill would add several new requirements for states participating in an employment program for veterans and would make 

tribal governments eligible for a current program to establish, expand, or improve veteran cemeteries. Any costs to those governments would be incurred as a condition of participating in a voluntary federal program. 

Previous CBO estimate: On July 19, 2006, CBO transmitted a 

cost estimate for S. 2694, the Veterans Small Business and Memorial Affairs Act of 2006, as ordered reported by the Senate Committee on Veterans Affairs on June 22, 2006. Sections 201 and 203 

of S. 2694 are similar to sections 201 and 202 of H.R. 3038, and 

the estimated costs are identical. 

Estimate prepared by: Federal costs: Burial Benefits: Dwayne M. 

Wright; Readjustment Benefits: Mike Waters; Veterans’ Employment and Training: Christina Hawley Anthony. 

Impact on State, local, and tribal governments: Melissa Merrell; 

Impact on the private sector: Allison Percy. 

Estimate approved by: Peter H. Fontaine, Deputy Assistant Director for Budget Analysis. 

STATEMENT OF FEDERAL MANDATES

The preceding Congressional Budget Office (CBO) cost estimate 

states that H.R. 3082, as amended, does not contain any intergovernmental and private-sector mandates as defined in the Unfunded 

Mandates Reform Act (UMRA), Public Law 104–4. 

STATEMENT OF CONSTITUTIONAL AUTHORITY

Pursuant to Article I, section 8 of the United States Constitution, 

the reported bill is authorized by Congress’ power to ‘‘provide for 

the common Defense and general Welfare of the United States.’’

CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED

In compliance with clause 3(e) of rule XIII of the Rules of the 

House of Representatives, changes in existing law made by the bill, 

as reported, are shown as follows (existing law proposed to be omitted is enclosed in black brackets, new matter is printed in italic, 

existing law in which no change is proposed is shown in roman): 

TITLE 38, UNITED STATES CODE 

* * * * * * * 

PART II—GENERAL BENEFITS 

* * * * * * * 


sroberts on PROD1PC70 with HEARING
44 

CHAPTER 23—BURIAL BENEFITS 

* * * * * * * 

§ 2306. Headstones, markers, and burial receptacles 

(a) * * * 

(b)(1) * * * 

(2) For purposes of paragraph (1), an eligible individual is any 

of the following: 

(A) * * * 

* * * * * * * 

(C) An eligible dependent child of a veteran. 

* * * * * * * 

(4) For purposes of this subsection: 

(A) * * * 

* * * * * * * 

(C) For purposes of this section, the term ‘‘eligible dependent 

child’’ means a child—

(i) who is under 21 years of age, or under 23 years of age 

if pursuing a course of instruction at an approved educational institution; or 

(ii) who is unmarried and became permanently physically or mentally disabled and incapable of self-support 

before reaching 21 years of age, or before reaching 23 years 

of age if pursuing a course of instruction at an approved 

educational institution. 

* * * * * * * 

(d)(1) The Secretary shall furnish, when requested, an appropriate Government headstone or marker at the expense of the 

United States for the grave of an individual described in paragraph 

(2) or (5) of subsection (a) who is buried in a private cemetery, notwithstanding that the grave is marked by a headstone or marker 

furnished at private expense. Such a headstone or marker may be 

furnished only if the individual making the request for the Government headstone or marker certifies to the Secretary that the headstone or marker will be placed on the grave for which the headstone 

or marker is requested. If placing the Government headstone or 

marker on the grave for which it is requested is impossible or impracticable, a headstone or marker may be furnished if the individual making the request for the headstone or marker certifies to 

the Secretary that the headstone or marker will be placed within the 

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

or marker is requested and as close as possible or practicable to that 

grave. 

(2) Any headstone or marker furnished under this subsection 

shall be delivered by the Secretary directly to the cemetery where 

the grave is located or to a receiving agent of that cemetery. 

ø(3) The authority to furnish a marker under this subsection expires on December 31, 2006. 

ø(4) Not later than February 1, 2006, the Secretary shall submit 

to the Committees on Veterans’ Affairs of the Senate and House of 

Representatives a report on the use of the authority under this 

subsection. The report shall include the following: 


sroberts on PROD1PC70 with HEARING
45 

ø(A) The rate of use of the benefit under this subsection, 

shown by fiscal year. 

ø(B) An assessment as to the extent to which markers furnished under this subsection are being delivered to cemeteries 

and placed on grave sites consistent with the provisions of this 

subsection. 

ø(C) The Secretary’s recommendation for extension or repeal 

of the expiration date specified in paragraph (3).¿ 

(3) The headstone or marker furnished under this subsection shall 

be the headstone or marker selected by the individual making the 

request for the headstone or marker from among all the headstones 

and markers made available by the Government and certified as acceptable for placement. 

* * * * * * * 

(f)(1) When the Secretary has furnished a headstone or marker 

under subsection (a) for the unmarked grave of an individual, the 

Secretary shall, if feasible, add a memorial inscription to that headstone or marker rather than furnishing a separate headstone or 

marker under that subsection for the surviving spouse or eligible 

dependent child of such individual. 

(2) When the Secretary has furnished a memorial headstone or 

marker under subsection (b) for purposes of commemorating a veteran or an individual who died in the active military, naval, or air 

service, the Secretary shall, if feasible, add a memorial inscription 

to that headstone or marker rather than furnishing a separate memorial headstone or marker under that subsection for the surviving 

spouse or eligible dependent child of such individual. 

(g)(1) * * * 

* * * * * * * 

(3) A headstone or marker may not be furnished under subsection 

(d) for the grave of a person described in section 2411(b) of this 

title. 

* * * * * * * 

CHAPTER 24—NATIONAL CEMETERIES AND MEMORIALS 

* * * * * * * 

§ 2408. Aid to States for establishment, expansion, and improvement of veterans’ cemeteries 

(a) * * * 

* * * * * * * 

(f)(1) The Secretary may make grants under this subsection to any 

tribal organization to assist the tribal organization in establishing, 

expanding, or improving veterans’ cemeteries on trust land owned 

by, or held in trust for, the tribal organization. 

(2) Grants under this subsection shall be made in the same manner, and under the same conditions, as grants to States are made 

under the preceding provisions of this section. 

(3) In this subsection: 

(A) The term ‘‘tribal organization’’ has the meaning given 

that term in section 3765(4) of this title. 


sroberts on PROD1PC70 with HEARING
46 

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

in section 3765(1) of this title. 

* * * * * * * 

PART III—READJUSTMENT AND RELATED BENEFITS 

* * * * * * * 

CHAPTER 34—VETERANS’ EDUCATIONAL ASSISTANCE 

* * * * * * * 

SUBCHAPTER IV—PAYMENTS TO ELIGIBLE VETERANS; 

VETERAN-STUDENT SERVICES 

* * * * * * * 

§ 3485. Work-study allowance 

(a)(1) * * * 

* * * * * * * 

(4) For the purposes of this section, the term ‘‘qualifying workstudy activity’’ means any of the following: 

(A) The outreach services program under chapter 63 of this 

title as carried out under the supervision of a Department employee or, during the period preceding øDecember 27, 2006¿ 

June 30, 2007, outreach services to servicemembers and veterans furnished by employees of a State approving agency. 

* * * * * * * 

(C) The provision of hospital and domiciliary care and medical treatment under chapter 17 of this title, including, during 

the period preceding øDecember 27, 2006¿ June 30, 2007, the 

provision of such care to veterans in a State home for which 

payment is made under section 1741 of this title. 

* * * * * * * 

(E) In the case of an individual who is receiving educational 

assistance under chapter 1606 or 1607 of title 10, an activity 

relating to the administration of that chapter at Department 

of Defense, Coast Guard, or National Guard facilities. 

(F) During the period preceding øDecember 27, 2006¿ June 

30, 2007, an activity relating to the administration of a national cemetery or a State veterans’ cemetery. 

* * * * * * * 

(b) Notwithstanding any other provision of law, the Secretary 

shall, subject to the provisions of subsection (e) of this section, utilize, in connection with the activities specified in subsection (a)(1) 

of this section, the service of individuals who are pursuing programs of rehabilitation, education, or training under chapter 30, 

31, 32, or 34 of this title or øchapter 106¿ chapter 1606 or 1607 

of title 10, at a rate equal to at least three-quarters of that required of a full-time student. In carrying out this section, the Secretary, wherever feasible, shall give priority to veterans with disabilities rated at 30 percent or more for purposes of chapter 11 of 

this title. In the event an individual ceases to be at least a threequarter-time student before completing such agreement, the indiVerDate Aug 31 2005 20:30 Jul 26, 2006 Jkt 049006 PO 00000 Frm 00046 Fmt 6659 Sfmt 6601 E:\HR\OC\HR592.XXX HR592

sroberts on PROD1PC70 with HEARING
47 

vidual may, with the approval of the Secretary, be permitted to 

complete such agreement. 

* * * * * * * 

(e)(1) Subject to paragraph (2) of this subsection, the Secretary 

may, notwithstanding any other provision of law, enter into an 

agreement with an individual under this section, or a modification 

of such an agreement, whereby the individual agrees to perform 

øservices of the kind described in clauses (A) through (E) of subsection (a)(1) of this section¿ a qualifying work-study activity described in subsection (a)(4) and agrees that the Secretary shall, in 

lieu of paying the work-study allowance payable for such services, 

as provided in subsection (a) of this section, deduct the amount of 

the allowance from the amount which the individual has been determined to be indebted to the United States by virtue of such individual’s participation in a benefits program under this chapter, 

chapter 30, 31, 32, 35, or 36 of this title, or øchapter 106¿ chapter 

1606 or 1607 of title 10 (other than an indebtedness arising from 

a refund penalty imposed under section 2135 of such title). 

* * * * * * * 

CHAPTER 35—SURVIVORS’ AND DEPENDENTS’

EDUCATIONAL ASSISTANCE 

* * * * * * * 

SUBCHAPTER II—ELIGIBILITY AND ENTITLEMENT 

* * * * * * * 

§ 3511. Duration of educational assistance 

(a)(1) * * * 

* * * * * * * 

(2)(A) * * * 

(B) The payment of the educational assistance allowance referred 

to in subparagraph (A) of this paragraph is the payment of such 

an allowance to an individual for pursuit of a course or courses 

under this chapter if the Secretary finds that the individual—

(i) had to discontinue such course pursuit as a result of being 

ordered to serve on active duty under section 688, 12301(a), 

12301(d), 12301(g), 12302, or 12304 of title 10 or of being involuntarily ordered to full-time National Guard duty under section 

502(f) of title 32; and 

* * * * * * * 

CHAPTER 36—ADMINISTRATION OF EDUCATIONAL 

BENEFITS 

* * * * * * * 

SUBCHAPTER I—STATE APPROVING AGENCIES 

* * * * * * * 


sroberts on PROD1PC70 with HEARING
48 

§ 3676. Approval of nonaccredited courses 

(a) * * * 

* * * * * * * 

(c) The appropriate State approving agency may approve the application of such institution when the institution and its non-accredited courses are found upon investigation to have met the following criteria: 

(1) * * * 

* * * * * * * 

(13) The institution has and maintains a policy for the refund of the unused portion of tuition, fees, and other charges 

in the event the eligible person fails to enter the course or 

withdraws or is discontinued therefrom at any time øprior to 

completion and such policy must provide that the amount 

charged to the eligible person for tuition, fees, and other 

charges for a portion of the course shall not exceed the approximate pro rata portion of the total charges for tuition, fees, and 

other charges that the length of the completed portion of the 

course bears to its total length.¿ before completion and—

(A) in the case of an institution other than (i) a Federal, 

State, or local Government institution or (ii) an institution 

described in subparagraph (B), such policy provides that 

the amount charged to the eligible person for tuition, fees, 

and other charges for a portion of the course shall not exceed the approximate pro rata portion of the total charges 

for tuition, fees, and other charges that the length of the 

completed portion of the course bears to its total length; 

and 

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

public educational institution, the institution has and 

maintains a refund policy regarding the unused portion of 

tuition, fees, and other charges that is substantially the 

same as the refund policy followed by accredited public 

educational institutions located within the same State as 

such institution. 

* * * * * * * 

CHAPTER 41—JOB COUNSELING, TRAINING, AND 

PLACEMENT SERVICE FOR VETERANS 

Sec. 

4100. Findings. 

* * * * * * * 

4114. Demonstration project on credentialing and licensure of veterans. 

* * * * * * * 

§ 4102A. Assistant Secretary of Labor for Veterans’ Employment and Training; program functions; Regional 

Administrators 

(a) * * * 

* * * * * * * 

(c) CONDITIONS FOR RECEIPT OF FUNDS.—(1) * * * 


sroberts on PROD1PC70 with HEARING
49 

(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—

(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; øand¿ 

(III) the program of performance incentive awards described in section 4112 of this title in the State for the program yearø.¿; 

(IV) the professional qualifications used by the State for 

determining the eligibility for employment, and eligibility 

for continued employment, of State employees who are designated as disabled veterans’ outreach program specialists 

and local veterans’ employment representatives under this 

chapter; and 

(V) the training required or provided by the State for 

State employees who are designated as disabled veterans’

outreach program specialists and local veterans’ employment representatives under this chapter. 

(ii) The veteran population to be served. 

(iii) For each employee of the State who is designated as disabled veterans’ outreach program specialist or a local veterans’

employment representative under this chapter—

(I) the date on which the employee is so designated; and 

(II) whether the employee has satisfactorily completed 

training provided by the National Veterans’ Employment 

and Training Services Institute. 

ø(iii)¿ (iv) 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) * * * 

ø(ii) The Secretary shall phase in over the three fiscal-year period that begins on October 1, 2003, 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.¿ 

ø(iii)¿ (ii) In carrying out this paragraph, the Secretary may establish minimum funding levels and hold-harmless criteria for 

States. 

* * * * * * * 

(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 (29 

U.S.C. 2801 et seq.) and the Wagner-Peyser Act (29 U.S.C. 49 et 

seq.). 

* * * * * * * 


sroberts on PROD1PC70 with HEARING
50 

(8) As a condition of a grant or contract under which funds are 

made available to a State in order to carry out section 4103A or 

4104 of this title, the Secretary shall require the State to provide a 

licensing and certification program under which a veteran may receive credit toward a license or certification based on training or experience the veteran acquired while serving in the Armed Forces. 

(9)(A) As a condition of a grant or contract under which funds are 

made available to a State in order to carry out section 4103A or 

4104 of this title, the Secretary shall require the State to require 

each employee hired by the State who is designated as disabled veterans’ outreach program specialist or a local veterans’ employment 

representative under this chapter to satisfactorily complete training 

provided by the National Veterans’ Employment and Training Services Institute during the three-year period that begins on the date 

on which the employee is so designated. 

(B) For any employee described in subparagraph (A) who does not 

complete such training during such period, the Secretary may reduce by an appropriate amount the amount made available to the 

State employing that employee. 

* * * * * * * 

(f) øESTABLISHMENT OF PERFORMANCE STANDARDS AND OUT- COMES MEASURES.—¿ PERFORMANCE STANDARDS AND OUTCOMES

MEASURES.—(1) The Assistant Secretary of Labor for Veterans’

Employment and Training shall øestablish 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). 

* * * * * * * 

(h) DEMONSTRATION PROJECT ON CONTRACTING FOR PLACEMENT

OF VETERANS IN HIGH-UNEMPLOYMENT AREAS.—(1) From unobligated funds made available for a fiscal year to carry out sections 

4103A and 4104 of this title, the Secretary of Labor, acting through 

the Assistant Secretary of Labor for Veterans’ Employment and 

Training, may enter into a contract with a nongovernmental entity 

to carry out job placement services for veterans during that fiscal 

year in a locality where the unemployment rate for veterans exceeds 

the national average unemployment rate. 

(2) In entering into a contract under paragraph (1), the Secretary 

of Labor may use procedures other than competitive procedures. 

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

of Labor shall give priority to a small business concern owned and 

controlled by veterans that is listed in any small business database 

maintained by the Secretary of Veterans Affairs. 

(4) The total amount obligated under contracts entered into under 

paragraph (1) for any fiscal year may not exceed $3,000,000. 

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

shall terminate on the date that is five years after the date of the 

enactment of the Veterans Small Business and Memorial Affairs Act 

of 2006. 


sroberts on PROD1PC70 with HEARING
51 

§ 4103A. Disabled veterans’ outreach program 

(a) * * * 

* * * * * * * 

(c) PART-TIME EMPLOYEES.—A part-time disabled veterans’ outreach program specialist shall perform the functions of a disabled 

veterans’ outreach program specialist under this section on a halftime basis. 

§ 4104. Local veterans’ employment representatives 

(a) * * * 

* * * * * * * 

(e) PART-TIME EMPLOYEES.—A part-time local veterans’ employment representative shall perform the functions of a local veterans’

employment representative under this section on a half-time basis. 

* * * * * * * 

§ 4107. Administrative controls; annual report 

(a) * * * 

* * * * * * * 

(c) 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 success during the preceding 

program year of the Department of Labor and its affiliated State 

employment service agencies in carrying out the provisions of this 

chapter and programs for the provision of employment and training 

services to meet the needs of eligible veterans and eligible persons. 

The report shall include—

(1) * * * 

* * * * * * * 

(3) the number of veterans, disabled veterans, and special disabled veterans who requested training from the public employment service system; 

(4) the total number of eligible veterans participating in each 

program for the provision of employment and training services 

designed to meet the needs of eligible veterans and eligible persons and the number of such veterans as a percentage of the 

total number of participants in each such program; 

(5) for each State, the percentage of persons seeking employment in the State who are veterans; 

(6) for each State, the number of veterans referred to a small 

business development center in that State and the number of 

veterans referred to the National Veterans Business Development Corporation established under section 33 of the Small 

Business Act (15 U.S.C. 657c); 

(7) the total number of such veterans and disabled veterans 

who remain employed for at least 90 days in such jobs; 

(8) the number of such veterans and disabled veterans who 

remain employed for at least 180 days in such jobs; 

(9) the average starting wage or salary paid to such veterans 

and disabled veterans and, if applicable, the average wage or 

salary paid to such veterans and disabled veterans as of the 

180th day of employment; 


sroberts on PROD1PC70 with HEARING
52 

ø(3)¿ (10) any determination made by the Secretary during 

the preceding fiscal year under section 4106 of this title or subsection (a)(2) of this section and a statement of the reasons for 

such determination; 

ø(4)¿ (11) a report on activities carried out during the preceding program year under section 4212(d) of this title; 

ø(5)¿ (12) a report on the operation during the preceding program year of programs for the provision of employment and 

training services designed to meet the needs of eligible veterans and eligible persons, including an evaluation of the effectiveness of such programs during such program year in meeting the requirements of section 4102A(b) of this title, the efficiency with which services were provided through such programs during such year, and such recommendations for further 

legislative action relating to veterans’ employment and training as the Secretary considers appropriate; and 

ø(6)¿ (13) 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. 

* * * * * * * 

(d) The Secretary shall maintain guidelines for use by States in 

establishing the professional qualifications required under subclause (IV) of section 4102A(c)(2)(A)(i) of this title for determining 

the eligibility for employment, and eligibility for the continued employment, of State employees who are designated as disabled veterans’ outreach program specialists and local veterans’ employment 

representatives under this chapter. 

* * * * * * * 

§ 4110. Advisory Committee on Veterans Employment, 

Training, and Employer Outreach 

(a) * * * 

* * * * * * * 

(c)(1) The Secretary of Labor shall appoint at least 12, but no 

more than 15, individuals to serve as members of the advisory committee as follows: 

(A) øSix¿ Seven individuals, one each from among representatives nominated by each of the following organizations: 

(i) * * * 

* * * * * * * 

(vii) The National Governors Association. 

* * * * * * * 

§ 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—


sroberts on PROD1PC70 with HEARING
53 

(A) * * * 

(B) recognize eligible employees and employment service offices for excellence in the provision of such services or for having made demonstrable improvements in the provision of such 

services. 

* * * * * * * 

(c) øRELATIONSHIP OF AWARD TO GRANT PROGRAM AND EMPLOYEE

COMPENSATION.—¿ ADMINISTRATION AND USE OF AWARDS.—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; øand¿ 

(2) øis¿ in the case of such an award made to an eligible employee, shall be in addition to the regular pay of the 

recipientø.¿; and 

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

service office, may be used by that employment service office for 

any purpose. 

* * * * * * * 

§ 4114. Demonstration project on credentialing and licensure 

of veterans 

(a) ESTABLISHMENT AND PURPOSE OF DEMONSTRATION

PROJECT.—The Assistant Secretary for Veterans’ Employment and 

Training shall carry out a demonstration project on credentialing in 

accordance with this section for the purpose of facilitating the seamless transition of members of the Armed Forces from service on active duty to civilian employment. 

(b) CREDENTIALING AND LICENSURE OF VETERANS.—(1) The Assistant Secretary shall select not less than ten military occupational 

specialties for purposes of the demonstration project. Each such specialty selected by the Assistant Secretary shall require a skill or set 

of skills that is required for civilian employment in an industry 

with high growth or high worker demand. 

(2) The Assistant Secretary shall consult with appropriate Federal, State, and industry officials to identify requirements for credentials, certifications, and licenses that require a skill or set of 

skills required by a military occupational specialty identified under 

paragraph (1). 

(3) The Assistant Secretary shall analyze the requirements identified under paragraph (2) to determine which requirements may be 

satisfied by the skills, training, or experience acquired by members 

of the Armed Forces with the military occupational specialties selected under paragraph (1). 

(c) ELIMINATION OF BARRIERS TO CREDENTIALING AND LICENSURE.—The Assistant Secretary shall cooperate with appropriate 

Federal, State, and industry officials to reduce or eliminate any barriers to providing a credential, certification, or license to a veteran 

who acquired any skill, training, or experience while serving as a 

member of the Armed Forces with a military occupational specialty 

selected under subsection (b)(1) that satisfies the Federal and State 

requirements for the credential, certification, or license. 


sroberts on PROD1PC70 with HEARING
54 

(d) TASK FORCE.—The Assistant Secretary may establish a task 

force of individuals with appropriate expertise to provide assistance 

to the Assistant Secretary in carrying out this section. 

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

Secretary shall consult with the Secretary of Defense, the Secretary 

of Veterans Affairs, appropriate Federal and State officials, privatesector employers, labor organizations, and industry trade associations. 

(f) CONTRACT AUTHORITY.—For purposes of carrying out any part 

of the demonstration project under this section, the Assistant Secretary may enter into a contract with a public or private entity with 

appropriate expertise. 

(g) PERIOD OF PROJECT.—The Assistant Secretary shall carry out 

the demonstration project under this section during the period beginning on the date that is 60 days after the date of the enactment 

of this section and ending on September 30, 2009. 

(h) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to 

be appropriated to the Assistant Secretary to carry out this section 

$1,000,000 for each of fiscal years 2007 through 2009. 

* * * * * * * 

PART VI—ACQUISITION AND DISPOSITION OF 

PROPERTY 

* * * * * * * 

CHAPTER 81—ACQUISITION AND OPERATION OF HOSPITAL AND DOMICILIARY FACILITIES; PROCUREMENT 

AND SUPPLY; ENHANCED-USE LEASES OF REAL PROPERTY 

SUBCHAPTER I—ACQUISITION AND OPERATION OF MEDICAL FACILITIES 

Sec. 

8101. Definitions. 

* * * * * * * 

SUBCHAPTER II—PROCUREMENT AND SUPPLY 

8121. Revolving supply fund. 

* * * * * * * 

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

contracting goals and preferences. 

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

veterans. 

* * * * * * * 

SUBCHAPTER II—PROCUREMENT AND SUPPLY 

* * * * * * * 

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

(a) CONTRACTING GOALS.—(1) In order to increase contracting opportunities for small business concerns owned and controlled by veterans and small business concerns owned and controlled by veterans with service-connected disabilities, the Secretary shall—

(A) establish a goal for each fiscal year for participation in 

Department contracts (including subcontracts) by small busiVerDate Aug 31 2005 20:30 Jul 26, 2006 Jkt 049006 PO 00000 Frm 00054 Fmt 6659 Sfmt 6603 E:\HR\OC\HR592.XXX HR592

sroberts on PROD1PC70 with HEARING
55 

ness concerns owned and controlled by veterans who are not 

veterans with service-connected disabilities in accordance with 

paragraph (2); and 

(B) establish a goal for each fiscal year for participation in 

Department contracts (including subcontracts) by small business concerns owned and controlled by veterans with serviceconnected disabilities in accordance with paragraph (3). 

(2) The goal for a fiscal year for participation under paragraph 

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

(3) The goal for a fiscal year for participation under paragraph 

(1)(B) shall be not less than the Government-wide goal for that fiscal year for participation by small business concerns owned and 

controlled by veterans with service-connected disabilities under section 15(g)(1) of the Small Business Act (15 U.S.C. 644(g)(1)). 

(4) The annual performance review of the senior official of each 

Administration of the Department and each Assistant Secretary of 

the Department with procurement authority shall include an assessment of whether or not that official or Assistant Secretary met the 

contracting goals established pursuant to this subsection during the 

year for which the performance review is conducted with respect to 

contracts awarded during that year for which that official or Assistant Secretary had responsibility. If the official or Assistant Secretary is found not to have met such contracting goals, the official 

or Assistant Secretary shall not receive an award known as a performance award or an award known as a presidential rank award 

for that year. 

(5) In the case of a subcontract of a Department contract that is 

counted for purposes of meeting a goal established pursuant to this 

section, the Secretary shall conduct a review of the contract and 

subcontract to verify that the subcontract was actually awarded to 

a business concern that may be counted for purposes of meeting that 

goal. 

(6) The Secretary shall maintain a list based on the reviews conducted under paragraph (5) that contains the name of the contractor associated with each contract reviewed under that paragraph and whether each subcontract awarded by the contractor that 

is counted for purposes of meeting a goal established pursuant to 

this section was actually awarded to and performed by a business 

concern that may be counted for purposes of meeting that goal. The 

Secretary shall make such list publicly available. 

(b) USE OF NONCOMPETITIVE PROCEDURES FOR CERTAIN SMALL

CONTRACTS.—For purposes of meeting the goals under subsection 

(a), and in accordance with this section, in entering into a contract 

with a small business concern owned and controlled by veterans for 

an amount less than the simplified acquisition threshold (as defined 

in section 4 of the Office of Federal Procurement Policy Act (41 

U.S.C. 403)), a contracting officer of the Department may use procedures other than competitive procedures. 

(c) SOLE SOURCE CONTRACTS FOR CONTRACTS ABOVE SIMPLIFIED

ACQUISITION THRESHOLD.—For purposes of meeting the goals under 

subsection (a), and in accordance with this section, a contracting officer of the Department may award a contract to a small business 

concern owned and controlled by veterans using procedures other 

than competitive procedures if—


sroberts on PROD1PC70 with HEARING
56 

(1) such concern is determined to be a responsible source with 

respect to performance of such contract opportunity; 

(2) the anticipated award price of the contract (including options) will exceed the simplified acquisition threshold (as defined in section 4 of the Office of Federal Procurement Policy 

Act (41 U.S.C. 403)) but will not exceed $5,000,000; and 

(3) in the estimation of the contracting officer, the contract 

award can be made at a fair and reasonable price that offers 

best value to the United States. 

(d) USE OF RESTRICTED COMPETITION.—Except as provided in 

subsections (b) and (c), for purposes of meeting the goals under subsection (a), and in accordance with this section, a contracting officer 

of the Department shall award contracts on the basis of competition 

restricted to small business concerns owned and controlled by veterans if the contracting officer has a reasonable expectation that two 

or more small business concerns owned and controlled by veterans 

will submit offers and that the award can be made at a fair and 

reasonable price that offers best value to the United States. 

(e) ELIGIBILITY OF SMALL BUSINESS CONCERNS.—A small business concern may be awarded a contract under this section only if 

the small business concern and the veteran owner of the small business concern are listed in the database of veteran-owned businesses 

maintained by the Secretary under subsection (f). 

(f) DATABASE OF VETERAN-OWNED BUSINESSES.—(1) Subject to 

paragraphs (2) through (6), the Secretary shall maintain a database 

of small business concerns owned and controlled by veterans and 

the veteran owners of such business concerns. 

(2) To be eligible for inclusion in the database, such a veteran 

shall submit to the Secretary such information as the Secretary may 

require with respect to the small business concern or the veteran. 

(3) Information maintained in the database shall be submitted on 

a voluntary basis by such veterans. 

(4) In maintaining the database, the Secretary shall carry out at 

least the following two verification functions: 

(A) Verification that each small business concern listed in the 

database is owned and controlled by veterans. 

(B) In the case of a veteran who indicates a service-connected 

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

(5) The Secretary shall make the database available to all Federal 

departments and agencies and notify each such department and 

agency of the availability of the database. 

(6) If the Secretary determines that the public dissemination of 

certain types of information maintained in the database is inappropriate, the Secretary shall take such steps as are necessary to maintain such types of information in a secure and confidential manner. 

(g) ENFORCEMENT PENALTIES FOR MISREPRESENTATION.—Any 

small business concern that is determined by the Secretary to have 

misrepresented the status of that concern as a small business concern owned and controlled by veterans or as a small business concern owned and controlled by service-disabled veterans for purposes 

of this subsection shall be debarred from contracting with the Department for a period of five years. 

(h) TREATMENT OF BUSINESSES AFTER DEATH OF VETERANOWNER.—(1) If the death of a veteran causes a small business conVerDate Aug 31 2005 20:30 Jul 26, 2006 Jkt 049006 PO 00000 Frm 00056 Fmt 6659 Sfmt 6603 E:\HR\OC\HR592.XXX HR592

sroberts on PROD1PC70 with HEARING
57 

cern to be less than 51 percent owned by one or more veterans, the 

surviving spouse of such veteran who acquires ownership rights in 

such small business concern shall, for the period described in paragraph (2), be treated as if the surviving spouse were that veteran for 

the purpose of maintaining the status of the small business concern 

as a small business concern owned and controlled by veterans. 

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

on the date on which the veteran dies and ending on the earliest of 

the following dates: 

(A) The date on which the surviving spouse remarries. 

(B) The date on which the surviving spouse relinquishes an 

ownership interest in the small business concern. 

(C) The date that is ten years after the date of the veteran’s 

death. 

(3) The death of a veteran-owner of a small business concern or 

a surviving spouse of such a veteran-owner who acquires ownership 

rights in such concern shall not be cause for termination of a contract awarded under this section that is in effect at the time of 

death of such owner or surviving spouse. 

(i) CHANGE IN OWNERSHIP OR CONTROL.—(1) Except as provided 

in subsection (h), if a small business concern that is awarded a contract under this section undergoes a change in management or control during the period for which the contract is in effect such that 

it is no longer a small business concern owned and controlled by 

veterans, the Secretary shall end the contract on the date on which 

the performance of the term of the contract is complete. 

(2) Such a contract that contains an option or options to extend 

the contract may be extended for a total of not more than 1 year 

pursuant to any such option. 

(j) PRIORITY FOR CONTRACTING PREFERENCES.—Preferences for 

awarding contracts to small business concerns shall be applied in 

the following order of priority: 

(1) Contracts awarded pursuant to subsection (b), (c), or (d) 

to small business concerns owned and controlled by veterans 

with service-connected disabilities. 

(2) Contracts awarded pursuant to subsection (b), (c), or (d) 

to small business concerns owned and controlled by veterans 

that are not covered by subparagraph (A). 

(3) Contracts awarded pursuant to— (A) section 8(a) of the Small Business Act (15 U.S.C. 

637(a)); or 

(B) section 31 of such Act (15 U.S.C. 657a). 

(4) Contracts awarded pursuant to any other small business contracting preference. 

(k) QUARTERLY REPORTS.—Not later than 60 days after the last 

day of a fiscal quarter, the Secretary shall submit to Congress a report on small business contracting during that fiscal quarter, which 

shall include the following: 

(1) The percentage of the total amount of all contracts awarded by the Department during that fiscal quarter that were 

awarded to small business concerns owned and controlled by 

veterans. 

(2) The percentage of the total amount of all such contracts 

awarded to small business concerns owned and controlled by 

veterans with service-connected disabilities. 


sroberts on PROD1PC70 with HEARING
58 

(3) The percentage of the total amount of all contracts awarded by each Administration of the Department during that fiscal 

quarter that were awarded to small business concerns owned 

and controlled by veterans. 

(4) The percentage of the total amount of all contracts awarded by each such Administration during that fiscal quarter that 

were awarded to small business concerns owned and controlled 

by veterans. 

(l) DEFINITIONS.—In this section: 

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

that term under section 3 of the Small Business Act (15 U.S.C. 

632). 

(2) The term ‘‘small business concern owned and controlled by 

veterans’’ means a small business concern— (A)(i) not less than 51 percent of which is owned by one 

or more veterans or, in the case of a publicly owned business, not less than 51 percent of the stock of which is owned 

by one or more veterans; and 

(ii) the management and daily business operations of 

which are controlled by one or more veterans; or 

(B) not less than 51 percent of which is owned by one or 

more veterans with service-connected disabilities that are 

permanent and total who are unable to manage the daily 

business operations of such concern or, in the case of a publicly owned business, not less than 51 percent of the stock 

of which is owned by one or more such veterans. 

§ 8128. Contracting priority for small business concerns 

owned and controlled by veterans 

(a) IN GENERAL.—In procuring goods and services pursuant to a 

contracting preference under this title or any other provision of law, 

the Secretary shall give priority to a small business concern owned 

and controlled by veterans, if such business concern also meets the 

requirements of that contracting preference. 

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

controlled by veterans’’ means a small business concern that is on 

the list maintained by the Secretary under section 8127(f) of this 

title. 

* * * * * * * 

SECTION 502 OF THE VETERANS EDUCATION AND 

BENEFITS EXPANSION ACT OF 2001 

SEC. 502. GOVERNMENT MARKERS FOR MARKED GRAVES AT PRIVATE 

CEMETERIES. 

(a) * * * 

* * * * * * * 

(d) EFFECTIVE DATE.—The amendments made by subsections (a) 

and (b) shall apply with respect to markers for the graves of individuals dying on or after øSeptember 11, 2001¿ November 1, 1990. 

Æ 


sroberts on PROD1PC70 with HEARING