PUBLIC LAW 112–56—NOV. 21, 2011 125 STAT. 711 

Public Law 112–56 

112th Congress 

An Act 

To amend the Internal Revenue Code of 1986 to repeal the imposition of 3 percent 

withholding on certain payments made to vendors by government entities, to 

modify the calculation of modified adjusted gross income for purposes of determining eligibility for certain healthcare-related programs, and for other purposes. 

Be it enacted by the Senate and House of Representatives of 

the United States of America in Congress assembled, 

SECTION 1. TABLE OF CONTENTS. 

The table of contents for this Act is as follows: 

Sec. 1. Table of Contents. 

TITLE I—THREE PERCENT WITHHOLDING REPEAL AND JOB CREATION 

ACT 

Sec. 101. Short title. 

Sec. 102. Repeal of imposition of 3 percent withholding on certain payments made 

to vendors by government entities. 

TITLE II—VOW TO HIRE HEROES 

Sec. 201. Short title. 

Subtitle A—Retraining Veterans 

Sec. 211. Veterans retraining assistance program. 

Subtitle B—Improving the Transition Assistance Program 

Sec. 221. Mandatory participation of members of the Armed Forces in the Transition Assistance Program of Department of Defense. Sec. 222. Individualized assessment for members of the Armed Forces under transition assistance on equivalence between skills developed in military occupational specialties and qualifications required for civilian employment 

with the private sector. Sec. 223. Transition Assistance Program contracting. 

Sec. 224. Contracts with private entities to assist in carrying out Transition Assistance Program of Department of Defense. Sec. 225. Improved access to apprenticeship programs for members of the Armed 

Forces who are being separated from active duty or retired. Sec. 226. Comptroller General review. 

Subtitle C—Improving the Transition of Veterans to Civilian Employment 

Sec. 231. Two-year extension of authority of Secretary of Veterans Affairs to provide rehabilitation and vocational benefits to members of the Armed 

Forces with severe injuries or illnesses. Sec. 232. Expansion of authority of Secretary of Veterans Affairs to pay employers 

for providing on-job training to veterans who have not been rehabilitated to point of employability. Sec. 233. Training and rehabilitation for veterans with service-connected disabilities who have exhausted rights to unemployment benefits under State 

law. 

Sec. 234. Collaborative veterans’ training, mentoring, and placement program. 

Sec. 235. Appointment of honorably discharged members and other employment assistance. 

Sec. 236. Department of Defense pilot program on work experience for members of 

the Armed Forces on terminal leave. 

Nov. 21, 2011 

[H.R. 674] 


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125 STAT. 712 PUBLIC LAW 112–56—NOV. 21, 2011 

Sec. 237. Enhancement of demonstration program on credentialing and licensing of 

veterans. 

Sec. 238. Inclusion of performance measures in annual report on veteran job counseling, training, and placement programs of the Department of Labor. 

Sec. 239. Clarification of priority of service for veterans in Department of Labor job 

training programs. 

Sec. 240. Evaluation of individuals receiving training at the National Veterans’ 

Employment and Training Services Institute. 

Sec. 241. Requirements for full-time disabled veterans’ outreach program specialists and local veterans’ employment representatives. 

Subtitle D—Improvements to Uniformed Services Employment and Reemployment 

Rights 

Sec. 251. Clarification of benefits of employment covered under USERRA. 

Subtitle E—Other Matters 

Sec. 261. Returning heroes and wounded warriors work opportunity tax credits. 

Sec. 262. Extension of reduced pension for certain veterans covered by Medicaid 

plans for services furnished by nursing facilities. 

Sec. 263. Reimbursement rate for ambulance services. 

Sec. 264. Extension of authority for Secretary of Veterans Affairs to obtain information from Secretary of Treasury and Commissioner of Social Security for 

income verification purposes. 

Sec. 265. Modification of loan guaranty fee for certain subsequent loans. 

TITLE III—OTHER PROVISIONS RELATING TO FEDERAL VENDORS 

Sec. 301. One hundred percent levy for payments to Federal vendors relating to 

property. 

Sec. 302. Study and report on reducing the amount of the tax gap owed by Federal 

contractors. 

TITLE IV—MODIFICATION OF CALCULATION OF MODIFIED ADJUSTED 

GROSS INCOME FOR DETERMINING CERTAIN HEALTHCARE PROGRAM 

ELIGIBILITY 

Sec. 401. Modification of calculation of modified adjusted gross income for determining certain healthcare program eligibility. 

TITLE V—BUDGETARY EFFECTS 

Sec. 501. Statutory Pay-As-You-Go Act of 2010. 

TITLE I—THREE PERCENT WITHHOLDING REPEAL AND JOB CREATION ACT 

SEC. 101. SHORT TITLE. 

This title may be cited as the ‘‘3% Withholding Repeal and 

Job Creation Act’’. 

SEC. 102. REPEAL OF IMPOSITION OF 3 PERCENT WITHHOLDING ON 

CERTAIN PAYMENTS MADE TO VENDORS BY GOVERNMENT 

ENTITIES. 

(a) IN GENERAL.—Section 3402 of the Internal Revenue Code 

of 1986 is amended by striking subsection (t). 

(b) EFFECTIVE DATE.—The amendment made by this section 

shall apply to payments made after December 31, 2011. 

TITLE II—VOW TO HIRE HEROES 

SEC. 201. SHORT TITLE. 

This title may be cited as the ‘‘VOW to Hire Heroes Act of 

2011’’. 

38 USC 101 note. 

VOW to Hire 

Heroes Act of 

2011. 

26 USC 3402 

note. 

26 USC 3402. 

26 USC 1 note. 

3% Withholding 

Repeal and Job 

Creation Act. 


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PUBLIC LAW 112–56—NOV. 21, 2011 125 STAT. 713 

Subtitle A—Retraining Veterans 

SEC. 211. VETERANS RETRAINING ASSISTANCE PROGRAM. 

(a) PROGRAM AUTHORIZED.— 

(1) IN GENERAL.—Not later than July 1, 2012, the Secretary 

of Veterans Affairs shall, in collaboration with the Secretary 

of Labor, establish and commence a program of retraining 

assistance for eligible veterans. 

(2) NUMBER OF ELIGIBLE VETERANS.—The number of unique 

eligible veterans who participate in the program established 

under paragraph (1) may not exceed— 

(A) 45,000 during fiscal year 2012; and 

(B) 54,000 during the period beginning October 1, 2012, 

and ending March 31, 2014. 

(b) RETRAINING ASSISTANCE.—Except as provided by subsection 

(k), each veteran who participates in the program established under 

subsection (a)(1) shall be entitled to up to 12 months of retraining 

assistance provided by the Secretary of Veterans Affairs. Such 

retraining assistance may only be used by the veteran to pursue 

a program of education (as such term is defined in section 3452(b) 

of title 38, United States Code) for training, on a full-time basis, 

that— 

(1) is approved under chapter 36 of such title; 

(2) is offered by a community college or technical school; 

(3) leads to an associate degree or a certificate (or other 

similar evidence of the completion of the program of education 

or training); 

(4) is designed to provide training for a high-demand 

occupation, as determined by the Commissioner of Labor Statistics; and 

(5) begins on or after July 1, 2012. 

(c) MONTHLY CERTIFICATION.—Each veteran who participates 

in the program established under subsection (a)(1) shall certify 

to the Secretary of Veterans Affairs the enrollment of the veteran 

in a program of education described in subsection (b) for each 

month in which the veteran participates in the program. 

(d) AMOUNT OF ASSISTANCE.—The monthly amount of the 

retraining assistance payable under this section is the amount 

in effect under section 3015(a)(1) of title 38, United States Code. 

(e) ELIGIBILITY.— 

(1) IN GENERAL.—For purposes of this section, an eligible 

veteran is a veteran who— 

(A) as of the date of the submittal of the application 

for assistance under this section, is at least 35 years of 

age but not more than 60 years of age; 

(B) was last discharged from active duty service in 

the Armed Forces under conditions other than dishonorable; 

(C) as of the date of the submittal of the application 

for assistance under this section, is unemployed; 

(D) as of the date of the submittal of the application 

for assistance under this section, is not eligible to receive 

educational assistance under chapter 30, 31, 32, 33, or 

35 of title 38, United States Code, or chapter 1606 or 

1607 of title 10, United States Code; 

Time periods. 

Deadline. 

38 USC 4100 

note. 


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125 STAT. 714 PUBLIC LAW 112–56—NOV. 21, 2011 

(E) is not in receipt of compensation for a serviceconnected disability rated totally disabling by reason of 

unemployability; 

(F) was not and is not enrolled in any Federal or 

State job training program at any time during the 180- 

day period ending on the date of the submittal of the 

application for assistance under this section; and 

(G) by not later than October 1, 2013, submits to 

the Secretary of Labor an application for assistance under 

this section containing such information and assurances 

as that Secretary may require. 

(2) DETERMINATION OF ELIGIBILITY.— (A) DETERMINATION BY SECRETARY OF LABOR.— (i) IN GENERAL.—For each application for assistance under this section received by the Secretary of 

Labor from an applicant, the Secretary of Labor shall 

determine whether the applicant is eligible for such 

assistance under subparagraphs (A), (C), (F), and (G) 

of paragraph (1). 

(ii) REFERRAL TO SECRETARY OF VETERANS

AFFAIRS.—If the Secretary of Labor determines under 

clause (i) that an applicant is eligible for assistance 

under this section, the Secretary of Labor shall forward 

the application of such applicant to the Secretary of 

Veterans Affairs in accordance with the terms of the 

agreement required by subsection (h). 

(B) DETERMINATION BY SECRETARY OF VETERANS

AFFAIRS.—For each application relating to an applicant 

received by the Secretary of Veterans Affairs under 

subparagraph (A)(ii), the Secretary of Veterans Affairs shall 

determine under subparagraphs (B), (D), and (E) of paragraph (1) whether such applicant is eligible for assistance 

under this section. 

(f) EMPLOYMENT ASSISTANCE.—For each veteran who participates in the program established under subsection (a)(1), the Secretary of Labor shall contact such veteran not later than 30 days 

after the date on which the veteran completes, or terminates participation in, such program to facilitate employment of such veteran 

and availability or provision of employment placement services 

to such veteran. 

(g) CHARGING OF ASSISTANCE AGAINST OTHER ENTITLEMENT.— 

Assistance provided under this section shall be counted against 

the aggregate period for which section 3695 of title 38, United 

States Code, limits the individual’s receipt of educational assistance 

under laws administered by the Secretary of Veterans Affairs. 

(h) JOINT AGREEMENT.— 

(1) IN GENERAL.—The Secretary of Veterans Affairs and 

the Secretary of Labor shall enter into an agreement to carry 

out this section. 

(2) APPEALS PROCESS.—The agreement required by paragraph (1) shall include establishment of a process for resolving 

disputes relating to and appeals of decisions of the Secretaries 

under subsection (e)(2). 

(i) REPORT.— 

(1) IN GENERAL.—Not later than July 1, 2014, the Secretary 

of Veterans Affairs shall, in collaboration with the Secretary 

of Labor, submit to the appropriate committees of Congress 

Deadline. 

Deadline. 

Time period. 


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PUBLIC LAW 112–56—NOV. 21, 2011 125 STAT. 715 

a report on the retraining assistance provided under this section. 

(2) ELEMENTS.—The report required by paragraph (1) shall 

include the following: 

(A) The total number of— 

(i) eligible veterans who participated; and 

(ii) associates degrees or certificates awarded (or 

other similar evidence of the completion of the program 

of education or training earned). 

(B) Data related to the employment status of eligible 

veterans who participated. 

(j) FUNDING.—Payments under this section shall be made from 

amounts appropriated to or otherwise made available to the Department of Veterans Affairs for the payment of readjustment benefits. 

Not more than $2,000,000 shall be made available from such 

amounts for information technology expenses (not including personnel costs) associated with the administration of the program 

established under subsection (a)(1). 

(k) TERMINATION OF AUTHORITY.—The authority to make payments under this section shall terminate on March 31, 2014. 

(l) APPROPRIATE COMMITTEES OF CONGRESS DEFINED.—In this 

section, the term ‘‘appropriate committees of Congress’’ means— 

(1) the Committee on Veterans’ Affairs and the Committee 

on Health, Education, Labor, and Pension of the Senate; and 

(2) the Committee on Veterans’ Affairs and the Committee 

on Education and the Workforce of the House of Representatives. 

Subtitle B—Improving the Transition 

Assistance Program 

SEC. 221. MANDATORY PARTICIPATION OF MEMBERS OF THE ARMED 

FORCES IN THE TRANSITION ASSISTANCE PROGRAM OF 

DEPARTMENT OF DEFENSE. 

(a) IN GENERAL.—Subsection (c) of section 1144 of title 10, 

United States Code, is amended to read as follows: 

‘‘(c) PARTICIPATION.—(1) Except as provided in paragraph (2), 

the Secretary of Defense and the Secretary of Homeland Security 

shall require the participation in the program carried out under 

this section of the members eligible for assistance under the program. 

‘‘(2) The Secretary of Defense and the Secretary of Homeland 

Security may, under regulations such Secretaries shall prescribe, 

waive the participation requirement of paragraph (1) with respect 

to— 

‘‘(A) such groups or classifications of members as the Secretaries determine, after consultation with the Secretary of Labor 

and the Secretary of Veterans Affairs, for whom participation 

is not and would not be of assistance to such members based 

on the Secretaries’ articulable justification that there is extraordinarily high reason to believe the exempted members are 

unlikely to face major readjustment, health care, employment, 

or other challenges associated with transition to civilian life; 

and 

Regulations. 

Waiver authority. 


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‘‘(B) individual members possessing specialized skills who, 

due to unavoidable circumstances, are needed to support a 

unit’s imminent deployment.’’. 

(b) REQUIRED USE OF EMPLOYMENT ASSISTANCE, JOB TRAINING

ASSISTANCE, AND OTHER TRANSITIONAL SERVICES IN PRESEPARATION

COUNSELING.—Section 1142(a)(2) of such title is amended by 

striking ‘‘may’’ and inserting ‘‘shall’’. 

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

(a) and (b) shall take effect on the date that is 1 year after the 

date of the enactment of this Act. 

SEC. 222. INDIVIDUALIZED ASSESSMENT FOR MEMBERS OF THE 

ARMED FORCES UNDER TRANSITION ASSISTANCE ON 

EQUIVALENCE BETWEEN SKILLS DEVELOPED IN MILITARY 

OCCUPATIONAL SPECIALTIES AND QUALIFICATIONS 

REQUIRED FOR CIVILIAN EMPLOYMENT WITH THE PRIVATE SECTOR. 

(a) STUDY ON EQUIVALENCE REQUIRED.— 

(1) IN GENERAL.—The Secretary of Labor shall, in consultation with the Secretary of Defense and the Secretary of Veterans Affairs, enter into a contract with a qualified organization 

to conduct a study to identify any equivalences between the 

skills developed by members of the Armed Forces through 

various military occupational specialties (MOS), successful 

completion of resident training courses, attaining various military ranks or rates, or other military experiences and the 

qualifications required for various positions of civilian employment in the private sector. 

(2) COOPERATION OF FEDERAL AGENCIES.—The departments 

and agencies of the Federal Government, including the Office 

of Personnel Management, the General Services Administration, the Government Accountability Office, the Department 

of Education, and other appropriate departments and agencies, 

shall cooperate with the contractor under paragraph (1) to 

conduct the study required under that paragraph. 

(3) REPORT.—Upon completion of the study conducted 

under paragraph (1), the contractor under that paragraph shall 

submit to the Secretary of Defense, the Secretary of Veterans 

Affairs, and the Secretary of Labor a report setting forth the 

results of the study. The report shall include such information 

as the Secretaries shall specify in the contract under paragraph 

(1) for purposes of this section. 

(4) TRANSMITTAL TO CONGRESS.—The Secretary of Labor 

shall transmit to the appropriate committees of Congress the 

report submitted under paragraph (3), together with such comments on the report as the Secretary considers appropriate. 

(5) APPROPRIATE COMMITTEES OF CONGRESS DEFINED.—In 

this subsection, the term ‘‘appropriate committees of Congress’’ 

means— 

(A) the Committee on Veterans’ Affairs, the Committee 

on Armed Services, and the Committee on Health, Education, Labor, and Pension of the Senate; and 

(B) the Committee on Veterans’ Affairs, the Committee 

on Armed Services, and the Committee on Education and 

the Workforce of the House of Representatives. 

Contracts. 

10 USC 1144 

note. 

10 USC 1142 

note. 


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PUBLIC LAW 112–56—NOV. 21, 2011 125 STAT. 717 

(b) PUBLICATION.—The secretaries described in subsection (a)(1) 

shall ensure that the equivalences identified under subsection (a)(1) 

are— 

(1) made publicly available on an Internet website; and 

(2) regularly updated to reflect the most recent findings 

of the secretaries with respect to such equivalences. 

(c) INDIVIDUALIZED ASSESSMENT OF CIVILIAN POSITIONS AVAILABLE THROUGH MILITARY EXPERIENCES.—The Secretary of Defense 

shall ensure that each member of the Armed Forces who is participating in the Transition Assistance Program (TAP) of the Department of Defense receives, as part of such member’s participation 

in that program, an individualized assessment of the various positions of civilian employment in the private sector for which such 

member may be qualified as a result of the skills developed by 

such member through various military occupational specialties 

(MOS), successful completion of resident training courses, attaining 

various military ranks or rates, or other military experiences. The 

assessment shall be performed using the results of the study conducted under subsection (a) and such other information as the 

Secretary of Defense, in consultation with the Secretary of Veterans 

Affairs and the Secretary of Labor, considers appropriate for that 

purpose. 

(d) FURTHER USE IN EMPLOYMENT-RELATED TRANSITION ASSISTANCE.— 

(1) TRANSMITTAL OF ASSESSMENT.—The Secretary of 

Defense shall make the individualized assessment provided 

a member under subsection (a) available electronically to the 

Secretary of Veterans Affairs and the Secretary of Labor. 

(2) USE IN ASSISTANCE.—The Secretary of Veterans Affairs 

and the Secretary of Labor may use an individualized assessment with respect to an individual under paragraph (1) for 

employment-related assistance in the transition from military 

service to civilian life provided the individual by such Secretary 

and to otherwise facilitate and enhance the transition of the 

individual from military service to civilian life. 

(e) EFFECTIVE DATE.—This section shall take effect on the 

date that is one year after the date of the enactment of this 

Act. 

SEC. 223. TRANSITION ASSISTANCE PROGRAM CONTRACTING. 

(a) TRANSITION ASSISTANCE PROGRAM CONTRACTING.— 

(1) IN GENERAL.—Section 4113 of title 38, United States 

Code, is amended to read as follows: 

‘‘§ 4113. Transition Assistance Program personnel 

‘‘(a) REQUIREMENT TO CONTRACT.—In accordance with section 

1144 of title 10, the Secretary shall enter into a contract with 

an appropriate private entity or entities to provide the functions 

described in subsection (b) at all locations where the program 

described in such section is carried out. 

‘‘(b) FUNCTIONS.—Contractors under subsection (a) shall provide 

to members of the Armed Forces who are being separated from 

active duty (and the spouses of such members) the services 

described in section 1144(a)(1) of title 10, including the following: 

‘‘(1) Counseling. 

Public 

information. 

Web posting. 


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125 STAT. 718 PUBLIC LAW 112–56—NOV. 21, 2011 

‘‘(2) Assistance in identifying employment and training 

opportunities and help in obtaining such employment and 

training. 

‘‘(3) Assessment of academic preparation for enrollment 

in an institution of higher learning or occupational training. 

‘‘(4) Other related information and services under such 

section. 

‘‘(5) Such other services as the Secretary considers appropriate.’’. 

(2) CLERICAL AMENDMENT.—The table of sections at the 

beginning of chapter 41 of title 38, United States Code, is 

amended by striking the item relating to section 4113 and 

inserting the following new item: 

‘‘4113. Transition Assistance Program personnel.’’. 

(b) DEADLINE FOR IMPLEMENTATION.—The Secretary of Labor 

shall enter into the contract required by section 4113 of title 38, 

United States Code, as added by subsection (a), not later than 

two years after the date of the enactment of this Act. 

SEC. 224. CONTRACTS WITH PRIVATE ENTITIES TO ASSIST IN CARRYING OUT TRANSITION ASSISTANCE PROGRAM OF 

DEPARTMENT OF DEFENSE. 

Section 1144(d) of title 10, United States Code, is amended— 

(1) in paragraph (5), by striking ‘‘public or private entities; 

and’’ and inserting ‘‘public entities;’’; 

(2) by redesignating paragraph (6) as paragraph (7); and 

(3) by inserting after paragraph (5), the following new 

paragraph (6): 

‘‘(6) enter into contracts with private entities, particularly 

with qualified private entities that have experience with 

instructing members of the armed forces eligible for assistance 

under the program carried out under this section on— 

‘‘(A) private sector culture, resume writing, career networking, and training on job search technologies; 

‘‘(B) academic readiness and educational opportunities; 

or 

‘‘(C) other relevant topics; and’’. 

SEC. 225. IMPROVED ACCESS TO APPRENTICESHIP PROGRAMS FOR 

MEMBERS OF THE ARMED FORCES WHO ARE BEING SEPARATED FROM ACTIVE DUTY OR RETIRED. 

Section 1144 of title 10, United States Code, is amended by 

adding at the end the following new subsection: 

‘‘(e) PARTICIPATION IN APPRENTICESHIP PROGRAMS.—As part of 

the program carried out under this section, the Secretary of Defense 

and the Secretary of Homeland Security may permit a member 

of the armed forces eligible for assistance under the program to 

participate in an apprenticeship program registered under the Act 

of August 16, 1937 (commonly known as the ‘National Apprenticeship Act’; 50 Stat. 664, chapter 663; 29 U.S.C. 50 et seq.), or 

a pre-apprenticeship program that provides credit toward a program 

registered under such Act, that provides members of the armed 

forces with the education, training, and services necessary to transition to meaningful employment that leads to economic self-sufficiency.’’. 

38 USC 4113 

note. 


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PUBLIC LAW 112–56—NOV. 21, 2011 125 STAT. 719 

SEC. 226. COMPTROLLER GENERAL REVIEW. 

Not later than two years after the date of the enactment 

of this Act, the Comptroller General of the United States shall 

conduct a review of the Transition Assistance Program (TAP) and 

submit to Congress a report on the results of the review and 

any recommendations of the Comptroller General for improving 

the program. 

Subtitle C—Improving the Transition of 

Veterans to Civilian Employment 

SEC. 231. TWO-YEAR EXTENSION OF AUTHORITY OF SECRETARY OF 

VETERANS AFFAIRS TO PROVIDE REHABILITATION AND 

VOCATIONAL BENEFITS TO MEMBERS OF THE ARMED 

FORCES WITH SEVERE INJURIES OR ILLNESSES. 

Section 1631(b)(2) of the Wounded Warrior Act (title XVI of 

Public Law 110–181; 10 U.S.C. 1071 note) is amended by striking 

‘‘December 31, 2012’’ and inserting ‘‘December 31, 2014’’. 

SEC. 232. EXPANSION OF AUTHORITY OF SECRETARY OF VETERANS 

AFFAIRS TO PAY EMPLOYERS FOR PROVIDING ON-JOB 

TRAINING TO VETERANS WHO HAVE NOT BEEN REHABILITATED TO POINT OF EMPLOYABILITY. 

Section 3116(b)(1) of title 38, United States Code, is amended 

by striking ‘‘who have been rehabilitated to the point of employability’’. 

SEC. 233. TRAINING AND REHABILITATION FOR VETERANS WITH 

SERVICE-CONNECTED DISABILITIES WHO HAVE 

EXHAUSTED RIGHTS TO UNEMPLOYMENT BENEFITS 

UNDER STATE LAW. 

(a) ENTITLEMENT TO ADDITIONAL REHABILITATION PROGRAMS.— 

(1) IN GENERAL.—Section 3102 of title 38, United States 

Code, is amended— 

(A) in the matter before paragraph (1), by striking 

‘‘A person’’ and inserting the following: 

‘‘(a) IN GENERAL.—A person’’; and 

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

‘‘(b) ADDITIONAL REHABILITATION PROGRAMS FOR PERSONS WHO

HAVE EXHAUSTED RIGHTS TO UNEMPLOYMENT BENEFITS UNDER

STATE LAW.—(1) Except as provided in paragraph (4), a person 

who has completed a rehabilitation program under this chapter 

shall be entitled to an additional rehabilitation program under 

the terms and conditions of this chapter if— 

‘‘(A) the person is described by paragraph (1) or (2) of 

subsection (a); and 

‘‘(B) the person— 

‘‘(i) has exhausted all rights to regular compensation 

under the State law or under Federal law with respect 

to a benefit year; 

‘‘(ii) has no rights to regular compensation with respect 

to a week under such State or Federal law; and 

‘‘(iii) is not receiving compensation with respect to such 

week under the unemployment compensation law of 

Canada; and 

10 USC 1071 

note. 

Deadline. 

Reports. 


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‘‘(C) begins such additional rehabilitation program within 

six months of the date of such exhaustion. 

‘‘(2) For purposes of paragraph (1)(B)(i), a person shall be 

considered to have exhausted such person’s rights to regular compensation under a State law when— 

‘‘(A) no payments of regular compensation can be made 

under such law because such person has received all regular 

compensation available to such person based on employment 

or wages during such person’s base period; or 

‘‘(B) such person’s rights to such compensation have been 

terminated by reason of the expiration of the benefit year 

with respect to which such rights existed. 

‘‘(3) In this subsection, the terms ‘compensation’, ‘regular compensation’, ‘benefit year’, ‘State’, ‘State law’, and ‘week’ have the 

respective meanings given such terms under section 205 of the 

Federal-State Extended Unemployment Compensation Act of 1970 

(26 U.S.C. 3304 note). 

‘‘(4) No person shall be entitled to an additional rehabilitation 

program under paragraph (1) from whom the Secretary receives 

an application therefor after March 31, 2014.’’. 

(2) DURATION OF ADDITIONAL REHABILITATION PROGRAM.— 

Section 3105(b) of such title is amended— 

(A) by striking ‘‘Except as provided in subsection (c) 

of this section,’’ and inserting ‘‘(1) Except as provided in 

paragraph (2) and in subsection (c),’’; and 

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

‘‘(2) The period of a vocational rehabilitation program pursued 

by a veteran under section 3102(b) of this title following a determination of the current reasonable feasibility of achieving a vocational goal may not exceed 12 months.’’. 

(b) EXTENSION OF PERIOD OF ELIGIBILITY.—Section 3103 of 

such title is amended— 

(1) in subsection (a), by striking ‘‘in subsection (b), (c), 

or (d)’’ and inserting ‘‘in subsection (b), (c), (d), or (e)’’; 

(2) by redesignating subsection (e) as subsection (f); and 

(3) by inserting after subsection (d) the following new subsection (e): 

‘‘(e)(1) The limitation in subsection (a) shall not apply to a 

rehabilitation program described in paragraph (2). 

‘‘(2) A rehabilitation program described in this paragraph is 

a rehabilitation program pursued by a veteran under section 3102(b) 

of this title.’’. 

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

(a) and (b) shall take effect on June 1, 2012, and shall apply 

with respect to rehabilitation programs beginning after such date. 

(d) COMPTROLLER GENERAL REVIEW.—Not later than two years 

after the date of the enactment of this Act, the Comptroller General 

of the United States shall— 

(1) conduct a review of the training and rehabilitation 

under chapter 31 of title 38, United States Code; and 

(2) submit to Congress a report on the findings of the 

Comptroller General with respect to the review and any recommendations of the Comptroller General for improving such 

training and rehabilitation. 

Deadline. 

Reports. 

38 USC 3102 

note. 

Deadline. 

Deadline. 


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PUBLIC LAW 112–56—NOV. 21, 2011 125 STAT. 721 

SEC. 234. COLLABORATIVE VETERANS’ TRAINING, MENTORING, AND 

PLACEMENT PROGRAM. 

(a) IN GENERAL.—Chapter 41 of title 38, United States Code, 

is amended by inserting after section 4104 the following new section: 

‘‘§ 4104A. Collaborative veterans’ training, mentoring, and 

placement program 

‘‘(a) GRANTS.—The Secretary shall award grants to eligible nonprofit organizations to provide training and mentoring for eligible 

veterans who seek employment. The Secretary shall award the 

grants to not more than three organizations, for periods of two 

years. 

‘‘(b) COLLABORATION AND FACILITATION.—The Secretary shall 

ensure that the recipients of the grants— 

‘‘(1) collaborate with— 

‘‘(A) the appropriate disabled veterans’ outreach 

specialists (in carrying out the functions described in section 4103A(a)) and the appropriate local veterans’ employment representatives (in carrying out the functions 

described in section 4104); and 

‘‘(B) the appropriate State boards and local boards 

(as such terms are defined in section 101 of the Workforce 

Investment Act of 1998 (29 U.S.C. 2801)) for the areas 

to be served by recipients of the grants; and 

‘‘(2) based on the collaboration, facilitate the placement 

of the veterans that complete the training in meaningful 

employment that leads to economic self-sufficiency. 

‘‘(c) APPLICATION.—To be eligible to receive a grant under this 

section, a nonprofit organization shall submit an application to 

the Secretary at such time, in such manner, and containing such 

information as the Secretary may require. At a minimum, the 

information shall include— 

‘‘(1) information describing how the organization will— 

‘‘(A) collaborate with disabled veterans’ outreach 

specialists and local veterans’ employment representatives 

and the appropriate State boards and local boards (as 

such terms are defined in section 101 of the Workforce 

Investment Act of 1998 (29 U.S.C. 2801)); 

‘‘(B) based on the collaboration, provide training that 

facilitates the placement described in subsection (b)(2); and 

‘‘(C) make available, for each veteran receiving the 

training, a mentor to provide career advice to the veteran 

and assist the veteran in preparing a resume and developing job interviewing skills; and 

‘‘(2) an assurance that the organization will provide the 

information necessary for the Secretary to prepare the reports 

described in subsection (d). 

‘‘(d) REPORTS.—(1) Not later than six months after the date 

of the enactment of the VOW to Hire Heroes Act of 2011, the 

Secretary shall prepare and submit to the appropriate committees 

of Congress a report that describes the process for awarding grants 

under this section, the recipients of the grants, and the collaboration 

described in subsections (b) and (c). 

‘‘(2) Not later than 18 months after the date of enactment 

of the VOW to Hire Heroes Act of 2011, the Secretary shall— 

‘‘(A) conduct an assessment of the performance of the grant 

recipients, disabled veterans’ outreach specialists, and local 

Assessment. 

Grants. 

Nonprofit 

organizations. 

Time periods. 

38 USC 4104A. 

Grants. 


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125 STAT. 722 PUBLIC LAW 112–56—NOV. 21, 2011 

veterans’ employment representatives in carrying out activities 

under this section, which assessment shall include collecting 

information on the number of— 

‘‘(i) veterans who applied for training under this section; 

‘‘(ii) veterans who entered the training; 

‘‘(iii) veterans who completed the training; 

‘‘(iv) veterans who were placed in meaningful employment under this section; and 

‘‘(v) veterans who remained in such employment as 

of the date of the assessment; and 

‘‘(B) submit to the appropriate committees of Congress 

a report that includes— 

‘‘(i) a description of how the grant recipients used 

the funds made available under this section; 

‘‘(ii) the results of the assessment conducted under 

subparagraph (A); and 

‘‘(iii) the recommendations of the Secretary as to 

whether amounts should be appropriated to carry out this 

section for fiscal years after 2013. 

‘‘(e) AUTHORIZATION OF APPROPRIATIONS.—There is authorized 

to be appropriated to carry out this section $4,500,000 for the 

period consisting of fiscal years 2012 and 2013. 

‘‘(f) DEFINITIONS.—In this section— 

‘‘(1) the term ‘appropriate committees of Congress’ means— 

‘‘(A) the Committee on Veterans’ Affairs and the Committee on Health, Education, Labor, and Pension of the 

Senate; and 

‘‘(B) the Committee on Veterans’ Affairs and the Committee on Education and Workforce of the House of Representatives; and 

‘‘(2) the term ‘nonprofit organization’ means an organization 

that is described in section 501(c)(3) of the Internal Revenue 

Code of 1986 and that is exempt from taxation under section 

501(a) of such Code.’’. 

(b) CONFORMING AMENDMENT.—Section 4103A(a) of title 38, 

United States Code, is amended— 

(1) in paragraph (1), by inserting ‘‘and facilitate placements’’ after ‘‘intensive services’’; and 

(2) by adding at the end the following: 

‘‘(3) In facilitating placement of a veteran under this program, 

a disabled veterans’ outreach program specialist shall help to identify job opportunities that are appropriate for the veteran’s employment goals and assist that veteran in developing a cover letter 

and resume that are targeted for those particular jobs.’’. 

(c) CLERICAL AMENDMENT.—The table of sections at the beginning of chapter 41 of such title is amended by inserting after 

the item relating to section 4104 the following new item: 

‘‘4104A. Collaborative veterans’ training, mentoring, and placement program.’’. 

SEC. 235. APPOINTMENT OF HONORABLY DISCHARGED MEMBERS AND 

OTHER EMPLOYMENT ASSISTANCE. 

(a) APPOINTMENTS TO COMPETITIVE SERVICE POSITIONS.— 

(1) IN GENERAL.—Chapter 21 of title 5, United States Code, 

is amended by inserting after section 2108 the following: 

Time period. 


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PUBLIC LAW 112–56—NOV. 21, 2011 125 STAT. 723 

‘‘§ 2108a. Treatment of certain individuals as veterans, disabled veterans, and preference eligibles 

‘‘(a) VETERAN.— 

‘‘(1) IN GENERAL.—Except as provided under paragraph 

(3), an individual shall be treated as a veteran defined under 

section 2108(1) for purposes of making an appointment in the 

competitive service, if the individual— 

‘‘(A) meets the definition of a veteran under section 

2108(1), except for the requirement that the individual 

has been discharged or released from active duty in the 

armed forces under honorable conditions; and 

‘‘(B) submits a certification described under paragraph 

(2) to the Federal officer making the appointment. 

‘‘(2) CERTIFICATION.—A certification referred to under paragraph (1) is a certification that the individual is expected to 

be discharged or released from active duty in the armed forces 

under honorable conditions not later than 120 days after the 

date of the submission of the certification. 

‘‘(b) DISABLED VETERAN.— 

‘‘(1) IN GENERAL.—Except as provided under paragraph 

(3), an individual shall be treated as a disabled veteran defined 

under section 2108(2) for purposes of making an appointment 

in the competitive service, if the individual— 

‘‘(A) meets the definition of a disabled veteran under 

section 2108(2), except for the requirement that the individual has been separated from active duty in the armed 

forces under honorable conditions; and 

‘‘(B) submits a certification described under paragraph 

(2) to the Federal officer making the appointment. 

‘‘(2) CERTIFICATION.—A certification referred to under paragraph (1) is a certification that the individual is expected to 

be separated from active duty in the armed forces under honorable conditions not later than 120 days after the date of the 

submission of the certification. 

‘‘(c) PREFERENCE ELIGIBLE.—Subsections (a) and (b) shall apply 

with respect to determining whether an individual is a preference 

eligible under section 2108(3) for purposes of making an appointment in the competitive service.’’. 

(2) TECHNICAL AND CONFORMING AMENDMENTS.— 

(A) DEFINITIONS.—Section 2108 of title 5, United States 

Code, is amended— 

(i) in paragraph (1), in the matter following 

subparagraph (D), by inserting ‘‘, except as provided 

under section 2108a,’’ before ‘‘who has been’’; 

(ii) in paragraph (2), by inserting ‘‘(except as provided under section 2108a)’’ before ‘‘has been separated’’; and 

(iii) in paragraph (3), in the matter preceding 

subparagraph (A), by inserting ‘‘or section 2108a(c)’’ 

after ‘‘paragraph (4) of this section’’. 

(B) TABLE OF SECTIONS.—The table of sections for 

chapter 21 of title 5, United States Code, is amended 

Applicability. 

Deadline. 

Deadline. 

5 USC 2108a. 


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125 STAT. 724 PUBLIC LAW 112–56—NOV. 21, 2011 

by adding after the item relating to section 2108 the following: 

‘‘2108a. Treatment of certain individuals as veterans, disabled veterans, and preference eligibles.’’. 

(b) EMPLOYMENT ASSISTANCE: OTHER FEDERAL AGENCIES.— (1) DEFINITIONS.—In this subsection— 

(A) the term ‘‘agency’’ has the meaning given the term 

‘‘Executive agency’’ in section 105 of title 5, United States 

Code; and 

(B) the term ‘‘veteran’’ has the meaning given that 

term in section 101 of title 38, United States Code. 

(2) RESPONSIBILITIES OF OFFICE OF PERSONNEL MANAGE- MENT.—The Director of the Office of Personnel Management 

shall— 

(A) designate agencies that shall establish a program 

to provide employment assistance to members of the Armed 

Forces who are being separated from active duty in accordance with paragraph (3); and 

(B) ensure that the programs established under this 

subsection are coordinated with the Transition Assistance 

Program (TAP) of the Department of Defense. 

(3) ELEMENTS OF PROGRAM.—The head of each agency designated under paragraph (2)(A), in consultation with the 

Director of the Office of Personnel Management, and acting 

through the Veterans Employment Program Office of the agency 

established under Executive Order 13518 (74 Fed. Reg. 58533; 

relating to employment of veterans in the Federal Government), 

or any successor thereto, shall— 

(A) establish a program to provide employment assistance to members of the Armed Forces who are being separated from active duty, including assisting such members 

in seeking employment with the agency; 

(B) provide such members with information regarding 

the program of the agency established under subparagraph 

(A); and 

(C) promote the recruiting, hiring, training and 

development, and retention of such members and veterans 

by the agency. 

(4) OTHER OFFICE.—If an agency designated under paragraph (2)(A) does not have a Veterans Employment Program 

Office, the head of the agency, in consultation with the Director 

of the Office of Personnel Management, shall select an appropriate office of the agency to carry out the responsibilities 

of the agency under paragraph (3). 

SEC. 236. DEPARTMENT OF DEFENSE PILOT PROGRAM ON WORK 

EXPERIENCE FOR MEMBERS OF THE ARMED FORCES ON 

TERMINAL LEAVE. 

(a) IN GENERAL.—The Secretary of Defense may establish a 

pilot program to assess the feasibility and advisability of providing 

to members of the Armed Forces on terminal leave work experience 

with civilian employees and contractors of the Department of 

Defense to facilitate the transition of the individuals from service 

in the Armed Forces to employment in the civilian labor market. 

(b) DURATION.—The pilot program shall be carried out during 

the two-year period beginning on the date of the commencement 

of the pilot program. 

10 USC 1143 

note. 

Designation. 

38 USC 4214 

note. 


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PUBLIC LAW 112–56—NOV. 21, 2011 125 STAT. 725 

(c) REPORT.—Not later than 540 days after the date of the 

commencement of the pilot program, the Secretary shall submit 

to the Committee on Armed Services and the Committee on Veterans’ Affairs of the Senate and the Committee on Armed Services 

and the Committee on Veterans’ Affairs of the House of Representatives an interim report on the pilot program that includes the 

findings of the Secretary with respect to the feasibility and advisability of providing covered individuals with work experience as 

described in subsection (a). 

SEC. 237. ENHANCEMENT OF DEMONSTRATION PROGRAM ON 

CREDENTIALING AND LICENSING OF VETERANS. 

(a) IN GENERAL.—Section 4114 of title 38, United States Code, 

is amended— 

(1) in subsection (a), by striking ‘‘may’’ and inserting ‘‘shall’’; 

(2) in subsection (b)— 

(A) in paragraph (1)— 

(i) by striking ‘‘Assistant Secretary shall’’ and 

inserting ‘‘Assistant Secretary for Veterans’ Employment and Training shall, in consultation with the 

Assistant Secretary for Employment and Training,’’; 

(ii) by striking ‘‘not less than 10 military’’ and 

inserting ‘‘not more than five military’’; and 

(iii) by inserting ‘‘for Veterans’ Employment and 

Training’’ after ‘‘selected by the Assistant Secretary’’; 

and 

(B) in paragraph (2), by striking ‘‘consult with appropriate Federal, State, and industry officials to’’ and 

inserting ‘‘enter into a contract with an appropriate entity 

representing a coalition of State governors to consult with 

appropriate Federal, State, and industry officials and’’; and 

(3) by striking subsections (d) through (h) and inserting 

the following: 

‘‘(d) PERIOD OF PROJECT.—The period during which the Assistant Secretary shall carry out the demonstration project under this 

section shall be the two-year period beginning on the date of the 

enactment of the VOW to Hire Heroes Act of 2011.’’. 

(b) STUDY COMPARING COSTS INCURRED BY SECRETARY OF

DEFENSE FOR TRAINING FOR MILITARY OCCUPATIONAL SPECIALTIES

WITHOUT CREDENTIALING OR LICENSING WITH COSTS INCURRED BY

SECRETARY OF VETERANS AFFAIRS AND SECRETARY OF LABOR IN

PROVIDING EMPLOYMENT-RELATED ASSISTANCE.— 

(1) IN GENERAL.—Not later than 180 days after the conclusion of the period described in subsection (d) of section 4114 

of title 38, United States Code, as added by subsection (a), 

the Assistant Secretary of Labor of Veterans’ Employment and 

Training shall, in consultation with the Secretary of Defense 

and the Secretary of Veterans Affairs, complete a study comparing the costs incurred by the Secretary of Defense in training 

members of the Armed Forces for the military occupational 

specialties selected by the Assistant Secretary of Labor of Veterans’ Employment and Training pursuant to the demonstration project provided for in such section 4114, as amended 

by subsection (a), with the costs incurred by the Secretary 

of Veterans Affairs and the Secretary of Labor in providing 

employment-related assistance to veterans who previously held 

such military occupational specialties, including— 

Deadline. 

Effective date. 


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(A) providing educational assistance under laws 

administered by the Secretary of Veterans Affairs to veterans to obtain credentialing and licensing for civilian 

occupations that are similar to such military occupational 

specialties; 

(B) providing assistance to unemployed veterans who, 

while serving in the Armed Forces, were trained in a 

military occupational specialty; and 

(C) providing vocational training or counseling to veterans described in subparagraph (B). 

(2) REPORT.— 

(A) IN GENERAL.—Not later than 180 days after the 

conclusion of the period described in subsection (d) of section 4114 of title 38, United States Code, as added by 

subsection (a), the Assistant Secretary of Labor of Veterans’ 

Employment and Training shall submit to Congress a 

report on the study carried out under paragraph (1). 

(B) ELEMENTS.—The report required by subparagraph 

(A) shall include the following: 

(i) The findings of the Assistant Secretary with 

respect to the study required by paragraph (1). 

(ii) A detailed description of the costs compared 

under the study required by paragraph (1). 

SEC. 238. INCLUSION OF PERFORMANCE MEASURES IN ANNUAL 

REPORT ON VETERAN JOB COUNSELING, TRAINING, AND 

PLACEMENT PROGRAMS OF THE DEPARTMENT OF LABOR. 

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

(1) in paragraph (2), by striking ‘‘clause (1)’’ and inserting 

‘‘paragraph (1)’’; 

(2) in paragraph (5), by striking ‘‘and’’ at the end; 

(3) in paragraph (6), by striking the period and inserting 

‘‘; and’’; and 

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

‘‘(7) performance measures for the provision of assistance 

under this chapter, including— 

‘‘(A) the percentage of participants in programs under 

this chapter who find employment before the end of the 

first 90-day period following their completion of the program; 

‘‘(B) the percentage of participants described in 

subparagraph (A) who are employed during the first 180- 

day period following the period described in such subparagraph; 

‘‘(C) the median earnings of participants described in 

subparagraph (A) during the period described in such 

subparagraph; 

‘‘(D) the median earnings of participants described in 

subparagraph (B) during the period described in such 

subparagraph; and 

‘‘(E) the percentage of participants in programs under 

this chapter who obtain a certificate, degree, diploma, licensure, or industry-recognized credential relating to the program in which they participated under this chapter during 

the third 90-day period following their completion of the 

program.’’. 

Time periods. 


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PUBLIC LAW 112–56—NOV. 21, 2011 125 STAT. 727 

SEC. 239. CLARIFICATION OF PRIORITY OF SERVICE FOR VETERANS 

IN DEPARTMENT OF LABOR JOB TRAINING PROGRAMS. 

Section 4215 of title 38, United States Code, is amended— 

(1) in subsection (a)(3), by adding at the end the following: 

‘‘Such priority includes giving access to such services to a 

covered person before a non-covered person or, if resources 

are limited, giving access to such services to a covered person 

instead of a non-covered person.’’; and 

(2) by amending subsection (d) to read as follows: 

‘‘(d) ADDITION TO ANNUAL REPORT.—(1) In the annual report 

required under section 4107(c) of this title for the program year 

beginning in 2003 and each subsequent program year, the Secretary 

of Labor shall evaluate whether covered persons are receiving priority of service and are being fully served by qualified job training 

programs. Such evaluation shall include— 

‘‘(A) an analysis of the implementation of providing such 

priority at the local level; 

‘‘(B) whether the representation of veterans in such programs is in proportion to the incidence of representation of 

veterans in the labor market, including within groups that 

the Secretary may designate for priority under such programs, 

if any; and 

‘‘(C) performance measures, as determined by the Secretary, to determine whether veterans are receiving priority 

of service and are being fully served by qualified job training 

programs. 

‘‘(2) The Secretary may not use the proportion of representation 

of veterans described in subparagraph (B) of paragraph (1) as 

the basis for determining under such paragraph whether veterans 

are receiving priority of service and are being fully served by 

qualified job training programs.’’. 

SEC. 240. EVALUATION OF INDIVIDUALS RECEIVING TRAINING AT THE 

NATIONAL VETERANS’ EMPLOYMENT AND TRAINING SERVICES INSTITUTE. 

(a) IN GENERAL.—Section 4109 of title 38, United States Code, 

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

‘‘(d)(1) The Secretary shall require that each disabled veterans’ 

outreach program specialist and local veterans’ employment representative who receives training provided by the Institute, or its 

successor, is given a final examination to evaluate the specialist’s 

or representative’s performance in receiving such training. 

‘‘(2) The results of such final examination shall be provided 

to the entity that sponsored the specialist or representative who 

received the training.’’. 

(b) EFFECTIVE DATE.—Subsection (d) of section 4109 of title 

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

with respect to training provided by the National Veterans’ Employment and Training Services Institute that begins on or after the 

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

Act. 

Applicability. 

38 USC 4109 

note. 


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SEC. 241. REQUIREMENTS FOR FULL-TIME 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: 

‘‘(d) ADDITIONAL REQUIREMENT FOR FULL-TIME EMPLOYEES.— 

(1) A full-time disabled veterans’ outreach program specialist shall 

perform only duties related to meeting the employment needs of 

eligible veterans, as described in subsection (a), and shall not perform other non-veteran-related duties that detract from the specialist’s ability to perform the specialist’s duties related to meeting 

the employment needs of eligible veterans. 

‘‘(2) The Secretary shall conduct regular audits to ensure 

compliance with paragraph (1). If, on the basis of such an audit, 

the Secretary determines that a State is not in compliance with 

paragraph (1), the Secretary may reduce the amount of a grant 

made to the State under section 4102A(b)(5) of this title.’’. 

(b) LOCAL VETERANS’ EMPLOYMENT REPRESENTATIVES.—Section 

4104 of such title is amended— 

(1) by redesignating subsection (e) as subsection (f); and 

(2) by inserting after subsection (d) the following new subsection (e): 

‘‘(e) ADDITIONAL REQUIREMENTS FOR FULL-TIME EMPLOYEES.— 

(1) A full-time local veterans’ employment representative shall perform only duties related to the employment, training, and placement 

services under this chapter, and shall not perform other non-veteran-related duties that detract from the representative’s ability 

to perform the representative’s duties related to employment, 

training, and placement services under this chapter. 

‘‘(2) The Secretary shall conduct regular audits to ensure 

compliance with paragraph (1). If, on the basis of such an audit, 

the Secretary determines that a State is not in compliance with 

paragraph (1), the Secretary may reduce the amount of a grant 

made to the State under section 4102A(b)(5) of this title.’’. 

(c) CONSOLIDATION.—Section 4102A of such title is amended 

by adding at the end the following new subsection: 

‘‘(h) CONSOLIDATION OF DISABLED VETERANS’ OUTREACH PROGRAM SPECIALISTS AND VETERANS’ EMPLOYMENT REPRESENTATIVES.—The Secretary may allow the Governor of a State receiving 

funds under subsection (b)(5) to support specialists and representatives as described in such subsection to consolidate the functions 

of such specialists and representatives if— 

‘‘(1) the Governor determines, and the Secretary concurs, 

that such consolidation— 

‘‘(A) promotes a more efficient administration of services to veterans with a particular emphasis on services 

to disabled veterans; and 

‘‘(B) does not hinder the provision of services to veterans and employers; and 

‘‘(2) the Governor submits to the Secretary a proposal 

therefor at such time, in such manner, and containing such 

information as the Secretary may require.’’. 

Determination. 

Proposal. 

Audits. 

Audits. 


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PUBLIC LAW 112–56—NOV. 21, 2011 125 STAT. 729 

Subtitle D—Improvements to Uniformed 

Services Employment and Reemployment Rights 

SEC. 251. CLARIFICATION OF BENEFITS OF EMPLOYMENT COVERED 

UNDER USERRA. 

Section 4303(2) of title 38, United States Code, is amended 

by inserting ‘‘the terms, conditions, or privileges of employment, 

including’’ after ‘‘means’’. 

Subtitle E—Other Matters 

SEC. 261. RETURNING HEROES AND WOUNDED WARRIORS WORK 

OPPORTUNITY TAX CREDITS. 

(a) IN GENERAL.—Paragraph (3) of section 51(b) of the Internal 

Revenue Code of 1986 is amended by striking ‘‘($12,000 per year 

in the case of any individual who is a qualified veteran by reason 

of subsection (d)(3)(A)(ii))’’ and inserting ‘‘($12,000 per year in the 

case of any individual who is a qualified veteran by reason of 

subsection (d)(3)(A)(ii)(I), $14,000 per year in the case of any individual who is a qualified veteran by reason of subsection 

(d)(3)(A)(iv), and $24,000 per year in the case of any individual 

who is a qualified veteran by reason of subsection (d)(3)(A)(ii)(II))’’. 

(b) RETURNING HEROES TAX CREDITS.—Subparagraph (A) of 

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

(1) by striking ‘‘or’’ at the end of clause (i), 

(2) by striking the period at the end of clause (ii)(II), 

and 

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

‘‘(iii) having aggregate periods of unemployment 

during the 1-year period ending on the hiring date 

which equal or exceed 4 weeks (but less than 6 

months), or 

‘‘(iv) having aggregate periods of unemployment 

during the 1-year period ending on the hiring date 

which equal or exceed 6 months.’’. 

(c) SIMPLIFIED CERTIFICATION.—Paragraph (13) of section 51(d) 

of the Internal Revenue Code of 1986 is amended by adding at 

the end the following new subparagraph: 

‘‘(D) CREDIT FOR UNEMPLOYED VETERANS.— 

‘‘(i) IN GENERAL.—Notwithstanding subparagraph 

(A), for purposes of paragraph (3)(A)— 

‘‘(I) a veteran will be treated as certified by 

the designated local agency as having aggregate 

periods of unemployment meeting the requirements of clause (ii)(II) or (iv) of such paragraph 

(whichever is applicable) if such veteran is certified 

by such agency as being in receipt of unemployment compensation under State or Federal law 

for not less than 6 months during the 1-year period 

ending on the hiring date, and 

‘‘(II) a veteran will be treated as certified by 

the designated local agency as having aggregate 

Time period. 

Time period. 

26 USC 51. 


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periods of unemployment meeting the requirements of clause (iii) of such paragraph if such 

veteran is certified by such agency as being in 

receipt of unemployment compensation under 

State or Federal law for not less than 4 weeks 

(but less than 6 months) during the 1-year period 

ending on the hiring date. 

‘‘(ii) REGULATORY AUTHORITY.—The Secretary may 

provide alternative methods for certification of a veteran as a qualified veteran described in clause (ii)(II), 

(iii), or (iv) of paragraph (3)(A), at the Secretary’s 

discretion.’’. 

(d) EXTENSION OF CREDIT.—Subparagraph (B) of section 51(c)(4) 

of the Internal Revenue Code of 1986 is amended to read as follows: 

‘‘(B) after— 

‘‘(i) December 31, 2012, in the case of a qualified 

veteran, and 

‘‘(ii) December 31, 2011, in the case of any other 

individual.’’. 

(e) CREDIT MADE AVAILABLE TO TAX-EXEMPT ORGANIZATIONS

IN CERTAIN CIRCUMSTANCES.— 

(1) IN GENERAL.—Subsection (c) of section 52 of the Internal 

Revenue Code of 1986 is amended— 

(A) by inserting ‘‘(1) IN GENERAL.—’’ before ‘‘No credit’’, 

and 

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

‘‘(2) CREDIT MADE AVAILABLE TO QUALIFIED TAX-EXEMPT

ORGANIZATIONS EMPLOYING QUALIFIED VETERANS.—For credit 

against payroll taxes for employment of qualified veterans by qualified tax-exempt organizations, see section 3111(e).’’. 

(2) CREDIT ALLOWABLE.—Section 3111 of such Code is 

amended by adding at the end the following new subsection: 

‘‘(e) CREDIT FOR EMPLOYMENT OF QUALIFIED VETERANS.— 

‘‘(1) IN GENERAL.—If a qualified tax-exempt organization 

hires a qualified veteran with respect to whom a credit would 

be allowable under section 38 by reason of section 51 if the 

organization were not a qualified tax-exempt organization, then 

there shall be allowed as a credit against the tax imposed 

by subsection (a) on wages paid with respect to employment 

of all employees of the organization during the applicable period 

an amount equal to the credit determined under section 51 

(after application of the modifications under paragraph (3)) 

with respect to wages paid to such qualified veteran during 

such period. 

‘‘(2) OVERALL LIMITATION.—The aggregate amount allowed 

as a credit under this subsection for all qualified veterans 

for any period with respect to which tax is imposed under 

subsection (a) shall not exceed the amount of the tax imposed 

by subsection (a) on wages paid with respect to employment 

of all employees of the organization during such period. 

‘‘(3) MODIFICATIONS.—For purposes of paragraph (1), section 51 shall be applied— 

‘‘(A) by substituting ‘26 percent’ for ‘40 percent’ in 

subsection (a) thereof, 

‘‘(B) by substituting ‘16.25 percent’ for ‘25 percent’ in 

subsection (i)(3)(A) thereof, and 

Applicability. 

26 USC 3111. 

26 USC 52. 

26 USC 51. 


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‘‘(C) by only taking into account wages paid to a qualified veteran for services in furtherance of the activities 

related to the purpose or function constituting the basis 

of the organization’s exemption under section 501. 

‘‘(4) APPLICABLE PERIOD.—The term ‘applicable period’ 

means, with respect to any qualified veteran, the 1-year period 

beginning with the day such qualified veteran begins work 

for the organization. 

‘‘(5) DEFINITIONS.—For purposes of this subsection— 

‘‘(A) the term ‘qualified tax-exempt organization’ means 

an employer that is an organization described in section 

501(c) and exempt from taxation under section 501(a), and 

‘‘(B) the term ‘qualified veteran’ has meaning given 

such term by section 51(d)(3).’’. 

(3) TRANSFERS TO FEDERAL OLD-AGE AND SURVIVORS INSUR- ANCE TRUST FUND.—There are hereby appropriated to the Federal Old-Age and Survivors Trust Fund and the Federal Disability Insurance Trust Fund established under section 201 

of the Social Security Act (42 U.S.C. 401) amounts equal to 

the reduction in revenues to the Treasury by reason of the 

amendments made by paragraphs (1) and (2). Amounts appropriated by the preceding sentence shall be transferred from 

the general fund at such times and in such manner as to 

replicate to the extent possible the transfers which would have 

occurred to such Trust Fund had such amendments not been 

enacted. 

(f) TREATMENT OF POSSESSIONS.— 

(1) PAYMENTS TO POSSESSIONS.— 

(A) MIRROR CODE POSSESSIONS.—The Secretary of the 

Treasury shall pay to each possession of the United States 

with a mirror code tax system amounts equal to the loss 

to that possession by reason of the amendments made 

by this section. Such amounts shall be determined by the 

Secretary of the Treasury based on information provided 

by the government of the respective possession of the 

United States. 

(B) OTHER POSSESSIONS.—The Secretary of the 

Treasury shall pay to each possession of the United States 

which does not have a mirror code tax system the amount 

estimated by the Secretary of the Treasury as being equal 

to the loss to that possession that would have occurred 

by reason of the amendments made by this section if a 

mirror code tax system had been in effect in such possession. The preceding sentence shall not apply with respect 

to any possession of the United States unless such possession establishes to the satisfaction of the Secretary that 

the possession has implemented (or, at the discretion of 

the Secretary, will implement) an income tax benefit which 

is substantially equivalent to the income tax credit in effect 

after the amendments made by this section. 

(2) COORDINATION WITH CREDIT ALLOWED AGAINST UNITED

STATES INCOME TAXES.—The credit allowed against United 

States income taxes for any taxable year under the amendments 

made by this section to section 51 of the Internal Revenue 

Code of 1986 to any person with respect to any qualified veteran 

shall be reduced by the amount of any credit (or other tax 

benefit described in paragraph (1)(B)) allowed to such person 

Determination. 

26 USC 51 note. 


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125 STAT. 732 PUBLIC LAW 112–56—NOV. 21, 2011 

against income taxes imposed by the possession of the United 

States by reason of this subsection with respect to such qualified 

veteran for such taxable year. 

(3) DEFINITIONS AND SPECIAL RULES.— (A) POSSESSION OF THE UNITED STATES.—For purposes 

of this subsection, the term ‘‘possession of the United 

States’’ includes American Samoa, Guam, the Commonwealth of the Northern Mariana Islands, the Commonwealth of Puerto Rico, and the United States Virgin Islands. 

(B) MIRROR CODE TAX SYSTEM.—For purposes of this 

subsection, the term ‘‘mirror code tax system’’ means, with 

respect to any possession of the United States, the income 

tax system of such possession if the income tax liability 

of the residents of such possession under such system is 

determined by reference to the income tax laws of the 

United States as if such possession were the United States. 

(C) TREATMENT OF PAYMENTS.—For purposes of section 

1324(b)(2) of title 31, United States Code, the payments 

under this subsection shall be treated in the same manner 

as a refund due from credit provisions described in such 

section. 

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

shall apply to individuals who begin work for the employer after 

the date of the enactment of this Act. 

SEC. 262. EXTENSION OF REDUCED PENSION FOR CERTAIN VETERANS 

COVERED BY MEDICAID PLANS FOR SERVICES FURNISHED 

BY NURSING FACILITIES. 

Section 5503(d)(7) of title 38, United States Code, is amended 

by striking ‘‘May 31, 2015’’ and inserting ‘‘September 30, 2016’’. 

SEC. 263. REIMBURSEMENT RATE FOR AMBULANCE SERVICES. 

Section 111(b)(3) of title 38, United States Code, is amended 

by adding at the end the following new subparagraph: 

‘‘(C) In the case of transportation of a person under subparagraph (B) by ambulance, the Secretary may pay the provider of 

the transportation the lesser of the actual charge for the transportation or the amount determined by the fee schedule established 

under section 1834(l) of the Social Security Act (42 U.S.C. 1395(l)) 

unless the Secretary has entered into a contract for that transportation with the provider.’’. 

SEC. 264. EXTENSION OF AUTHORITY FOR SECRETARY OF VETERANS 

AFFAIRS TO OBTAIN INFORMATION FROM SECRETARY OF 

TREASURY AND COMMISSIONER OF SOCIAL SECURITY FOR 

INCOME VERIFICATION PURPOSES. 

Section 5317(g) of title 38, United States Code, is amended 

by striking ‘‘September 30, 2011’’ and inserting ‘‘September 30, 

2016’’. 

SEC. 265. MODIFICATION OF LOAN GUARANTY FEE FOR CERTAIN SUBSEQUENT LOANS. 

(a) IN GENERAL.—Section 3729(b)(2) of title 38, United States 

Code, is amended— 

(1) in subparagraph (A)— 

(A) in clause (iii), by striking ‘‘November 18, 2011’’ 

and inserting ‘‘October 1, 2016’’; and 

26 USC 51 note. 


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PUBLIC LAW 112–56—NOV. 21, 2011 125 STAT. 733 

(B) in clause (iv), by striking ‘‘November 18, 2011’’ 

and inserting ‘‘October 1, 2016’’; 

(2) in subparagraph (B)— 

(A) in clause (i), by striking ‘‘November 18, 2011’’ and 

inserting ‘‘October 1, 2016’’; 

(B) by striking clauses (ii) and (iii); 

(C) by redesignating clause (iv) as clause (ii); and 

(D) in clause (ii), as redesignated by subparagraph 

(C), by striking ‘‘October 1, 2013’’ and inserting ‘‘October 

1, 2016’’; 

(3) in subparagraph (C)— 

(A) in clause (i), by striking ‘‘November 18, 2011’’ and 

inserting ‘‘October 1, 2016’’; and 

(B) in clause (ii), by striking ‘‘November 18, 2011’’ 

and inserting ‘‘October 1, 2016’’; and 

(4) in subparagraph (D)— 

(A) in clause (i), by striking ‘‘November 18, 2011’’ and 

inserting ‘‘October 1, 2016’’; and 

(B) in clause (ii), by striking ‘‘November 18, 2011’’ 

and inserting ‘‘October 1, 2016’’. 

(b) EFFECTIVE DATE.—The amendments made by subsection 

(a) shall take effect on the later of— 

(1) November 18, 2011; or 

(2) the date of the enactment of this Act. 

TITLE III—OTHER PROVISIONS 

RELATING TO FEDERAL VENDORS 

SEC. 301. ONE HUNDRED PERCENT LEVY FOR PAYMENTS TO FEDERAL 

VENDORS RELATING TO PROPERTY. 

(a) IN GENERAL.—Section 6331(h)(3) of the Internal Revenue 

Code of 1986 is amended by striking ‘‘goods or services’’ and 

inserting ‘‘property, goods, or services’’. 

(b) EFFECTIVE DATE.—The amendment made by this section 

shall apply to levies issued after the date of the enactment of 

this Act. 

SEC. 302. STUDY AND REPORT ON REDUCING THE AMOUNT OF THE 

TAX GAP OWED BY FEDERAL CONTRACTORS. 

(a) STUDY.— 

(1) IN GENERAL.—The Secretary of the Treasury, or the 

Secretary’s delegate, in consultation with the Director of the 

Office of Management and Budget and the heads of such other 

Federal agencies as the Secretary determines appropriate, shall 

conduct a study on ways to reduce the amount of Federal 

tax owed but not paid by persons submitting bids or proposals 

for the procurement of property or services by the Federal 

government. 

(2) MATTERS STUDIED.—The study conducted under paragraph (1) shall include the following matters: 

(A) An estimate of the amount of delinquent taxes 

owed by Federal contractors. 

(B) The extent to which the requirement that persons 

submitting bids or proposals certify whether such persons 

have delinquent tax debts has— 

(i) improved tax compliance; and 

26 USC 6331 

note. 

26 USC 6331. 

38 USC 3729 

note. 


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125 STAT. 734 PUBLIC LAW 112–56—NOV. 21, 2011 

(ii) been a factor in Federal agency decisions not 

to enter into or renew contracts with such contractors. 

(C) In cases in which Federal agencies continue to 

contract with persons who report having delinquent tax 

debt, the factors taken into consideration in awarding such 

contracts. 

(D) The degree of the success of the Federal lien and 

levy system in recouping delinquent Federal taxes from 

Federal contractors. 

(E) The number of persons who have been suspended 

or debarred because of a delinquent tax debt over the 

past 3 years. 

(F) An estimate of the extent to which the subcontractors under Federal contracts have delinquent tax debt. 

(G) The Federal agencies which have most frequently 

awarded contracts to persons notwithstanding any certification by such person that the person has delinquent tax 

debt. 

(H) Recommendations on ways to better identify Federal contractors with delinquent tax debts. 

(b) REPORT.—Not later than 12 months after the date of the 

enactment of this Act, the Secretary of the Treasury shall submit 

to the Committee on Ways and Means of the House of Representatives, the Committee on Finance of the Senate, the Committee 

on Oversight and Government Reform of the House of Representatives, and the Committee on Homeland Security and Government 

Affairs of the Senate, a report on the study conducted under subsection (a), together with any legislative recommendations. 

TITLE IV—MODIFICATION OF CALCULATION OF MODIFIED ADJUSTED GROSS 

INCOME FOR DETERMINING CERTAIN 

HEALTHCARE PROGRAM ELIGIBILITY 

SEC. 401. MODIFICATION OF CALCULATION OF MODIFIED ADJUSTED 

GROSS INCOME FOR DETERMINING CERTAIN 

HEALTHCARE PROGRAM ELIGIBILITY. 

(a) IN GENERAL.—Subparagraph (B) of section 36B(d)(2) of the 

Internal Revenue Code of 1986 is amended by striking ‘‘and’’ at 

the end of clause (i), by striking the period at the end of clause 

(ii) and inserting ‘‘, and’’, and by adding at the end the following 

new clause: 

‘‘(iii) an amount equal to the portion of the taxpayer’s social security benefits (as defined in section 

86(d)) which is not included in gross income under 

section 86 for the taxable year.’’. 

(b) EFFECTIVE DATE.—The amendments made by this section 

shall take effect on the date of the enactment of this Act. 

(c) NO IMPACT ON SOCIAL SECURITY TRUST FUNDS.— 

(1) ESTIMATE OF SECRETARY.—The Secretary of the 

Treasury, or the Secretary’s delegate, shall annually estimate 

the impact that the amendments made by subsection (a) have 

on the income and balances of the trust funds established 

under section 201 of the Social Security Act (42 U.S.C. 401). 

Deadline. 

26 USC 36B note. 

26 USC 36B note. 

26 USC 36B. 


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PUBLIC LAW 112–56—NOV. 21, 2011 125 STAT. 735 

LEGISLATIVE HISTORY—H.R. 674: 

HOUSE REPORTS: No. 112–253 (Comm. on Ways and Means). 

CONGRESSIONAL RECORD, Vol. 157 (2011): 

Oct. 27, considered and passed House. 

Nov. 8–10, considered and passed Senate, amended. 

Nov. 16, House concurred in Senate amendment. 

DAILY COMPILATION OF PRESIDENTIAL DOCUMENTS (2011): 

Nov. 21, Presidential remarks. 

Æ 

(2) TRANSFER OF FUNDS.—If, under paragraph (1), the Secretary of the Treasury or the Secretary’s delegate estimates 

that such amendments have a negative impact on the income 

and balances of such trust funds, the Secretary shall transfer, 

not less frequently than quarterly, from the general fund an 

amount sufficient so as to ensure that the income and balances 

of such trust funds are not reduced as a result of such amendments. 

TITLE V—BUDGETARY EFFECTS 

SEC. 501. STATUTORY PAY-AS-YOU-GO ACT OF 2010. 

The budgetary effects of this Act, for the purpose of complying 

with the Statutory Pay-As-You-Go Act of 2010, shall be determined 

by reference to the latest statement titled ‘‘Budgetary Effects of 

PAYGO Legislation’’ for this Act, submitted for printing in the 

Congressional Record by the Chairman of the House Budget Committee, provided that such statement has been submitted prior 

to the vote on passage. 

Approved November 21, 2011. 

Deadline. 


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