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[112th Congress Public Law 56]
[From the U.S. Government Printing Office]

[[Page 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. <<NOTE: Nov. 21, 2011 -  [H.R. 674]>> 

    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.

[[Page 125 STAT. 712]]

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 <<NOTE: 3% Withholding Repeal and Job Creation Act.>>  
PERCENT WITHHOLDING REPEAL AND JOB CREATION ACT
SEC. 101. <<NOTE: 26 USC 1 note.>> 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 <<NOTE: 26 USC 3402.>>  is amended by striking subsection (t).

    (b) Effective <<NOTE: 26 USC 3402 note.>>  Date.--The amendment made 
by this section shall apply to payments made after December 31, 2011.

TITLE II--VOW <<NOTE: VOW to Hire Heroes Act of 2011.>>  TO HIRE HEROES
SEC. 201. <<NOTE: 38 USC 101 note.>>  SHORT TITLE.

    This title may be cited as the ``VOW to Hire Heroes Act of 2011''.

[[Page 125 STAT. 713]]

                     Subtitle A--Retraining Veterans

SEC. 211. <<NOTE: 38 USC 4100 note.>>  VETERANS RETRAINING 
                        ASSISTANCE PROGRAM.

    (a) Program Authorized.--
            (1) In <<NOTE: Deadline.>> 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 <<NOTE: Time periods.>>  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;

[[Page 125 STAT. 714]]

                    (E) is not in receipt of compensation for a service-
                connected disability rated totally disabling by reason 
                of unemployability;
                    (F) was <<NOTE: Time period.>>  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) <<NOTE: Deadline.>> 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 <<NOTE: Deadline.>>  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

[[Page 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 <<NOTE: Regulations. Waiver authority.>>  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

[[Page 125 STAT. 716]]

            ``(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 <<NOTE: 10 USC 1142 note.>>  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. <<NOTE: 10 USC 1144 note.>> 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 <<NOTE: Contracts.>> 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.

[[Page 125 STAT. 717]]

    (b) Publication.--The <<NOTE: Public information. Web posting.>>  
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:
``Sec. 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.

[[Page 125 STAT. 718]]

            ``(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 <<NOTE: 38 USC 4113 note.>>  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.''.

[[Page 125 STAT. 719]]

SEC. 226. COMPTROLLER GENERAL REVIEW.

    Not <<NOTE: Deadline. Reports.>> 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 <<NOTE: 10 USC 1071 note.>>  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

[[Page 125 STAT. 720]]

            ``(C) begins <<NOTE: Deadline.>>  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 <<NOTE: Deadline.>> 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 <<NOTE: 38 USC 3102 note.>>  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 <<NOTE: Deadline. Reports.>>  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.

[[Page 125 STAT. 721]]

SEC. 234. <<NOTE: Grants.>> 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:
``Sec. 4104A. <<NOTE: 38 USC 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 <<NOTE: Time periods.>>  
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 <<NOTE: Nonprofit organizations.>>  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 <<NOTE: Grants.>>  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 <<NOTE: Assessment.>>  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

[[Page 125 STAT. 722]]

        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 <<NOTE: Time period.>>  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:

[[Page 125 STAT. 723]]

``Sec. 2108a. <<NOTE: 5 USC 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 <<NOTE: Deadline.>>  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 <<NOTE: Deadline.>> 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 <<NOTE: Applicability.>> 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

[[Page 125 STAT. 724]]

                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 <<NOTE: 38 USC 4214 note.>>  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 management.--
        The <<NOTE: Designation.>>  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. <<NOTE: 10 USC 1143 note.>> 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.

[[Page 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 <<NOTE: Effective date.>>  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 <<NOTE: Deadline.>> 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--

[[Page 125 STAT. 726]]

                    (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 <<NOTE: Time periods.>>  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.''.

[[Page 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 <<NOTE: Applicability. 38 USC 4109 note.>>  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.

[[Page 125 STAT. 728]]

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 <<NOTE: Audits.>> 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 <<NOTE: Audits.>> 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 <<NOTE: Determination. Proposal.>>  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.''.

[[Page 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 <<NOTE: 26 USC 51.>>  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 <<NOTE: Time period.>>  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 <<NOTE: Time period.>>  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

[[Page 125 STAT. 730]]

                                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 <<NOTE: 26 USC 51.>>  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 <<NOTE: 26 USC 52.>>  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 <<NOTE: 26 
        USC 3111.>>  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 <<NOTE: Applicability.>>  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

[[Page 125 STAT. 731]]

                    ``(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 insurance 
        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 <<NOTE: 26 USC 51 note.>>  of Possessions.--
            (1) Payments to possessions.--
                    (A) Mirror <<NOTE: Determination.>>  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

[[Page 125 STAT. 732]]

        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 <<NOTE: 26 USC 51 note.>>  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

[[Page 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 <<NOTE: 38 USC 3729 note.>>  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 <<NOTE: 26 USC 6331.>>  1986 is amended by striking ``goods or 
services'' and inserting ``property, goods, or services''.

    (b) Effective <<NOTE: 26 USC 6331 note.>>  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

[[Page 125 STAT. 734]]

                          (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 <<NOTE: 26 USC 36B.>>  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 <<NOTE: 26 USC 36B note.>> Date.--The amendments made 
by this section shall take effect on the date of the enactment of this 
Act.

    (c) No <<NOTE: 26 USC 36B note.>> Impact on Social Security Trust 
Funds.--
            (1) Estimate <<NOTE: Deadline.>> 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).

[[Page 125 STAT. 735]]

            (2) Transfer <<NOTE: Deadline.>>  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.

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.

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