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[Senate Report 112-36]
[From the U.S. Government Publishing Office]

                                                        Calendar No. 95
112th Congress                                                   Report
                                 SENATE
 1st Session                                                     112-36

======================================================================

 
                       HIRING HEROES ACT OF 2011

                                _______
                                

                 July 18, 2011.--Ordered to be printed

                                _______
                                

         Mrs. Murray, from the Committee on Veterans' Affairs,
                        submitted the following

                              R E P O R T

                         [To accompany S. 951]

    The Committee on Veterans' Affairs (hereinafter, ``the 
Committee''), to which was referred the bill (S. 951), to amend 
titles 5, 10, and 38, United States Code (hereinafter, 
``U.S.C.''), to improve the provision of Federal transition, 
rehabilitation, vocational, and unemployment benefits to 
members of the Armed Forces and veterans, and for other 
purposes, having considered the same, reports favorably thereon 
with an amendment in the nature of a substitute, and recommends 
that the bill, as amended, do pass.

                              Introduction

    On May 11, 2011, Committee Chairman Patty Murray introduced 
S. 951, the proposed ``Hiring Heroes Act of 2011.'' Senators 
Akaka, Baucus, Begich, Boxer, Brown of Massachusetts, Brown of 
Ohio, Casey, Coons, Leahy, Murkowski, Rockefeller, Sanders, and 
Tester were original cosponsors. Later, Senators Bennet, 
Cardin, Durbin, Kerry, Klobuchar, Kohl, Levin, McCaskill, 
Menendez, Reed, Schumer, Snowe, Stabenow, Udall of New Mexico, 
and Whitehouse were added as cosponsors. S. 951, as introduced, 
would amend titles 5, 10, and 38 to improve the provision of 
Federal transition, rehabilitation, vocational, and 
unemployment benefits to members of the Armed Forces and 
veterans, and for other purposes. The bill was referred to the 
Committee.
    On May 26, 2011, Senator Robert Casey, Jr., introduced 
S. 1104, the proposed ``Veteran Transition Assistance Program 
Audit Act of 2011.'' S. 1104, as introduced, would require the 
Department of Labor (hereinafter, ``DOL'') to enter into a 
contract for audits of the Transition Assistance Program 
(hereinafter, ``TAP'') not less often than once every three 
years. The bill was referred to the Committee.

                           Committee Hearing

    On June 8, 2011, the Committee held a hearing on pending 
legislation, including S. 951 and S. 1104. Testimony was 
offered by: Michael Cardarelli, Principal Deputy Under 
Secretary for Benefits, Veterans Benefits Administration, 
Department of Veterans Affairs (hereinafter, ``VA''); John 
McWilliam, Deputy Assistant Secretary, Veterans' Employment and 
Training Service, DOL; Jeff Steele, Assistant Legislative 
Director, The American Legion; Joseph A. Violante, National 
Legislative Director, Disabled American Veterans; and Raymond 
Kelley, Director, National Legislative Service, Veterans of 
Foreign Wars of the United States.

                           Committee Meeting

    After carefully reviewing the testimony from the foregoing 
hearing, the Committee met in open session on June 29, 2011, to 
consider, among other legislation, an amended version of 
S. 951, consisting of provisions from S. 951 as introduced and 
provisions from the other legislation noted above. The 
Committee voted, without dissent, to report favorably S. 951 as 
amended to the Senate.

                     Summary of S. 951 as Reported

    S. 951 as reported (hereinafter, ``the Committee bill'') is 
summarized below:

    Section 1 would provide a short title.
    Section 2 would extend for two years the authority of the 
Secretary of Veterans Affairs (hereinafter, ``the Secretary'') 
to provide rehabilitation and vocational benefits to members of 
the Armed Forces with severe injuries or illnesses.
    Section 3 would expand the authority of the Secretary to 
pay employers for providing on-job training to veterans who 
have not yet been rehabilitated to the point of employability.
    Section 4 would provide training and rehabilitation for 
veterans with service-connected disabilities who have exhausted 
their rights to unemployment benefits under State and Federal 
law and exhausted entitlement to VA rehabilitation programs.
    Section 5 would require VA to conduct an assessment and 
follow-up on veterans who participate in VA training and 
rehabilitation programs.
    Section 6 would require mandatory participation in TAP by 
separating members of the Armed Forces, with certain limited 
exceptions.
    Section 7 would require that DOL follow-up with veterans 
who participated in TAP to ascertain their employment status. 
Section 7 would also require DOL to enter into a contract for 
audits of TAP not less often than once every three years.
    Section 8 would establish a collaborative veterans' 
training, mentoring, and placement program between nonprofit 
organizations and DOL.
    Section 9 would require the Department of Defense 
(hereinafter, ``DOD''), VA, and DOL to enter into a contract to 
study and identify equivalencies between military occupational 
specialty (hereinafter, ``MOS'') skills and the qualifications 
required for various positions of civilian employment. It would 
also require that the participants in TAP be provided with 
individual assessments of any civilian positions for which they 
may be qualified based upon their MOS skills.
    Section 10 would permit the Federal Government to expedite 
Federal employment for transitioning servicemembers and 
requires the Office of Personnel Management (hereinafter, 
``OPM'') to designate agencies to provide employment assistance 
to servicemembers separating from active duty and to coordinate 
such assistance with TAP.
    Section 11 would require DOL to conduct outreach to certain 
veterans receiving unemployment compensation and provide them 
with assistance in finding employment.
    Section 12 would authorize DOD to establish a pilot program 
for providing work experience with civilian employees and 
contractors of DOD to certain servicemembers on terminal leave.
    Section 13 would require DOL to conduct a demonstration 
project on credentialing and licensing for the purpose of 
facilitating the seamless transition of members of the Armed 
Forces from service on active duty to civilian employment. The 
section would also require DOL, in consultation with DOD and 
VA, to study and report upon the costs incurred by DOD to train 
servicemembers for MOSs and by VA and DOL for employment-
related assistance to veterans.
    Section 14 would authorize DOD and the Department of 
Homeland Security (hereinafter, ``DHS'') to permit 
participation by certain servicemembers in apprenticeship 
programs designed to provide the education, training, and 
services necessary for such servicemembers' transition to 
meaningful employment and economic self-sufficiency.
    Section 15 would extend VA's authority to levy a fee for 
certain guaranteed housing loans.

                       Background and Discussion

Sec. 2. 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 2 of the Committee bill, which is derived from 
S. 951 as introduced, would extend for a period of two years 
VA's authority to provide rehabilitation and vocational 
benefits to certain severely wounded members of the Armed 
Forces.
    Background. Under current law, and pursuant to section 1631 
of the Wounded Warrior Act (title XVI of Public Law 110-181; 10 
U.S.C. 1071 note), VA's authority to provide rehabilitation and 
vocational benefits to members of the Armed Forces with severe 
injuries or illnesses will expire on December 31, 2012.
    Committee Bill. Section 2 of the Committee bill would amend 
section 1631(b)(2) of the Wounded Warrior Act by extending 
through December 31, 2014, VA's authority to provide 
rehabilitation and vocational benefits to certain severely 
wounded active-duty servicemembers in the same manner as 
provided to veterans.
    It is the Committee's view that a two-year extension of 
VA's authority is necessary to ensure that severely wounded 
active-duty servicemembers have continued and uninterrupted 
access to rehabilitation and vocational benefits.

Sec. 3. 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 3 of the Committee bill, which is derived from 
S. 951 as introduced, would expand VA's current authority to 
incentivize on-job training of veterans with service-connected 
disabilities by permitting VA to compensate employers to 
provide on-job training to veterans who have not been fully 
rehabilitated.
    Background. Under current law, section 3116 of title 38, 
U.S.C., VA is authorized to promote the development and 
establishment of employment and training for veterans who have 
participated in certain rehabilitation programs, for veterans 
with service-connected disabilities, and for other qualifying 
veterans. The law authorizes VA to make payments to employers 
for providing on-job training to veterans who have been 
rehabilitated to the point of employability.
    Committee Bill. Section 3 of the Committee bill would amend 
section 3116 of title 38, by striking the requirement that 
veterans be rehabilitated to the point of employability before 
VA is authorized to make payments to employers for providing 
on-job training.
    This change will enable VA to incentivize employers to 
provide training and employment opportunities to a broader 
number of veterans and allow veterans to obtain on-job training 
and experience while they are still in rehabilitation.

Sec. 4. Training and rehabilitation for veterans with service-connected 
        disabilities who have exhausted rights to unemployment benefits 
        under State law.

    Section 4 of the Committee bill, which is derived from 
S. 951 as introduced, would provide up to an additional 24 
months of vocational rehabilitation and employment 
(hereinafter, ``VR&E'') services to veterans who have exhausted 
State or Federally-provided unemployment benefits.
    Background. According to the U.S. Bureau of Labor 
Statistics' (hereinafter, ``BLS'') report entitled, Employment 
Situation of Veterans--2010, veterans with service-connected 
disabilities are statistically less likely to participate in 
the labor force than veterans without such disabilities. For 
example, among veterans who served in the Gulf War II era (any 
veteran who served in the military at any time since September 
2001), one in four reported having a service-connected 
disability. Of these veterans, only 81 percent reported 
participating in the labor force, as compared to 86.2 percent 
of their non-disabled peers.
    Committee Bill. Section 4 of the Committee bill would amend 
section 3102 of title 38, U.S.C., to entitle certain veterans, 
who have completed a rehabilitation program, as set forth under 
chapter 31, to additional rehabilitation programs if they meet 
certain requirements.
    Under the Committee bill, a person who has completed a 
chapter 31 rehabilitation program would be entitled to an 
additional rehabilitation program if the person meets the 
current requirements for entitlement to a chapter 31 
rehabilitation program and has, under State or Federal law, 
exhausted all rights to regular unemployment compensation with 
respect to a benefit year, has no rights to regular 
compensation with respect to a week, is not receiving 
compensation with respect to such week under the unemployment 
compensation law of Canada, and begins such additional 
rehabilitation program within six months of the date of such 
exhaustion. Under this section, a person would be considered to 
have exhausted rights to regular unemployment compensation 
under State law when no payments of regular unemployment 
compensation may be made under such law because the person has 
received all regular unemployment compensation available based 
on employment or wages during a base period, or such person's 
rights to compensation have been terminated by reason of the 
expiration of the benefit year.
    Section 4 would amend section 3105 of title 38, U.S.C., to 
allow for up to 24 months of additional rehabilitation for a 
veteran who meets the requirements of this section.
    In the Committee's opinion, the troubling data that 
suggests the difficulty that service-connected veterans have in 
maintaining employment underscores the continued need to 
provide veterans with service-connected disabilities with the 
training and rehabilitation they need to successfully enter the 
labor force. It is the Committee's intent that this section 
would provide an additional resource to qualifying veterans who 
are not yet able to enter the labor force and rely upon 
rehabilitation programs to build skills needed to succeed in 
the workforce.

Sec. 5. Assessment and follow-up on veterans who participate in 
        Department of Veterans Affairs training and rehabilitation for 
        veterans with service-connected disabilities.

    Section 5 of the Committee bill, which is derived from 
S. 951 as introduced, would require VA to contact any veteran 
who participated in, or completed, a rehabilitation program 
under chapter 31 of title 38, U.S.C., including the VR&E 
program, at least two times in the year following his or her 
participation in the rehabilitation program to ascertain the 
veteran's employment status and the program's effectiveness.
    Background. Currently, title 38, U.S.C., does not impose 
upon VA an affirmative obligation to ascertain the employment 
status of a veteran who participated in, or completed, a 
rehabilitation program as set forth under chapter 31. Nor does 
title 38, U.S.C., obligate VA to assess such a rehabilitation 
program. Instead, section 3106(f) of title 38, U.S.C., requires 
only that:

        In connection with each period of extended evaluation 
        of a veteran and each rehabilitation program for a 
        veteran who is determined to have a serious employment 
        handicap, the Secretary shall assign a Department of 
        Veterans Affairs employee to be responsible for the 
        management and followup of the provision of all 
        services (including appropriate coordination of 
        employment assistance under section 3117 of this title) 
        and assistance under this chapter to such veteran.

    Committee Bill. Section 5 of the Committee bill would add a 
new subsection to section 3106, requiring that, for each 
rehabilitation program pursued by a veteran under chapter 31, 
VA shall contact the veteran not later than 180 days after the 
date on which the veteran completes his or her rehabilitation 
program or terminates participation in the program. The new 
subsection mandates that the Secretary contact the veteran not 
less frequently than once every 180 days for a period of one 
year to ascertain the employment status, to assess the 
effectiveness of the rehabilitation program in reaching the 
veteran's career goals, and to ascertain the level of 
satisfaction experienced by each veteran who received services 
under VR&E.
    This section clarifies the scope of VA's responsibility 
under section 3106 and ensures that VA will conduct appropriate 
follow-up regarding the employment status and satisfaction of 
any veteran participating in a rehabilitation program under 
chapter 31. Given the high unemployment rates for veterans with 
service-connected disabilities, the Committee believes such 
follow-up by VA may allow for important and necessary 
programmatic adjustments to ensure the quality of services 
provided. Such follow-up may also be an important and necessary 
step towards achieving a meaningful reduction in the veteran 
unemployment rate.

Sec. 6. Mandatory participation of members of the Armed Forces in the 
        Transition Assistance Program of the Department of Defense.

    Section 6 of the Committee bill, which is derived from 
S. 951 as introduced, would require that all servicemembers 
separating from the Armed Forces attend, and participate in, 
TAP prior to their separation, with certain limited exceptions.
    Background. According to the BLS, in 2010 the unemployment 
rate for young male veterans, ages 18-24, who served over the 
past decade outpaced that of non-veterans, 21.9 percent to 19.7 
percent. By February 2011, the unemployment rate for young 
veterans, ages 20-24, had grown to an unprecedented 27 percent. 
During that month, more than 1 in 4 young veterans were unable 
to find employment. These statistics underscore the challenging 
employment landscape for veterans.
    Under current law, section 1142 of title 10, U.S.C., DOD is 
required to provide pre-separation counseling to members of the 
Armed Forces who are leaving active duty. Pursuant to this 
requirement, DOD has delegated to each of the individual 
services the responsibility to design and implement a pre-
separation counseling program. The pre-separation counseling 
courses that the services have developed are generally only a 
couple of hours in length and cover very generally some of the 
required topics, the list of which is contained in section 
1142.
    Additionally, section 1144 of title 10, U.S.C., requires an 
interagency program known as the Transition Assistance Program, 
which offers more in-depth training on benefits, employment, 
and other subjects. TAP is delivered via a partnership between 
DOD, DOL's Veterans' Employment and Training Service 
(hereinafter, ``VETS''), VA, and DHS. TAP includes a wide 
variety of employment-related training lessons as well as a VA 
benefits briefing, and the Disabled Transition Assistance 
Program for wounded or injured servicemembers.
    With the unemployment rate for young veterans as high as 27 
percent, a comprehensive and effective transition program may 
be a critical resource for servicemembers separating from the 
Armed Forces.
    Under current law, participation in TAP by servicemembers 
is encouraged but not mandatory. Only the Marine Corps has 
elected to require its members to participate in TAP. According 
to Fiscal Year 2010 data provided by the Army, only 53.6 
percent of active duty junior enlisted soldiers, those with the 
ranks of private through specialist, who participated in pre-
separation counseling went beyond that course and also 
participated in TAP. For active duty junior officers, those 
with the ranks of second lieutenant through captain, 
participation was 35.8 percent. In the Army Reserve, both 
junior enlisted and junior officers participated in TAP at an 
incredibly low rate of approximately 1.7 percent.
    These low participation rates are especially of concern as 
junior servicemembers tend to be those most in need of the 
services provided by TAP and the benefits available through VA. 
For many, skills such as writing resumes or interviewing have 
never been needed or learned before, and not having such skills 
or knowing from where to learn them puts those individuals at a 
serious disadvantage when attempting to enter and compete in 
the civilian employment market.
    Committee Bill. Section 6 of the Committee bill would amend 
section 1144(c) of title 10, U.S.C., by requiring that all 
servicemembers transitioning from active duty participate in 
TAP, with certain limited exceptions.
    Specifically, section 6 would amend section 1144(c) by 
requiring that DOD and DHS ensure the participation in TAP of 
all servicemembers eligible for assistance under the program.
    The section would also authorize DOD and DHS, under 
regulations prescribed by both Departments, to waive 
participation with respect to such groups or classifications of 
members as DOD and DHS consider appropriate after consultation 
with DOL and VA. The scope of this authorization is to be 
construed narrowly. It is the Committee's intent that any 
waiver would be limited to general officers or flag officers or 
to certain members of the National Guard or the reserve 
components who were voluntarily or involuntarily recalled to 
active duty for a period not-exceeding 365 days.
    Revisions are pending by DOL, VA, and DOD to the applicable 
components of TAP. Those revisions would make the program 
focused and responsive to individual needs and would make the 
program modular in order to allow individuals to be assessed 
for specific needs and subsequently receive training in those 
areas. It is the Committee's intent that, in light of this 
effort, all servicemembers participate in at least the most 
basic components of TAP and that waivers not be granted except 
for those who are extraordinarily qualified or for those for 
whom TAP would be unnecessary or inappropriate due to other 
extraordinary circumstances.

Sec. 7. Follow-up and audits of Transition Assistance Program.

    Section 7 of the Committee bill, which is derived from 
S. 951 and S. 1104 as introduced, would require DOL to contact 
each veteran who participated in TAP not later than six months 
after the date on which that veteran separated from service in 
the Armed Forces to ascertain the veteran's employment status, 
and not less frequently than every three months thereafter for 
the remainder of the year. Section 7 would also require DOL to 
enter into a contract for audits of TAP not less often than 
once every three years.
    Background. Currently, DOL is not required to follow-up 
with servicemembers who participated in TAP and have since left 
active duty. DOL is also not required to track the employment 
status of TAP participants within one year following their 
separation from the Armed Forces. Consequently, there is no 
historical outcome data with which to evaluate the 
effectiveness of TAP as it relates to job placement for 
separating servicemembers.
    Additionally, under current law, there is no audit 
requirement for TAP.
    Committee Bill. Section 7 would require DOL to engage in 
follow-up with veterans who participated in TAP and track 
veterans' employment status. Section 7 would require DOL to 
contact each individual participating in TAP not later than 180 
days after the date on which that individual separates from the 
Armed Forces, and not less frequently than once every 90 days 
thereafter for a period of 180 days to ascertain the 
individual's employment status.
    By requiring DOL to engage in follow-up with veterans 
regarding their employment status, the Committee believes that 
VA, DOL, and DOD will be better able to track veteran 
employment status, evaluate the efficacy of TAP, and solicit 
veterans' feedback to improve TAP.
    Section 7 of the Committee bill would also require that DOL 
enter into a contract for audits of TAP. DOL would be required 
to enter into such contract with a private organization not 
affiliated with the program and ensure that the audits are 
conducted not less often than once every three years.
    Under this section, the organization conducting the audit 
would be required to measure the effectiveness of TAP and 
identify any measures needed to improve the effectiveness of 
the program. At the conclusion of each audit, the organization 
would be required to prepare a report containing the findings 
resulting from the audit and recommendations for improving the 
effectiveness of the program. The section would direct the 
organization to submit the report to DOL, the other Departments 
referred to in section 1144 of title 10, 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.
    Finally, under this section DOL, in conjunction with VA and 
DOD, would be required to review the report and implement any 
measures needed to improve the effectiveness of TAP.

Sec. 8. Collaborative veterans' training, mentoring, and placement 
        program.

    Section 8 of the Committee bill, which is derived from 
S. 951 as introduced, would establish a competitive grant 
program for non-profit organizations that provide mentoring and 
training to 
veterans.
    Background. High unemployment for young veterans 
underscores the need for innovative partnerships, programs, and 
organizations that prepare veterans to successfully transition 
from active duty service to civilian employment.
    One such example of an innovative organization is the non-
profit Veterans Green Jobs. At the Committee's April 13, 2011, 
hearing, Army veteran and Director of Veterans Development for 
Veterans Green Jobs, Garett Reppenhagen, described how his 
organization engages, transitions, and connects military 
veterans with meaningful employment opportunities that serve 
their communities and environment. Mr. Reppenhagen stated: 
``[O]ur successes have been accomplished by partnering with a 
wide array of government, private and nonprofit entities. We 
have developed an array of formal partnerships and teaming 
agreements with businesses, community colleges, 4-year 
educational institutions and other non-profits.''
    Committee Bill. Section 8 of the Committee bill would 
foster and sustain the critical work performed by non-profit 
organizations, like Veterans Green Jobs, and build upon public-
private partnerships that support veterans transitioning to 
civilian employment. The section would amend chapter 41 of 
title 38, U.S.C., by inserting after section 4104 a new section 
authorizing DOL to award grants to eligible non-profit 
organizations to provide training and mentoring for eligible 
veterans who seek employment. Under this provision, DOL shall 
award grants to not more than three organizations, for periods 
of two years.
    The section would require DOL to ensure that the recipients 
of such grants collaborate with the appropriate disabled 
veterans' outreach program specialists, the appropriate local 
veterans' employment representatives, and the appropriate State 
boards and local boards for the areas to be served by the grant 
recipients. DOL would also be required to ensure that grant 
recipients facilitate placement in employment that leads to 
economic self-sufficiency for veterans who have completed 
training.
    To be eligible for such grants, a non-profit organization 
must submit an application to DOL. The application must include 
information describing how the organization will engage in the 
collaboration discussed herein, provide training that 
facilitates job placement for veterans, and provide mentorship 
for each veteran receiving training.
    Section 8 would also require DOL to prepare and submit to 
the appropriate committees of Congress a report that describes 
the process for awarding grants, the recipients of such grants, 
and the collaboration described herein. DOL must provide this 
report not later than six months after the date of enactment of 
the Hiring Heroes Act of 2011.
    Additionally, not later than 18 months after the date of 
enactment, DOL would be required under this section to conduct 
an assessment of the performance of the grant recipients, 
disabled veterans' outreach program specialists, and local 
veterans' employment representatives in carrying out activities 
under this section. Such an assessment would include collecting 
information on the numbers of veterans who applied for training 
under this section, veterans who entered the training, veterans 
who completed the training, veterans who were placed in 
meaningful employment under this section, and veterans who 
remained in such employment as of the date of the assessment. 
DOL would also be required to submit to the appropriate 
committees of Congress a report that includes a description of 
how the grant recipients used the funds made available under 
this section, the results of the assessment, and DOL 
recommendations as to whether amounts should be appropriated to 
carry out this section for Fiscal Years after 2013.
    Section 8 also would authorize appropriations of $4,500,000 
for the period consisting of Fiscal Years 2012 and 2013.

Sec. 9. 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.

    Section 9 of the Committee bill, which is derived from 
S. 951 as introduced, would require DOD, VA, and DOL to jointly 
contract for a study to identify equivalencies between MOS-
related skills and civilian employment. This section would also 
require DOD to ensure that all TAP participants receive an 
individual assessment of civilian positions for which they may 
be qualified based upon the study.
    Background. Today, DOD provides some assessment of 
servicemembers' MOS-related skills; however, the comparison of 
military-acquired skills and civilian requirements is not 
robust or detailed. In many cases, the expectation has been 
that occupations with similar titles, such as military police 
and police officer, were equivalent and the servicemember would 
be able to simply begin an equivalent job in the civilian 
sector. However, this failed to take into account the myriad of 
certification and licensing requirements that military training 
has not provided. Additionally, the military has been unable to 
identify translatable skills or equivalent civilian occupations 
for several fields, such as the infantry. The result is many 
servicemembers separate from active duty unable to effectively 
translate their military experience to an equivalent civilian 
skill-set.
    Committee Bill. Section 9 of the Committee bill would 
require VA, DOD, and DOL to select a contractor to conduct a 
study to identify any equivalencies between the skills 
developed by members of the Armed Forces through various MOSs 
and the qualifications for various positions of civilian 
employment in the private sector. This section would also 
require Federal Government departments and agencies to 
cooperate with the contractor.
    Following completion of the study, the contractor would be 
required to submit a report to VA, DOD, and DOL. In turn, the 
section directs the Departments to jointly submit to Congress 
the report, along with such comments on the report as the 
Departments jointly consider appropriate.
    Section 9 would also require DOD to ensure that each member 
of the Armed Forces participating in TAP receives an 
individualized assessment of the various positions of civilian 
employment for which such member may be qualified as a result 
of the member's MOS. DOD would be required to transmit the 
individualized assessment to VA and DOL for use by either 
Department when providing employment related assistance during 
the member's transition from military service to a civilian 
career. The individualized assessment may also be used to 
otherwise facilitate and enhance a member's transition from 
military service to civilian life.
    It is the Committee's intent that the Departments will 
utilize the information developed pursuant to this section to 
more closely align military training to meet civilian-sector 
requirements in addition to military requirements and that the 
Departments will negotiate with applicable private sector 
entities to increase the acceptance of military training as 
being sufficient for applicable licenses and certifications.

Sec. 10. Appointment of honorably discharged members and other 
        employment assistance.

    Section 10 of the Committee bill, which is derived from 
S. 951, would allow the Federal Government to directly appoint 
a transitioning servicemember to a position in the civil 
service during the 180-day period after that servicemember's 
honorable discharge. The section would also direct OPM to 
designate Federal agencies that shall establish programs to 
provide employment assistance to servicemembers separating from 
the Armed Forces. These programs would be required to 
coordinate with TAP.
    Background. Chapter 33 of title 5, U.S.C., sets forth the 
examination, certification, and appointment process for 
individuals into the civil and competitive services in the 
Executive branch. Section 3301 of title 5 affords the President 
substantial authority and discretion to ``prescribe such 
regulations for the admission of individuals into the civil 
service in the Executive branch as will best promote the 
efficiency of that service * * *.''
    In 2009, President Obama issued Executive Order 13518, 
establishing the Veterans Employment Initiative (hereinafter, 
``VEI''). The order created the Council on Veterans Employment 
to advise and assist the President on improving employment 
opportunities for veterans in the Federal Government. Twenty-
four agencies are represented on the Council. Each has a 
Veterans Employment Program Office (hereinafter, ``VEPO''). The 
mission of these offices is to support the VEI and provide 
employment assistance to veterans at the agency level. The 
VEPOs are intended to provide a full-range of support to 
transitioning servicemembers and veterans.
    Several hiring authorities that may encourage and 
facilitate veterans' employment in the Federal Government are 
currently available to agencies. In his April 13, 2011, 
testimony before the Committee, the Director of OPM, John 
Berry, identified two such authorities:

        [T]he Veterans Recruitment Act authorizes non-
        competitive appointment for eligible veterans to 
        positions up to the GS-11 level, or equivalent. The 
        Veterans Employment Opportunities Act (VEOA) can be 
        used to appoint those entitled to veterans' preference 
        or veterans who have at least 3 years of active 
        military service to permanent positions in the 
        competitive civil service.

    Director Berry also outlined the Federal Government's 
continuing efforts to promote a seamless transition for 
servicemembers from active duty to the civil service.

        More than two years ago, we embarked on a broad 
        initiative to reform the entire Federal hiring process. 
        Along the way, we have attempted to address broad 
        systemic problems such as reducing long job 
        announcements and allowing resumes and cover letters as 
        applications. However, where appropriate, we have taken 
        on targeted approaches, as with veterans' employment, 
        to improving the recruitment and hiring of talented men 
        and women to represent the diversity of our Nation and 
        our workforce. This intersection of these various 
        reform initiatives is creating a veterans-friendly 
        employment environment that is unmatched in the private 
        sector.

    However, despite efforts of OPM to increase veteran 
representation in Federal employment, only 2,000 more veterans 
were hired in 2010 than the year prior.
    While resources exist for veterans seeking to transition 
into the civil service, servicemembers still on active duty are 
often unable to access such resources because they are not yet 
veterans. At present, servicemembers must wait until they have 
fully separated from active duty to be eligible for OPM civil 
service employment initiatives. Consequently, these 
servicemembers are unable to transition seamlessly from active 
duty to the civil service.
    Likewise, under sections 2108 and 3309(1) of title 5, 
U.S.C., a veteran must have a disability rating to establish 
ten-point preference eligibility for a service-connected 
disability. However, chronic delays in the adjudication of 
claims through VA's claims processing system prevent certain 
veterans who may be eligible for the ten-point preference from 
realizing such assistance when applying for Federal employment. 
Such delays cause an unnecessary disruption in the transition 
from active duty to the civil service.
    Committee Bill. Section 10 of the Committee bill would 
amend chapter 33 of title 5, U.S.C., by creating a new section, 
3330d, which would allow the head of an Executive agency to 
appoint an honorably discharged servicemember to a position in 
the civil service, without regard to certain civil service 
authorities, within the 180 days following such member's 
separation from service.
    Section 10 would also require OPM to designate agencies to 
establish a program to provide employment assistance to members 
of the Armed Forces who are being separated from active duty 
and to ensure such programs are coordinated with DOD via TAP. 
Each designated agency would be required to consult with OPM 
and act through its VEPO in order to establish the employment 
assistance program, which would include assistance to members 
of the Armed Forces seeking employment with that agency. Under 
the program, the agency would also provide servicemembers with 
information regarding its employment assistance program and 
would promote the recruitment, hiring, training and 
development, and retention of such servicemembers and veterans 
by the agency. If a designated agency does not have a VEPO, the 
agency would be required to select an appropriate office of the 
agency to carry out the employment assistance program. For 
purposes of this section, it would be consistent with the 
Committee's intent for OPM to designate the current 24 agencies 
with VEPOs as those that would initially take part in this new 
program.
    Section 10 would not affect any right or remedy set forth 
in sections 3330a through 3330c of title 5, U.S.C., nor would 
the section affect the probationary period authorized in 
section 3321 of title 5, U.S.C. Finally, the section would not 
alter the selective service requirement set forth in section 
3328 of title 5, U.S.C.
    The Committee expects that the enactment of this section 
would further support servicemembers' seamless transition from 
the Armed Forces into the civil service.
    The Committee recognizes that certain servicemembers are 
unable to receive a ten-point preference because of VA's 
lengthy claims processing system. The Committee believes that 
it is extremely unfortunate that disabled veterans are unable 
to benefit from assistance currently available to them under 
the law because of VA's inability to process claims in a timely 
manner. The Committee intends that this direct hiring authority 
would benefit these individuals by giving them assistance as 
soon as practicable, rather than when VA is able to adjudicate 
his or her claim.
    Moreover, a seamless transition benefits not only 
servicemembers, but also the Federal Government. It means that 
a servicemember can leverage the skills he or she gained while 
on active duty as a member of the civil service, thus ensuring 
the Federal Government's investment in training is fully 
realized. The Committee intends that, for those who are 
currently in Federal service, as active duty servicemembers, 
and who are qualified and wishing to extend their Federal 
service, by moving to an Executive agency, this section will 
assist in that effort.

Sec. 11. Outreach program for certain veterans receiving unemployment 
        compensation.

    Section 11 of the Committee bill, which is derived from 
S. 951, would require DOL to conduct outreach to recently 
separated veterans who have been in receipt of unemployment 
compensation for longer than 105 days, in order to provide 
employment assistance.
    Background. According to the Employment and Training 
Administration (hereinafter, ``ETA''), 36,716 newly discharged 
veterans claimed unemployment benefits during the week ending 
June 11, 2011, an increase of 1,124 from the prior week. During 
that same week, there were 2,584 initial claims for benefits by 
newly discharged veterans, a decrease of 134 from the preceding 
week.
    Committee Bill. Section 11 of the Committee bill would 
require DOL to carry out a program through VETS, the disabled 
veterans' outreach program specialists employed under section 
4103A of title 38, U.S.C., and local veterans' employment 
representatives employed under section 4104 of such title, to 
provide outreach to recently separated veterans who have been 
in receipt of unemployment compensation for more than 105 days.
    The Committee believes employment assistance and outreach 
by DOL to veterans in receipt of unemployment compensation is 
an appropriate measure given the persistent rate of high 
unemployment for young veterans.

Sec. 12. Department of Defense pilot program on work experience for 
        members of the Armed Forces on terminal leave.

    Section 12 of the Committee bill, which is derived from 
S. 951 as introduced, would authorize DOD to establish a pilot 
program to provide certain servicemembers on terminal leave 
work experience with civilian employees and contractors of DOD.
    Background. Servicemembers on terminal leave are uniquely 
positioned to use such leave time to prepare for their 
transition into civilian employment.
    Committee Bill. Section 12 of the Committee bill would 
authorize DOD to establish a pilot program to assess the 
feasibility and advisability of providing to certain 
servicemembers on terminal leave work experience with civilian 
employees and contractors of DOD. The program would be designed 
to facilitate a covered servicemember's transition from active 
duty into the civilian labor market.
    Under this section, an eligible servicemember would be any 
individual who (1) is a member of the Armed Forces; (2) DOD 
expects to be discharged or separated from service in the Armed 
Forces and is on terminal leave; (3) DOD determines has skills 
that can be used to provide services to DOD that are considered 
critical to the success of its mission; and (4) DOD determines 
might benefit from exposure to the civilian work environment in 
order to facilitate the individual's transition from service in 
the Armed Forces to employment in the civilian labor market.
    The pilot program would be carried out during the two-year 
period beginning on the date of the commencement of the pilot 
program.
    Not later than 540 days after the date of the enactment of 
this section, DOD would be required to submit to the Committee 
on Armed Services and the Committee on Veterans' Affairs of the 
Senate, and to the Committee on Armed Services and the 
Committee on Veterans' Affairs of the House of Representatives, 
a report on the pilot program. The report would include the 
findings of DOD with respect to the feasibility and 
advisability of providing such work experience to qualifying 
servicemembers.

Sec. 13. Enhancement of demonstration program on credentialing and 
        licensing of veterans.

    Section 13 of the Committee bill, which is derived from 
S. 951 as introduced, would require DOL to carry out a 
demonstration project on credentialing for five MOSs for the 
purpose of facilitating a seamless transition of members of the 
Armed Forces from active duty to civilian employment. The 
section would also require DOL, in consultation with DOD and 
VA, to study and report upon the costs incurred by DOD to train 
servicemembers for MOSs and by VA and DOL for employment-
related assistance to veterans.
    Background. Servicemembers continue to face barriers when 
attempting to draw upon their military training to satisfy 
civilian licensure or credentialing requirements. In his 
testimony before the Committee on April 13, 2011, former Navy 
Corpsman Eric Smith described how, despite his unique skills 
and qualifications as a senior corpsman, he has been unable to 
draw upon such experience to secure comparable civilian 
employment.

          During my deployment to Iraq, I served as the primary 
        corpsman for an infantry platoon in the 3rd Battalion, 
        5th Marine Regiment. In a combat zone, a platoon's 
        corpsman is their medical lifeline, performing duties 
        that in the civilian world are normally left to a 
        Physician's Assistant. In this capacity, my medical and 
        leadership training were unparalleled.

           *       *       *       *       *       *       *

          In 2009 [after having left active duty], I applied 
        for a job as a Certified Nursing Assistant * * *. My 
        experience in numerous medical disciplines and 
        procedures impressed the three nurses who interviewed 
        me for the position. When they recommended me to the 
        doctors in charge of the clinic, I was confident that I 
        would get the job. However, I never received a call 
        back.
          Looking back, I'm almost positive that despite my 
        knowledge and experience, I was ultimately disqualified 
        from the position for lack of civilian equivalent 
        certifications. I was disappointed by this outcome. 
        However, I was more frustrated by the reality that 
        graduation from Naval Hospital Corps school and years 
        worth of experience provided me with no certifications 
        that translated into the civilian world.

    Drawing upon Mr. Smith's story, Rear Admiral McCreary 
argued in his April 13, 2011, testimony before the Committee 
that it is clear ``a better understanding of how military 
certifications translate to civilian professional 
certifications should be addressed with State governments.''
    Under current law, section 4114 of title 38, U.S.C., DOL, 
through the Assistant Secretary of Veterans Employment and 
Training (hereinafter, ``ASVET''), is authorized to carry out a 
demonstration project on credentialing for the purpose of 
facilitating the seamless transition of servicemembers from 
active duty to civilian employment. The section provides for 
the selection of not less than ten MOSs for purposes of the 
demonstration project. The selected specialties must involve a 
skill or set of skills required for civilian employment in an 
industry with high growth or high worker demand.
    After selection of the ten MOSs, DOL is directed to consult 
with Federal, State, and industry stakeholders to identify 
requirements for civilian credentials, certifications, and 
licenses that require a skill or set of skills also required by 
an MOS selected under this section. DOL must analyze these 
requirements to determine which may be satisfied by the skills, 
training, or experience acquired by servicemembers with the 
applicable MOS.
    Following this determination, DOL is directed to cooperate 
with the appropriate government and industry stakeholders to 
reduce or eliminate any barriers to providing a civilian 
credential, certification, or license to a veteran who acquired 
any skill, training, or experience while serving as a member of 
the Armed Forces with an MOS selected under this section that 
satisfies the Federal and State requirements for the 
credential, certification, or license.
    Unfortunately, this program was never carried out because 
funding for the pilot was authorized only by utilizing 
unobligated funds that are appropriated in accordance with the 
authorization set forth in section 4106 of title 38, U.S.C., 
for the administration of job counseling, training, and 
placement services for veterans.
    Committee Bill. Section 13 of the Committee bill would 
amend section 4114 by mandating that DOL carry out the 
demonstration project on credentialing. Section 4114 would also 
be amended to require that the ASVET act in consultation with 
the Assistant Secretary for Employment and Training when 
selecting the specialties. The number of specialties to be 
selected would also be reduced from ten to five.
    The section would also strike subsections (d) through (h) 
of section 4114, concerning a task force, consultation, 
contract authority, and duration of the program described under 
current law. New subsection (d) would require the demonstration 
project to be carried out within a two-year period beginning on 
the date of the enactment of this section.
    Section 13 would also require, not later than 180 days 
after the enactment of the Committee bill, that the ASVET, in 
consultation with DOD and VA, study the costs incurred by DOD 
to train servicemembers for MOSs compared to those incurred by 
VA and DOL for employment-related assistance to veterans. The 
study would include an analysis of the costs incurred by VA to 
provide educational assistance to veterans regarding civilian 
credentialing and licensing and the costs associated with 
assistance, vocational training, and counseling to unemployed 
veterans who were trained in an MOS.
    Within the 180-day period after the enactment of the 
Committee bill, the ASVET would also be required to submit to 
Congress a report on the study carried out. Required provisions 
of the report would include the findings of the Assistant 
Secretary with respect to the study and an estimate of the 
savings that would be realized by VA and DOL if DOD were to 
tailor its MOS training(s) to satisfy Federal, State, and/or 
local requirements for certain credentials, certifications, or 
licenses.

Sec. 14. Improved access to apprenticeship programs for members of the 
        Armed Forces who are being separated from active duty or 
        retired.

    Section 14 of the Committee bill would amend section 1144 
of title 10, U.S.C., to authorize DOD and DHS to permit 
participation by certain servicemembers in an apprenticeship or 
pre-apprenticeship program designed to provide the education, 
training, and services necessary for such servicemembers' 
transition to meaningful employment and economic self-
sufficiency.
    Background. Under current law, TAP, which is authorized 
pursuant to section 1144 of title 10, furnishes counseling, 
assistance in identifying employment and training 
opportunities, help in obtaining such employment and training, 
and other related information and services to members of the 
Armed Forces who are being separated from active duty and the 
spouses of such members. However, it is not explicit what types 
of training are authorized to facilitate a servicemember's 
transition.
    Committee Bill. Section 14 of the Committee bill would 
amend section 1144 of title 10, by adding at the end a new 
subsection that would authorize DOD and DHS to permit a member 
of the Armed Forces eligible for assistance under the section 
to participate in a pre-apprenticeship program or an 
apprenticeship program.
    Such a program would be required to be registered under the 
Act of August 1937 (commonly known as the ``National 
Apprenticeship Act''; 50 Stat. 664, chapter 663; 29 U.S.C. 50 
et seq.). The section would also authorize DOD and DHS to 
permit an eligible member to participate in a pre-
apprenticeship program that provides credit toward a program 
registered under the Act of August 1937. Any such 
apprenticeship or pre-apprenticeship program would be required 
to provide participating servicemembers with the education, 
training, and services necessary to transition to meaningful 
employment that leads to economic self-sufficiency.
    The Committee believes that providing servicemembers with 
additional training opportunities will help facilitate a 
successful transition from active duty to civilian life.

Sec. 15. Extension of loan guaranty fee for certain subsequent loans.

    Section 15 of the Committee bill would extend VA's 
authority to levy a loan guaranty fee for certain subsequent 
guaranteed housing loans.
    Background. Under VA's home loan guaranty program, VA may 
guarantee a loan made to eligible servicemembers, veterans, 
reservists, and certain un-remarried surviving spouses for the 
purchase (or refinancing) of houses, condominiums, and 
manufactured homes.
    Section 3729(b)(2) of title 38, U.S.C., sets forth a loan 
fee table that lists funding fees, expressed as a percentage of 
the loan amount, for different types of loans.
    Committee Bill. Section 15 of the Committee bill would 
amend the fee schedule set forth in section 3729(b)(2) of title 
38 by extending VA's authority to collect certain fees and by 
adjusting the amount of the fees. Specifically, the section 
would amend section 3729(b)(2)(B)(ii) by striking ``January 1, 
2004, and before October 1, 2011'' and inserting ``October 1, 
2011, and before October 1, 2014,'' and by striking ``3.30'' 
both places it appears and inserting ``3.00.''
    The section would also amend section 3729(b)(2)(B)(i) by 
striking ``January 1, 2004'' and inserting ``October 1, 2011'' 
and by striking ``3.00'' both places it appears and inserting 
``3.30.'' The section would also strike clause (iii) and re-
designate clause (iv) as clause (iii). Clause (iii), as re-
designated, would be amended by striking ``October 1, 2013'' 
and inserting ``October 1, 2014.''
    The practical effect of these changes would be to lower the 
percentage of the home loan funding fee from 3.3 percent to 3.0 
percent beginning on October 1, 2011. The fee is currently 
scheduled to be reduced to 2.15 percent beginning on October 1, 
2011. Beginning on October 1, 2014, rather than the currently 
scheduled October 1, 2013, the funding fee would be reduced to 
1.25 percent.
    These amendments would take effect on the later of October 
1, 2011, and the date of the enactment of this section.

                      Committee Bill Cost Estimate

    In compliance with paragraph 11(a) of rule XXVI of the 
Standing Rules of the Senate, the Committee, based on 
information supplied by the Congressional Budget Office 
(hereinafter, ``CBO''), estimates that, on net, the Committee 
bill would decrease direct spending by $227 million over the 
2012-2016 period and by $179 million over the 2012-2021 period.
    In addition, CBO estimates that implementing the Committee 
bill would have a discretionary cost of $160 million over the 
2012-2016 period, assuming appropriation of the necessary 
amounts. The Committee bill contains no intergovernmental or 
private-sector mandates as defined in the Unfunded Mandates 
Reform Act.
    The cost estimate provided by CBO, setting forth a detailed 
breakdown of costs, follows:

                               Congressional Budget Office,
                                      Washington, DC, July 7, 2011.
Hon. Patty Murray,
Chairman,
Committee on Veterans' Affairs,
U.S. Senate, Washington, DC.

    Dear Madam Chairman:
    The Congressional Budget Office has prepared the enclosed 
cost estimate for S. 951, the Hiring Heroes Act of 2011.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is William Ma.
            Sincerely,
                                      Douglas W. Elmendorf,
                                                          Director.

  Enclosure.

S. 951, Hiring Heroes Act of 2011

    Summary: S. 951 would affect programs that provide 
employment services and mortgage guarantees to veterans. If 
enacted, CBO estimates that, on net, the bill would decrease 
direct spending by $227 million over the 2012-2016 period and 
by $179 million over the 2012-2021 period.
    In addition, CBO estimates that implementing S. 951 would 
have a discretionary cost of $160 million over the 2012-2016 
period, assuming appropriation of the necessary amounts.
    Pay-as-you-go procedures apply because enacting the 
legislation would affect direct spending. Enacting the bill 
would not affect revenues.
    S. 951 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act (UMRA).
    Estimated cost to the Federal Government: The estimated 
budgetary impact of S. 951 is shown in the following table. The 
costs of this legislation fall within budget functions 700 
(veterans benefits and services) and 050 (national defense).

                  Table 1.--Estimated Budgetary Effects of S.951, The Hiring Heroes Act of 2011
----------------------------------------------------------------------------------------------------------------
                                                                      By fiscal year, in millions of dollars--
                                                                   ---------------------------------------------
                                                                     2012   2013   2014   2015   2016  2012-2016
----------------------------------------------------------------------------------------------------------------
                                           CHANGES IN DIRECT SPENDING

Estimated Budget Authority........................................    -72    -62   -111      8      9      -227
Estimated Outlays.................................................    -72    -62   -111      8      9      -227

                                  CHANGES IN SPENDING SUBJECT TO APPROPRIATION

Estimated Authorization Level.....................................     59     26     27     28     27       166
Estimated Outlays.................................................     25     34     34     34     33       160
----------------------------------------------------------------------------------------------------------------
Notes: In addition to the direct spending effects shown here, enacting S.951 would have additional effects on
  direct spending beyond 2016 (see Table 2). CBO estimates that total direct spending would decrease by $179
  million over the 2012-2021 period.
Components may not add to totals because of rounding.

    Basis of estimate: S. 951 would affect a number of veterans 
programs. This estimate is based on information from the 
Department of Veterans Affairs (VA), the Department of Defense 
(DOD), the Department of Labor (DOL), and the U.S. Office of 
Personnel Management (OPM). For the purposes of this estimate, 
CBO assumes the bill will be enacted near the beginning of 
fiscal year 2012, that the necessary amounts will be 
appropriated each year, and that outlays will follow historical 
patterns for similar and existing programs.

Direct Spending

    Table 2 summarizes S. 951's effects on direct spending for 
veterans' housing loan guarantees and veterans' training and 
rehabilitation programs. In total, CBO estimates that enacting 
those provisions would reduce direct spending for veterans' 
programs by $179 million over the 2012-2021 period.
    Fees for Guaranteed Loans. Section 15 would increase the 
fee that VA charges for guaranteeing certain mortgages made to 
veterans. Under current law, VA guarantees lenders a payment of 
up to 25 percent of the outstanding loan balance (subject to 
some limitations on the original loan amount) in the event that 
a veteran defaults. Such guarantees enable veterans to get 
better loan terms, such as lower interest rates or smaller down 
payments. VA charges fees to some veterans for this guarantee 
to offset the costs of subsequent defaults.
    Veterans seeking a loan guarantee who have previously used 
that benefit must pay an upfront fee equal to 2.15 percent of a 
loan taken in 2012 or 2013, and 1.25 percent of such loans 
taken in 2014 or any year thereafter. Section 15 would increase 
the fee to 3.00 percent for such loans taken in the 2012-2014 
period. After 2014, the fee would remain at the current-law 
rate of 1.25 percent. Raising the fee for the next three years 
would increase collections by VA, thus lowering the subsidy 
cost of the loan guarantees and reducing direct spending by 
$257 million over the 2012-2014 period, CBO estimates.\1\
---------------------------------------------------------------------------
    \1\Under the Federal Credit Reform Act of 1990, the subsidy cost of 
a loan guarantee is the net present value of estimated payments by the 
government to cover defaults and delinquencies, interest subsidies, or 
other expenses, offset by any payments to the government, including 
origination fees, other fees, penalties, and recoveries on defaulted 
loans. Such subsidy costs are recorded in the budget when the loans are 
disbursed.

                                                      Table 2.--Impact of S.951 on Direct Spending
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                           By fiscal year, in millions of dollars--
                                                                    ------------------------------------------------------------------------------------
                                                                      2012   2013   2014  2015  2016  2017  2018  2019  2020  2021  2012-2016  2012-2021
--------------------------------------------------------------------------------------------------------------------------------------------------------
Fees for Guaranteed Loans
    Estimated Budget Authority.....................................    -73    -66   -118     0     0     0     0     0     0     0      -257       -257
    Estimated Outlays..............................................    -73    -66   -118     0     0     0     0     0     0     0      -257       -257
Benefits for Veterans Who Exhaust Unemployment Benefits
    Estimated Budget Authority.....................................      1      3      6     7     8     8     8     8     9     9        25         67
    Estimated Outlays..............................................      1      3      6     7     8     8     8     8     9     9        25         67
Employer Incentive Program
    Estimated Budget Authority.....................................      *      1      1     1     1     1     1     1     1     1         5         11
    Estimated Outlays..............................................      *      1      1     1     1     1     1     1     1     1         5         11
                                                                    ------------------------------------------------------------------------------------
    Total Changes in Direct Spending
        Estimated Budget Authority.................................    -72    -62   -111     8     9     9     9     9    10    10      -227       -179
        Estimated Outlays..........................................    -72    -62   -111     8     9     9     9     9    10    10      -227       -179
--------------------------------------------------------------------------------------------------------------------------------------------------------
Notes: * = less than $500,000.
Components may not add to totals because of rounding.

    Benefits for Veterans Who Exhaust Unemployment Benefits. 
Section 4 would entitle certain disabled veterans to 
participate in an additional program of vocational 
rehabilitation for up to 24 months. Veterans who have 
previously completed a program of vocational rehabilitation, 
and who have exhausted all rights to unemployment benefits, 
could qualify for the additional assistance, but only if they 
begin such a program within six months of the expiration of 
their unemployment benefits. Based on information from VA, CBO 
estimates that an average of 350 veterans would benefit from 
this provision each year, with each veteran receiving a total 
of about $19,000 in additional training assistance. Over the 
2012-2021 period, CBO estimates that providing an additional 
program of vocational rehabilitation to those veterans would 
increase direct spending by $67 million.
    Employer Incentive Program. Under current law, VA may pay 
employers up to one-half of a veteran's salary for direct 
expenses incurred in providing employment and on-the-job 
training to disabled veterans who have successfully completed a 
program of vocational rehabilitation. Section 3 would expand 
eligibility to disabled veterans who have not completed the 
program, thus increasing the number of veterans who would be 
eligible to have such payments made on their behalf. Based on 
information from VA, CBO estimates that an average of about 140 
additional veterans each year would benefit from on-the-job 
training opportunities resulting from this provision, with each 
participating employer receiving an average of $9,700 per 
veteran.
    Included in the estimated 140 veterans per year are about 
40 individuals that we expect would withdraw from a current 
program of vocational rehabilitation if offered employment with 
on-the-job training. Each of those veterans then would use an 
estimated $6,500 less in vocational rehabilitation benefits 
than he or she would have used under current law. On net, 
enacting this provision would increase direct spending by $11 
million over the 2012-2021 period, CBO estimates.
    Other Provisions. The following provisions would affect 
direct spending, because they would allow certain 
servicemembers on active duty to receive selected veterans' 
readjustment benefits earlier than they would have under 
current law but those effects would not be significant. CBO 
estimates that the shift in timing of benefits usage for those 
individuals would, collectively, increase direct spending by 
less than $500,000 over the 2012-2021 period.

     Section 2 would extend for two years VA's 
authority to provide rehabilitation and vocational benefits to 
severely injured servicemembers on active duty. Based on 
information from VA and DOD, CBO estimates that a small number 
of those individuals would begin to receive such benefits about 
three months earlier than they otherwise would have.
     Section 14 would allow active-duty servicemembers 
who are in the process of separating or retiring from service 
to participate in apprenticeship programs. Under current law, 
individuals may receive educational benefits while 
participating in approved apprenticeship programs. Based on 
information from VA and DOD, CBO estimates that a small 
population of individuals participating in apprenticeship 
programs would begin to receive benefits about four months 
earlier than they would have under current law.

Spending Subject to Appropriation

    S. 951 would authorize various programs to provide 
employment, training, and placement services to veterans and to 
servicemembers separating from active-duty. CBO estimates that 
implementing those programs would cost $160 million over the 
2012-2016 period, assuming appropriation of the specified and 
necessary amounts (see Table 3).

                         Table 3.--Impact of S.951 on Spending Subject to Appropriation
----------------------------------------------------------------------------------------------------------------
                                                                      By fiscal year, in millions of dollars--
                                                                   ---------------------------------------------
                                                                     2012   2013   2014   2015   2016  2012-2016
----------------------------------------------------------------------------------------------------------------
Outreach and Follow-Up Programs
    Estimated Authorization Level.................................     17     20     23     24     24       108
    Estimated Outlays.............................................     17     20     23     24     24       108
Individualized MOS Assessment
    Estimated Authorization Level.................................     32      0      0      0      0        32
    Estimated Outlays.............................................      2      6      6      6      6        26
Mandatory Participation in TAP
    Estimated Authorization Level.................................      2      3      3      3      3        14
    Estimated Outlays.............................................      2      3      3      3      3        14
Employment Services and Placement Programs
    Estimated Authorization Level.................................      5      *      *      *      *         5
    Estimated Outlays.............................................      1      3      1      *      *         5
Reports
    Estimated Authorization Level.................................      2      1      1      1      0         4
    Estimated Outlays.............................................      2      1      1      1      0         4
Credentialing and Licensure
    Estimated Authorization Level.................................      1      2      0      0      0         3
    Estimated Outlays.............................................      1      1      *      *      0         3
                                                                   ---------------------------------------------
    Total Changes in Discretionary Spending
        Estimated Authorization Level.............................     59     26     27     28     27       166
        Estimated Outlays.........................................     25     34     34     34     33       160
----------------------------------------------------------------------------------------------------------------
Notes: * = less than $500,000.
MOS = Military Occupational Specialty, TAP = Transition Assistance Program.
Components may not add to totals because of rounding.

    Outreach and Follow-Up Programs. Section 5 would require VA 
to conduct outreach to certain veterans and to follow up on 
veterans that participated in a program of vocational 
rehabilitation. Sections 7 and 11 would require DOL to follow 
up on all participants in DOD's Transition Assistance Program 
(TAP) and all recently separated servicemembers that have 
received unemployment compensation for ex-servicemembers (UCX) 
for more than 105 days. Collectively, CBO estimates that those 
programs would cost $108 million over the 2012-2016 period, 
assuming appropriation of the estimated amounts.
    Veterans in Receipt of UCX. Section 11 would require DOL to 
establish a program to conduct outreach and provide employment 
services to veterans who recently separated from uniformed 
service and who have received UCX for more than 105 days. Based 
on information from VA and DOL, CBO estimates that about 70,000 
veterans each year would be contacted through this program. CBO 
estimates those efforts would cost about $45 million over the 
2012-2016 period to hire 100 additional employees to conduct 
this outreach, assuming appropriation of the estimated amounts.
    Veterans Who Participated in DOD's TAP. Section 7 would 
require DOL to determine the employment status of every TAP 
participant not later than 180 days after separating from 
uniformed service and then once every 90 days thereafter for a 
period of 180 days. Based on information from DOL and DOD, and 
assuming enactment of section 6 (see discussion below under 
``Mandatory Participation in TAP''), CBO estimates that DOL 
would need to contact about 175,000 veterans each year. CBO 
estimates that it would cost $39 million to hire the additional 
staff and about $2 million to develop and maintain the 
information technology (IT) system needed to conduct this 
outreach over the 2012-2016 period, assuming appropriation of 
the estimated amounts.
    Veterans Who Participated in a Program of Vocational 
Rehabilitation. Section 5 would require VA to determine the 
employment status of veterans who have either completed or 
terminated a program of vocational rehabilitation and to assess 
the effectiveness of those programs. Those assessments must be 
made within 180 days after an individual completes or 
terminates a program and then once every 180 days for a period 
of one year. Based on information from VA, CBO estimates that 
VA would have to hire about 40 additional vocational 
rehabilitation counselors to conduct this type of follow-up on 
about 35,000 veterans annually. VA also would have to develop 
an IT system to track those efforts. CBO estimates that the 
costs to hire those vocational rehabilitation counselors and to 
develop and maintain the IT system would total $21 million and 
$1 million, respectively, over the 2012-2016 period, assuming 
appropriation of the estimated amounts.
    Individualized MOS Assessments. Section 9 would require 
DOL, VA, and DOD to conduct a joint study to identify the 
skills servicemembers develop through their respective military 
occupational specialties (MOS) and then map those skills to 
positions in the civilian sector. Upon completion of the study, 
the Secretary of Defense would be required to provide 
separating servicemembers with an individualized assessment of 
the different positions in the civilian sector for which they 
may be qualified. Based on information from DOD, CBO estimates 
that about 1,750 different MOSs would need to be studied. CBO 
estimates that the study would take several years and would 
cost $26 million over the 2012-2016 period, assuming 
appropriation of the estimated amounts.
    Mandatory Participation in TAP. Under current law, 
separating servicemembers are not required to participate in 
the employment and job training workshops provided by DOL as an 
element of TAP. Section 6 would mandate that all servicemembers 
separating from active-duty participate in those workshops. 
(The Secretaries of Defense and Homeland Security would be 
authorized to waive that requirement for certain individuals.) 
Under current law, DOL provides employment and job training 
services to an average of 130,000 separating servicemembers 
through about 4,100 employment workshops per year. Based on 
information from DOL and DOD, CBO estimates that under section 
6 an additional 45,000 individuals would be required to attend 
those workshops each year and that DOL would have to hold about 
1,400 additional workshops annually to accommodate the 
increased attendance. Based on the cost of current workshops, 
CBO estimates that implementing section 6 would cost $14 
million over the 2012-2016 period, assuming appropriation of 
the estimated amounts.
    Employment Services and Placement Programs. Sections 8, 10, 
12, and 14 would assist veterans and servicemembers separating 
from active duty in seeking and obtaining employment. Such 
assistance would include:

     Direct appointment of qualified veterans to civil 
service positions,
     A work-experience program within DOD and with DOD 
contractors for active-duty servicemembers on terminal leave,
     Access to apprenticeship programs for members 
separating or retiring from active duty, and
     A mentorship and training program for veterans 
seeking employment.

    Based on information from DOD and OPM, CBO estimates that, 
collectively, those programs would cost about $5 million over 
the 2012-2021 period, assuming appropriation of the authorized 
and estimated amounts.
    Reports, Studies, and Audits. S. 951 would require several 
reports, studies, and an audit to be completed by the 
Secretaries of Labor, Defense, and Veterans Affairs. CBO 
estimates that those efforts, collectively, would cost $4 
million over the 2012-2016 period, assuming appropriation of 
the necessary amounts.
    Credentialing and Licensure. Section 13 would continue a 
demonstration project on credentialing and licensure of 
veterans for two years beginning on the date of enactment of 
this bill. The authority to run that project ended September 
30, 2009. This section also would require DOL to select not 
less than five MOSs for the demonstration project. Based on 
information from DOL, CBO estimates that continuing that 
demonstration project would cost $3 million over the 2012-2016 
period, assuming appropriation of the necessary amounts.
    Pay-As-You-Go Considerations: The Statutory Pay-As-You-Go 
Act of 2010 establishes budget-reporting and enforcement 
procedures for legislation affecting direct spending or 
revenues. CBO estimates that by modifying the veterans' housing 
loan guarantee program and other veterans' training and 
rehabilitation programs, S. 951 would decrease direct spending 
for veterans' benefits. The net changes in outlays that are 
subject to those pay-as-you-go procedures are shown in the 
following table. (Enacting S. 951 would not affect revenues.)

      Table 4.--CBO Estimate of Pay-As-You-Go Effects for S.951 as ordered reported by  the Senate Committee on Veterans' Affairs on June 29, 2011
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                         By fiscal year, in millions of dollars--
                                                                ----------------------------------------------------------------------------------------
                                                                 2011  2012  2013   2014  2015  2016  2017  2018  2019  2020  2021  2011-2016  2011-2021
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                       NET INCREASE OR DECREASE (-) IN THE DEFICIT

Statutory Pay-As-You-Go Impact.................................     0   -72   -62   -111     8     9     9     9     9    10    10      -227       -179
--------------------------------------------------------------------------------------------------------------------------------------------------------
Note: Numbers do not add to totals because of rounding.

    Intergovernmental and private-sector impact: S. 951 
contains no intergovernmental or private-sector mandates as 
defined in UMRA and would not affect the budgets of State, 
local, or tribal governments.
    Estimate prepared by: Federal Costs: Veterans Housing Loan 
Program--David Newman; Readjustment Benefits--William Ma; 
Impact on State, Local, and Tribal Governments: Lisa Ramirez-
Branum; Impact on the Private Sector: Elizabeth Bass.
    Estimate approved by: Theresa Gullo, Deputy Assistant 
Director for Budget Analysis.

                      Regulatory Impact Statement

    In compliance with paragraph 11(b) of rule XXVI of the 
Standing Rules of the Senate, the Committee on Veterans' 
Affairs has made an evaluation of the regulatory impact that 
would be incurred in carrying out the Committee bill. The 
Committee finds that the Committee bill would not entail any 
regulation of individuals or businesses or result in any impact 
on the personal privacy of any individuals and that the 
paperwork resulting from enactment would be minimal.

                 Tabulation of Votes Cast in Committee

    In compliance with paragraph 7 of rule XXVI of the Standing 
Rules of the Senate, the following is a tabulation of votes 
cast in person or by proxy by members of the Committee on 
Veterans' Affairs at its June 29, 2011, meeting. The Committee 
voted, without dissent, to report S. 951 as amended to the 
Senate.

                             Agency Report

    On June 8, 2011, Robert L. Jesse, M.D., PhD., Principal 
Deputy Under Secretary for Health, Veterans Health 
Administration, Department of Veterans Affairs, appeared before 
the Committee and submitted testimony on S. 951, among other 
issues. Excerpts from this statement are reprinted below:

STATEMENT OF ROBERT L. JESSE, MD, PhD, PRINCIPAL DEPUTY UNDER SECRETARY 
FOR HEALTH, VETERANS HEALTH ADMINISTRATION, U.S. DEPARTMENT OF VETERANS 
                                AFFAIRS

    Good Morning Chairman Murray, Ranking Member Burr and 
Members of the Committee: Thank you for inviting me here today 
to present the Administration's views on several bills that 
would affect Department of Veterans Affairs (VA) benefits 
programs and services. Joining me today are Michael Cardarelli, 
Principal Deputy Under Secretary for Benefits, Richard Hipolit, 
Assistant General Counsel, and Walter A. Hall, Assistant 
General Counsel. We do not yet have cleared views on S. 411, 
S. 491, S. 873, S. 874, S. 914, S. 1017, S. 1060, S. 1089, 
S. 1104, S. 1123, S. 1124, and S. 1127 and the draft bill 
entitled ``Veterans Programs Improvements Act of 2011.'' Also, 
we do not have estimated costs associated with implementing 
S. 396, S. 666, S. 910, S. 935, and section 9 of S. 951. We 
will forward the views and estimated costs to you as soon as 
they are available.

           *       *       *       *       *       *       *

                   S. 951, HIRING HEROES ACT OF 2011

    Chairman Murray, we are pleased to provide our views on 
sections 2, 3, 4, 5, and 9 of your bill, S. 951, the ``Hiring 
Heroes Act of 2011,'' but respectfully defer to the views of 
DOD regarding sections 6, 7, and 12; the Department of Labor 
(DOL) regarding sections 8, 11, and 13; and the Office of 
Personnel Management (OPM) regarding section 10.
    Section 2 of the bill would extend through 2014 a provision 
enacted in Title XVI of Public Law 110-181, known as the 
Wounded Warrior Act, which authorizes VA to provide 
rehabilitative services and assistance to certain severely 
disabled active-duty Servicemembers in the same manner as 
provided to Veterans. VA proposed a similar provision in its 
draft Veterans Benefits Improvement Act of 2011, transmitted to 
the Senate on May 19, 2011. While the provisions differ in the 
length of the extension, VA supports section 2.
    Section 3 of the bill would amend section 3116(b)(1) of 
title 38, United States Code, to expand VA's authority to pay 
employers for providing on-job training to Veterans. Under 
current law, VA is authorized to make payments to employers for 
providing on-job training to Veterans who have been 
rehabilitated to the point of employability in certain cases. 
By removing the requirement that Veterans be rehabilitated to 
the point of employability before VA can make payments to 
employers for providing on-job training, this section would 
allow VA to make these payments to employers for providing on-
job training to many more Veterans. VA supports this provision. 
VA estimates benefit costs to be $792 thousand for the first 
year, $4.2 million for five years, and $9.1 million over ten 
years.
    Section 4 of the bill would provide for additional 
rehabilitation programs for persons who have exhausted rights 
to unemployment benefits under State law. Under section 3102 of 
title 38, United States Code, as amended by this section, a 
person who has completed a chapter 31 rehabilitation program 
would be entitled to an additional rehabilitation program if 
the person meets the current requirements for entitlement to a 
chapter 31 rehabilitation program and has, under State or 
Federal law, exhausted all rights to regular compensation with 
respect to a benefit year, has no rights to regular 
compensation with respect to a week, and is not receiving 
compensation with respect to such week under the unemployment 
compensation law of Canada. In addition, the person must begin 
the additional rehabilitation program within 6 months of the 
date of such exhaustion. Under this section, a person would be 
considered to have exhausted rights to regular compensation 
under a State law when no payments of regular compensation can 
be made under such law because the person has received all 
regular compensation available based on employment or wages 
during a base period, or such person's rights to compensation 
have been terminated by reason of the expiration of the benefit 
year.
    Section 4 of the bill would also amend section 3105 of 
title 38, United States Code, to limit the period of an 
additional rehabilitation program to 24 months, and sections 
3105 and 3695 to exempt Veterans pursuing an additional 
rehabilitation program from certain limits. Under current 
section 3105, a rehabilitation program may not be pursued after 
12 years after a veteran's discharge or release from active 
service. Under current section 3695(b), assistance under 
chapter 31 in combination with certain other provisions of law 
is limited to 48 months. Section 4 of the bill would amend 
sections 3105 and 3695(b) to make these limitations 
inapplicable to an additional rehabilitation program.
    VA supports this provision because it would help VA serve 
more Veterans in need of assistance. VA estimates benefit costs 
to be $51 thousand in the first year, $294 thousand for five 
years, and $724 thousand over ten years.
    Section 5 of the bill would amend section 3106 of title 38, 
United States Code, to require an assessment and follow-up on 
Veterans with service-connected disabilities who participate in 
VA training and rehabilitation. In addition, section 5 would 
require VA to ascertain the employment status of a 
participating Veteran and assess his or her rehabilitation 
program not later than 180 days after completion of, or 
termination of, his or her participation in that program, and 
at least once every 180 days thereafter for a period of one 
year. VA supports this provision. We believe that providing 
follow-up is an important endeavor. No benefit costs would be 
associated with this provision. VA estimates administrative 
costs to be $4.7 million in the first year, $24.2 million over 
five years, and $55 million over ten years. In addition, VA 
estimates that $250 thousand will be needed in FY 2012 to 
develop an IT solution to automate follow up activity.
    Finally, section 9 of the bill would require VA, DOD, and 
DOL to select a contractor to conduct a study to identify 
equivalencies between skills developed by members of the 
military through various military occupational specialties 
(MOS) and the qualifications required for private sector 
civilian employment positions and report on the results of the 
study. This section would also require Federal Government 
departments and agencies to cooperate with the contractor. VA, 
DOD, and DOL would be required to transmit the report with 
appropriate comments to Congress.
    Section 9 would also require DOD to use the results of the 
study and other information to ensure that each member of the 
military participating in the Transition Assistance Program 
(TAP) receives an assessment of the various private sector 
civilian employment positions for which the member may be 
qualified as a result the member's MOS. DOD would have to 
transmit the individualized assessment to VA and DOL to use in 
providing employment-related assistance in the transition from 
military service to civilian life and to facilitate and enhance 
the transition.
    VA does not support this provision to enter into a joint 
contract to identify civilian equivalencies of military jobs. 
Software applications that analyze military occupational data 
and provide equivalent civilian jobs currently exist. 
Therefore, VA believes a contract to conduct a study to 
identify this information is not necessary. VA is currently 
utilizing web software available in the public domain that 
translates military skills to equivalent civilian jobs. VA will 
continue to closely monitor the market place to identify 
software that may improve our ability to identity civilian 
equivalents of military jobs.
    We do not have a cost estimate for implementing this 
section but will provide it when it is available.

           *       *       *       *       *       *       *

    This concludes my prepared statement. Madam Chairman, we 
would be pleased to respond to whatever questions you may have.
                                ------                                

    On June 8, 2011, John McWilliam, Deputy Assistant 
Secretary, Veterans' Employment and Training Service, 
Department of Labor, appeared before the Committee and 
submitted testimony on S. 951, among other issues. Excerpts 
from this statement are reprinted below:

  STATEMENT OF JOHN McWILLIAM, DEPUTY ASSISTANT SECRETARY, VETERANS' 
       EMPLOYMENT AND TRAINING SERVICE, U.S. DEPARTMENT OF LABOR

    Chairman Murray, Ranking Member Burr, and distinguished 
Members of the Committee, I am pleased to appear before you 
today to discuss legislation pending in this Committee aimed at 
helping our returning Servicemembers transition back to 
civilian life.

           *       *       *       *       *       *       *

    Your letter of invitation seeks input on a significant 
number of bills at this hearing, and you ask VETS to 
specifically provide input on S. 951, the ``Hiring Heroes Act 
of 2011.'' We have done so in subsequent portions of this 
testimony, in addition to providing comments on the proposed 
``Honoring All Veterans Act of 2011,'' which would require the 
Department of Labor (DOL), through the Assistant Secretary of 
the Office of Disability Employment Policy (ODEP), to initiate 
a program providing technical assistance to employers of 
Veterans who have a Traumatic Brain Injury or Post Traumatic 
Stress Disorder.
    As the remaining pieces of proposed legislation being 
addressed at this hearing fall under the purview of other 
departments, VETS defers to those departments and I will 
restrict my testimony to the appropriate sections of S. 951, 
and the ``Honoring All Veterans Act of 2011'' that have a 
direct impact on DOL and the Veterans' Employment and Training 
Service.
    In addition to the invitation for today's hearing, VETS has 
received a follow-up request to comment on Senator Casey's 
proposed ``Veteran Transition Assistance Program Audit Act of 
2011.'' Due to time constraints, VETS was unable to conduct a 
thorough review in time for today's hearing, but we look 
forward to providing our comments for the record and continuing 
to work with Senator Casey and this entire Committee to ensure 
that our Servicemembers receive the best assistance possible as 
they transition back to civilian life.

                 S. 951: ``HIRING HEROES ACT OF 2011''

    Section 6: This section would require the mandatory 
participation of members of the Armed Forces in the Transition 
Assistance Program (TAP). We assume that this mandatory 
participation would include participation in all segments of 
the TAP, to include the Department's Employment Workshop.
    We believe that all transitioning Servicemembers who plan 
to enter civilian employment would benefit from attending the 
Employment Workshop, but defer to the Department of Defense 
(DOD) as to whether this program should be mandatory for all 
transitioning Servicemembers.
    Section 7: This section would require DOL to follow-up on 
the employment status of members of the Armed Forces who 
recently participated in TAP. In particular, it would require 
that DOL contact each participating Veteran no later than six 
months after their completion of the program (TAP), and every 
three months thereafter for the rest of the year in order to 
ascertain the Veteran's employment status.
    DOL supports the concept of the TAP follow-up, but believes 
that the metrics of our redesigned Employment Workshop makes 
this requirement unnecessary. As you may recall, we recently 
testified on our current initiative to redesign and transform 
the Employment Workshop. As part of this initiative, a 
comprehensive follow-up program will be implemented to track 
participants' success entering the civilian workforce. DOL 
believes that this program may provide the information that the 
Committee desires, and we would like to work with the Committee 
to provide additional information on this initiative.
    Section 8: This section would: 1) establish a competitive 
grant program for nonprofit organizations that provide 
mentoring and training to Veterans; 2) require DOL and 
nonprofit organizations to collaborate in order to facilitate 
the placement of Veterans in jobs that lead to economic self-
sufficiency; 3) require DOL to conduct an assessment of grant 
performance no later than 18 months after enactment; and 4) 
authorize appropriations of $4.5 million for Fiscal Years 2012 
and 2013.
    DOL believes that this section is unnecessary. We note that 
this section seems to closely follow the parameters of the 
existing Veterans' Workforce Investment Program (VWIP) 
established under section 168 of the Workforce Investment Act 
of 1998, and it is unclear whether the intent of this section 
differs from the intent of the VWIP. Therefore, we would like 
to work with the Committee to discuss the potential overlap 
between this section and the VWIP.
    Section 9: Among other things, this section would require 
DOL, DOD, and the Department of Veterans Affairs (VA) to 
conduct a joint study to identify any equivalences between the 
skills developed by members of the Armed Forces through various 
military occupational specialties (MOS) and the qualifications 
required for various positions of civilian employment in the 
private sector.
    Section 9 is unnecessary as it duplicates existing 
processes that provide the capability to crosswalk 
Servicemember skills to equivalent civilian occupations. We 
note that there are several tools that partially meet the need 
for skill equivalencies for separating Servicemembers, such as 
the Department's Occupational Information Network (O*NET) and 
DOD's Credentialing Opportunities On-Line (COOL). In addition, 
the TAP redesign will include practical exercises to assist 
participants in translating their skills, abilities, 
experience, and training on to a resume, as well as creating an 
Individual Transition Plan. We would like to work with the 
Committee to explore ways to strengthen these resources and 
improve the transition of Veterans into civilian employment.
    Section 11: This section would require the Department to 
conduct outreach to recently-separated Veterans in receipt of 
unemployment compensation for longer than 105 days in order to 
provide employment assistance.
    The Department supports this section, but requests that the 
time period be changed from 105 days to 15 weeks to coincide 
with the end of a benefit week for the purposes of Unemployment 
Compensation.
    Section 13: This section would reauthorize and modify the 
demonstration program for the credentialing and licensure of 
Veterans contained in 38 U.S.C. 4114.
    DOL supports the concept of this section and believes that 
the credentialing and licensing of Veterans will be helpful in 
transitioning Servicemembers into the civilian sector, but 
there continue to be serious implementation issues with this 
provision. In particular, licensure and credentialing is mostly 
a function of the individual States, and to facilitate 
credentialing and licensure for Veterans, the demonstration 
project would require DOD to align its military training and 
assessments to more closely match States' civilian licensing 
requirements. We also note that credentialing and licensure 
requirements differ from State to State. We would like to work 
with the Committee to help resolve these issues so that the 
credentialing and licensure of Veterans can be more 
successfully implemented.

           *       *       *       *       *       *       *

    We are reminded everyday of the tremendous sacrifices made 
by our Veterans, Servicemembers and their families. Secretary 
Solis and the Veterans' Employment and Training Service believe 
that America must honor those sacrifices by providing the 
Nation's bravest with the best possible programs and services 
that we have to offer. We look forward to continuing our work 
with this Committee to do just that.
    I again thank this Committee for your commitment to our 
Nation's Veterans and for the opportunity to testify before 
you. We would be happy to work with your staffs to provide 
technical assistance on any of these or future bills, and I 
would be happy to respond to any questions.
                                ------                                

                STATEMENT OF U.S. DEPARTMENT OF DEFENSE

    Chairman Murray, Ranking Member Burr, and Members of this 
distinguished Committee thank you for extending the invitation 
to the Department of Defense to address pending legislation 
that would significantly affect our Servicemembers: S. 277, the 
proposed ``Caring for Camp Lejeune Veterans Act of 2011;'' 
S. 486, the proposed ``Protecting Servicemembers from Mortgage 
Abuses Act of 2011;'' S. 491, the proposed ``Honor America's 
Guard-Reserve Retirees Act of 2011;'' S. 698, the proposed bill 
to amend title 38, United States Code, to codify the 
prohibition against the reservation of gravesites at Arlington 
National Cemetery, and for other purposes; S. 951, the proposed 
``Hiring Heroes Act of 2011.''

           *       *       *       *       *       *       *

                                 S. 951

    The Department's comments on S. 951 are limited to sections 
directly impacting the Department.
    Section 2: The Department is not opposed to the provisions 
of section 2 that would extend Section 1631(b)(1) of the 
National Defense Authorization Act (NDAA) for 2008 (Public Law 
110-181) through December 31, 2014. Section 1631(b)(1) allows 
Servicemembers, with a severe injury or illness to receive 
vocational, rehabilitation and employment benefits (but not 
compensation) from the Secretary of Veterans Affairs to 
facilitate their recovery and rehabilitation while still a 
member of the Armed Forces. Extending this benefit provides 
Servicemembers with disabilities assistance in identifying the 
training requirements and resources needed to achieve their 
rehabilitation and employment goals.
    Section 6: The Department does not support section 6 as 
written. In FY 2010 there were approximately 155,000 active 
component retirements/separations with an 82.5 participation 
rate in the Department of Labor (DOL) employment workshops. 
Section 6 will require mandatory participation in the DOL 
Employment Workshop for all transitioning Servicemembers and 
does not allow any exceptions. As written, this section would 
require the following personnel to be retained on active duty 
until they have completed this TAP component: Unanticipated 
losses (i.e., administrative discharges), approximately 57,000; 
Demobilizing/deactivating Guard/Reserve Component 
Servicemembers to complete the same program as their active 
duty counterparts, approximately 100,000; and several thousand 
Individual Mobilization Augmentees (IMA).
    This provision also assumes increased TAP participation 
will correlate with an increase in transitioning Servicemembers 
obtaining employment. DOL is currently revamping its 2\1/2\-day 
employment workshop and will have the new workshop in place in 
November 2011. The Department recommends an analysis of the 
impact of the new workshop on employment before mandating this 
component of TAP for all transitioning personnel.
    There is also an unknown, but potentially huge resource 
requirement that is currently not addressed in the President's 
budget, which would result from extending the previously noted 
categories of Servicemembers on active duty in order to be in 
compliance with mandatory TAP requirements. This would require 
an in-depth cost analysis, showing the impact of extending 
personnel on active duty to provide TAP counseling/briefings as 
well as to determine the impact on existing facilities (i.e., 
adequate classrooms, additional counselors/coaches, 
administrative support staff, IT support, equipment/computers, 
and IT infrastructure). A mandatory TAP requirement would also 
be a huge increase on costs for demobilizing National Guard and 
Reserves, to include post-deployment follow-up for up 
intervention for employment assistance. Such costs would also 
need to be part of an in-depth cost analysis.
    In lieu of mandatory employment workshop participation for 
all separating Servicemembers, the Department recommends 
considering mandatory participation for Servicemembers with 10 
or fewer years of active duty service (if the goal is to impact 
the group with the highest unemployment rate) with an ``opt 
out'' provision for all others. The Department also recommends 
having TAP components provided no later than 6-9 months before 
discharge and allow Servicemembers access to partnership 
programs with private employers or methods to develop/refine 
job skills prior to discharge
    Section 9: The Department believes that section 9 is 
unnecessary as it duplicates existing processes that provide 
the capability to crosswalk Servicemember skills to equivalent 
civilian occupations, and therefore opposes section 9 of 
S. 951.
    During mandatory (required by statute) preseparation 
counseling, Servicemembers are informed about the Occupational 
Information Network. The revised DD Form 2648, Preseparation 
Counseling Checklist for Active Component (AC), Active Guard 
Reserve (AGR), and Reserve Program Administrator (RPA) 
Servicemembers, states, ``counselors will provide information 
on civilian occupations corresponding to Military occupations 
(see Occupational Information Network (O*NET Web site) at 
www.online.onetcenter.org/crosswalk and related programs * * 
*.''
    The Occupational Information Network (O*NET) is under the 
sponsorship of the US Department of Labor/Employment and 
Training Administration. The O*NET program is the Nation's 
primary source of occupational information. Central to the 
project is the O*NET database, containing information on 
hundreds of standardized and occupation-specific descriptors. 
The database is continually updated by surveying a broad range 
of workers from each occupation. O*NET Online contains 
crosswalks between the O*NET-Standard Occupational 
Classification (SOC) and the Classification of Instructional 
Programs (CIP), Dictionary of Occupational Titles (DOT), 
Military Occupational Classification (MOC), Registered 
Apprenticeship Partners Information Data System (RAPIDS), and 
Standard Occupational Classification (SOC).
    Additionally, the Department of Labor's Employment and 
Training Administration has a long-standing record of assisting 
transitioning Servicemembers with O*NET.
    Another program is the United States Military 
Apprenticeship Program (USMAP), a partnership between Secretary 
of Labor, Secretary of Navy and Secretary of Transportation. 
Out of 300 enlisted Military Occupational Specialties (MOS's), 
257 are covered under USMAP trades/occupations employing 
apprenticeship. Occupations offered through USMAP cross over 
into several civilian industries, including servicing, 
manufacturing and construction, and transportation/utilities.
    Section 10: The Department opposes section 10. The 
authority under this section is too broad in its application 
and scope. It would appear the language would simply allow 
veterans to be non-competitively appointed to the GS system 
within 180 days of discharge. There appears to be no provision 
on how we would establish qualifications. Given we have a 
myriad of hiring authorities for veterans, we do not see what 
problem this language is trying to solve. Further, it runs the 
risk of making it extremely difficult for someone who is not a 
veteran to gain entry level employment in light on this 
authority. We run the risk of inadvertently giving veterans 
preference that is far overreaching and will likely be 
challenged by the Merit Systems Protection Board.
    Section 12: The Department is not opposed to the provisions 
of section 12 which would allow the Department to establish a 
pilot program to provide separating Servicemembers, who are on 
terminal leave, work experience with civilian employees and 
contractors of the Department of Defense to facilitate the 
transition of those members from service in the Armed Forces to 
employment in the civilian labor market. The Department 
realizes the value of programs that improve the employment 
outcomes for our transitioning servicemembers, such as those 
that provide exposure to the civilian work environment while 
working for the Department. The Department of Labor, Veterans 
Affairs, and Homeland Security all jointly develop and 
contribute to the Transition Assistance Program, and we look 
forward to working with them to improve transition outcomes by 
using new and creative ideas, such as the one provided in this 
section.
                                ------                                

   STATEMENT OF HON. JOHN BERRY, DIRECTOR, U.S. OFFICE OF PERSONNEL 
                               MANAGEMENT

    As discussed in the April 13th testimony, there are special 
veterans' hiring authorities that the Federal Government can 
use to recruit and employ veterans. OPM continues to encourage 
agencies to make full use of the various hiring authorities 
that can facilitate veterans' employment. For example, the 
Veterans Recruitment Act (VRA) authorizes non-competitive 
appointment for eligible veterans to positions up to the GS-11 
level, or equivalent. The Veterans Employment Opportunities Act 
(VEOA) can be used to appoint those entitled to veterans' 
preference or veterans who have at least 3 years of active 
military service to permanent positions in the competitive 
civil service. Hiring of veterans under the VEOA increased from 
about 20,200 in 2009 to more than 20,750 in 2010. VRA 
appointments grew from 6,659 to nearly 7,000 during the same 
period, and the special hiring authority for veterans who are 
30 percent or More Disabled accounted for more than 2,000 hires 
last year, compared to 1,727 in 2009.
    Additionally, certain veterans have a statutory right to 
veterans' preference, as do certain mothers and spouses of 100 
percent disabled veterans, and certain widows of deceased 
veterans. Preference in hiring applies to permanent and 
temporary positions in the Executive branch. Veterans' 
preference also applies in a reduction in force.\1\
---------------------------------------------------------------------------
    \1\For more details on the history of veterans' preference, please 
visit http://www.opm.gov/staffingPortal/vghist.asp.
---------------------------------------------------------------------------
    In summary, there are numerous hiring authorities and 
statutory rights that facilitate veterans' employment in the 
Federal Government.

                 S. 951, THE HIRING HEROES ACT OF 2011

    S. 951 would create a fifth, separate hiring provision for 
veterans (in addition to veterans' preference). While we do not 
have a position on the legislation at this time, pursuant to 
the Committee's request, we would like to provide the Committee 
with an understanding of the practical implications of the 
legislation. The legislation would allow heads of Executive 
agencies to ``appoint a member of the uniformed services who is 
honorably discharged to a position in the civil service without 
regard to sections 5 U.S.C. Sec. Sec. 3301 through 3330c during 
the 180-day period beginning on the date that the individual is 
honorably discharged, if that individual is otherwise qualified 
for the position.''
    It is important to note that S. 951 might impact 
preference-eligible veterans who may also be eligible under the 
other hiring authorities presently available to veterans. For 
example, a non-preference veteran selected under this authority 
over a disabled veteran who otherwise might be selected under 
the 30 percent or More Disabled Veterans authority, or who 
might receive his or her preference under the competitive 
examining process. The non-disabled veteran who is unable to 
secure a position through the authority created by S. 951 would 
still be eligible under the VRA authority.
    There are a few provisions in 5 U.S.C. Sec. Sec. 3301 
through 3330c that would be impacted by this legislation. These 
provisions establish veterans' preference in hiring. Veterans' 
preference in its present form comes from the Veterans' 
Preference Act of 1944, as amended, and is codified in various 
provisions of title 5, United States Code. By law, veterans who 
are disabled or who served on active duty in the Armed Forces 
during certain specified time periods or in military campaigns 
are entitled to preference over others in hiring from 
competitive lists of eligibles and also in retention during 
reductions in force.\2\
---------------------------------------------------------------------------
    \2\For more details on who is eligible for veterans' preference, 
please visit http://www.opm.gov/staffingPortal/Vetguide.asp#2When.
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    However, veterans' preference is not available to all 
members of the uniformed services who are honorably discharged. 
Under this legislation, non-preference eligible veterans would 
be afforded the same newly created appointment authority as 
preference eligible veterans.
    Similarly, the distinction between the preferences for non-
disabled and disabled veterans was conceived as a beneficial 
preference for disabled veterans. Veterans' preference in its 
current form acknowledges the larger obligation owed to 
disabled veterans. The language in the legislation that would 
allow for the appointment of a member of the uniformed services 
``without regard to sections 3301 through 3330c'' would create 
an authority without distinction between disabled and non-
disabled veterans.
    5 U.S.C. Sec. 3321 creates a probationary period which 
applies to all Federal employees who are appointed to positions 
in the competitive service. The language of this legislation 
would remove the probationary period for any member of the 
uniformed services who is appointed under the authority 
proposed by this legislation. Similarly, 5 U.S.C. Sec. 3328 
outlines the requirements for Selective Service registration 
for individuals who are seeking Federal employment. This 
requirement would also not apply to individuals who are 
appointed under the authority proposed by this legislation.
    Finally, individuals who have a preference eligibility are 
afforded administrative redress under 5 U.S.C. Sec. Sec. 3330a 
through 3330c. The administrative redress enables individuals 
with veterans' preference who allege violations of their hiring 
rights to file a complaint with the Secretary of Labor, to 
pursue judicial redress, and to seek legal remedy. Individuals 
appointed under the authority proposed by this legislation 
would not be able to avail themselves of the protections of 5 
U.S.C. Sec. Sec. 3330a through 3330c.
    The current veterans' preference statutes reflect a policy 
decision to differentiate between disabled and non-disabled 
veterans, a distinction that is not present in this 
legislation.
    Additionally, S. 951 would create a conflict between 
individuals entitled to preference, and those who are not. As a 
result, this would create a bypass around the application of 
veterans' preference in both the competitive hiring process as 
well as for positions excepted from the competitive hiring 
process.

           *       *       *       *       *       *       *

                        Changes in Existing Law

    In compliance with paragraph 12 of Rule XXVI of the 
Standing Rules of the Senate, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italic, existing law in which no change is 
proposed is shown in roman).

                   Title 5. Government Organization 
and Employees

           *       *       *       *       *       *       *

Part III. Employees

           *       *       *       *       *       *       *

Subpart B. Employment and Retention

           *       *       *       *       *       *       *

           Chapter 33. Examination, Selection, and Placement

SEC.

       SUBCHAPTER I. EXAMINATION, CERTIFICATION, AND APPOINTMENT

3301. CIVIL SERVICE; GENERALLY.

           *       *       *       *       *       *       *

3330C. PREFERENCE ELIGIBLES; REMEDY.

3330D. HONORABLY DISCHARGED MEMBERS OF THE UNIFORMED SERVICES.

           *       *       *       *       *       *       *

SEC. 3330C. PREFERENCE ELIGIBLES; REMEDY

           *       *       *       *       *       *       *

SEC. 3330D. HONORABLY DISCHARGED MEMBERS OF THE UNIFORMED SERVICES

    The head of an Executive agency may appoint a member of the 
uniformed services who is honorably discharged to a position in 
the civil service without regard to sections 3301 through 3320, 
3322 through 3327, 3329, and 3330 during the 180-day period 
beginning on the date that the individual is honorably 
discharged, if that individual is otherwise qualified for the 
position.

           *       *       *       *       *       *       *

Title 10. Armed Forces

           *       *       *       *       *       *       *

Subtitle A. General Military Law

           *       *       *       *       *       *       *

Part II. Personnel

           *       *       *       *       *       *       *

   Chapter 58. Benefits and Services for Members Being Separated or 
Recently Separated

           *       *       *       *       *       *       *

SEC. 1142. PRESEPARATION COUNSELING; TRANSMITTAL OF MEDICAL RECORDS TO 
                    DEPARTMENT OF VETERANS AFFAIRS

    (a) Requirement.--(1) * * *
    (2) In carrying out this section, the Secretary concerned 
[may] shall use the services available under section 1144 of 
this title.

           *       *       *       *       *       *       *

SEC. 1144. EMPLOYMENT ASSISTANCE, JOB TRAINING ASSISTANCE, AND OTHER 
                    TRANSITIONAL SERVICES: DEPARTMENT OF LABOR

    (a) * * *

           *       *       *       *       *       *       *

    [(c) Participation.--The Secretary of Defense and the 
Secretary of Homeland Security shall encourage and otherwise 
promote maximum participation by members of the armed forces 
eligible for assistance under the program carried out under 
this section.]
    (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 such groups or classifications of members as 
the Secretaries consider appropriate after consultation with 
the Secretary of Labor and the Secretary of Veterans Affairs.

           *       *       *       *       *       *       *

    (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.

           *       *       *       *       *       *       *

Title 38. Veterans' Benefits

           *       *       *       *       *       *       *

Part III. Readjustment and Related Benefits

           *       *       *       *       *       *       *

   Chapter 31. Training and Rehabilitation for Veterans with Service-
                         Connected Disabilities

SEC.

3100. PURPOSES.

           *       *       *       *       *       *       *

3106. INITIAL AND EXTENDED EVALUATIONS; DETERMINATIONS REGARDING 
                    SERIOUS EMPLOYMENT HANDICAP; PROGRAM ASSESSMENT AND 
                    FOLLOW-UP.

           *       *       *       *       *       *       *

SEC. 3102. BASIC ENTITLEMENT

    [A person] (a) In General.--A person shall be entitled to a 
rehabilitation program under the terms and conditions of this 
chapter if--

           *       *       *       *       *       *       *

    (b) Additional Rehabilitation Programs for Persons Who Have 
Exhausted Rights to Unemployment Benefits Under State Law.--(1) 
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
          (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).

SEC. 3103. PERIODS OF ELIGIBILITY

    (a) Except as provided [in subsection (b), (c), or (d)] in 
subsection (b), (c), (d), or (e) of this section, a 
rehabilitation program may not be afforded to a veteran under 
this chapter after the end of the twelve-year period beginning 
on the date of such veteran's discharge or release from active 
military, naval, or air service.

           *       *       *       *       *       *       *

    (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.
    (f) [(e)] In any case in which the Secretary has determined 
that a veteran was prevented from participating in a vocational 
rehabilitation program under this chapter within the period of 
eligibility otherwise prescribed in this section as a result of 
being ordered to serve on active duty under section 688, 
12301(a), 12301(d), 12301(g), 12302, or 12304 of title 10, such 
period of eligibility shall not run for the period of such 
active duty service plus four months.

           *       *       *       *       *       *       *

SEC. 3105. DURATION OF REHABILITATION PROGRAMS

    (a) * * *
    (b) [Except as provided in subsection (c) of this section,] 
(1) Except as provided in paragraph (2) and in subsection (c), 
the period of a vocational rehabilitation program for a veteran 
under this chapter following a determination of the current 
reasonable feasibility of achieving a vocational goal may not 
exceed forty-eight months, except that the counseling and 
placement and postplacement services described in section 
3104(a)(2) and (5) of this title may be provided for an 
additional period not to exceed eighteen months in any case in 
which the Secretary determines the provision of such counseling 
and services to be necessary to accomplish the purposes of a 
rehabilitation program in the individual case.
    (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 24 months.

           *       *       *       *       *       *       *

SEC. 3106. INITIAL AND EXTENDED EVALUATIONS; DETERMINATIONS REGARDING 
                    SERIOUS EMPLOYMENT HANDICAP; PROGRAM ASSESSMENT AND 
                    FOLLOW-UP

           *       *       *       *       *       *       *

    (g) For each rehabilitation program pursued by a veteran 
under this chapter, the Secretary shall contact such veteran 
not later than 180 days after the date on which such veteran 
completes such rehabilitation program or terminates 
participation in such rehabilitation program and not less 
frequently than once every 180 days thereafter for a period of 
one year to ascertain the employment status of the veteran and 
assess such rehabilitation program.

           *       *       *       *       *       *       *

SEC. 3116. PROMOTION OF EMPLOYMENT AND TRAINING OPPORTUNITIES

    (a) * * *
    (b)(1) The Secretary, pursuant to regulations prescribed in 
accordance with paragraph (3) of this subsection, may make 
payments to employers for providing on-job training to veterans 
[who have been rehabilitated to the point of employability] in 
individual cases in which the Secretary determines that such 
payment is necessary to obtain needed on-job training or to 
begin employment. Such payments may not exceed the direct 
expenses incurred by such employers in providing such on-job 
training or employment opportunity.

           *       *       *       *       *       *       *

Chapter 36. Administration of Educational Benefits

           *       *       *       *       *       *       *

Subchapter II. Miscellaneous Provisions

           *       *       *       *       *       *       *

SEC. 3695. LIMITATION ON PERIOD OF ASSISTANCE UNDER TWO OR MORE 
                    PROGRAMS

    (a) * * *
    (b) [No person] (1) Except as provided in paragraph (2), no 
person may receive assistance under chapter 31 of this title in 
combination with assistance under any of the provisions of law 
cited in subsection (a) of this section in excess of 48 months 
(or the part-time equivalent thereof) unless the Secretary 
determines that additional months of benefits under chapter 31 
of this title are necessary to accomplish the purposes of a 
rehabilitation program (as defined in section 3101(5) of this 
title) in the individual case.
    (2) Paragraph (1) shall not apply with respect to a 
rehabilitation program described in section 3103(e)(2) of this 
title.

           *       *       *       *       *       *       *

Chapter 37. Housing and Small Business Loans

           *       *       *       *       *       *       *

Subchapter III. Administrative Provisions

           *       *       *       *       *       *       *

SEC. 3729. LOAN FEE

    (a) * * *
    (b) Determination of Fee.--
          (1) * * *
          (2) The loan fee table referred to in paragraph (1) 
        is as follows:

                             Loan Fee Table

                                                                Other
             Type of loan                Active   Reservist    obligor
                                          duty                 veteran

(A)(i) Initial loan described in           2.00       2.75           NA
 section 3710(a) to purchase or
 construct a dwelling with 0-down, or
 any other initial loan described in
 section 3710(a) other than with 5-
 down or 10-down (closed before
 January 1, 2004)....................

               *      *      *      *      *      *      *
(B)(i) Subsequent loan described in      [3.00]     [3.00]           NA
 section 3710(a) to purchase or
 construct a dwelling with 0-down, or
 any other subsequent loan described
 in section 3710(a) (closed before
 [January 1, 2004] October 1, 2011)..
                                           3.30       3.30
(B)(ii) Subsequent loan described in     [3.30]     [3.30]           NA
 section 3710(a) to purchase or
 construct a dwelling with 0-down, or
 any other subsequent loan described
 in section 3710(a) (closed on or
 after [January 1, 2004, and before
 October 1, 2011] October1, 2011, and
 before October 1, 2014).............
                                           3.00       3.00
[(B)(iii) Subsequent loan described        2.15       2.15          NA]
 in section 3710(a) to purchase or
 construct a dwelling with 0-down, or
 any other subsequent loan described
 in section 3710(a) (closed on or
 after October 1, 2011 and before
 October 1, 2013)....................
(B)(iii) [(iv)] Subsequent loan            1.25       1.25           NA
 described in section 3710(a) to
 purchase or construct a dwelling
 with 0-down, or any other subsequent
 loan described in section 3710(a)
 (closed on or after [October 1,
 2013] October 1, 2014)..............

                                                             

           *       *       *       *       *       *       *
    Chapter 41. Job Counseling, Training, and Placement Service for 
                                Veterans

SEC.

4100. FINDINGS.

           *       *       *       *       *       *       *

4104. LOCAL VETERANS' EMPLOYMENT REPRESENTATIVES.

4104A. COLLABORATIVE VETERANS' TRAINING, MENTORING, AND PLACEMENT 
                    PROGRAM.

           *       *       *       *       *       *       *

SEC. 4103A. DISABLED VETERANS' OUTREACH PROGRAM

    (a) Requirement for Employment by States of a Sufficient 
Number of Specialists.--
          (1) Subject to approval by the Secretary, a State 
        shall employ such full- or part-time disabled veterans' 
        outreach program specialists as the State determines 
        appropriate and efficient to carry out intensive 
        services and facilitate placements under this chapter 
        to meet the employment needs of eligible veterans with 
        the following priority in the provision of services:

           *       *       *       *       *       *       *

          (2) * * *
          (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.

           *       *       *       *       *       *       *

SEC. 4104. LOCAL VETERANS' EMPLOYMENT REPRESENTATIVES

           *       *       *       *       *       *       *

SEC. 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 3 organizations, for periods 
of 2 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 6 months after the date of 
enactment of the Hiring 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 Hiring Heroes Act of 2011, the Secretary shall--
          (A) conduct an assessment of the performance of the 
        grant recipients, disabled veterans' outreach 
        specialists, and local 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 the Committee on Veterans' Affairs of the Senate 
        and the Committee on Veterans' Affairs 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.

           *       *       *       *       *       *       *

SEC. 4114. CREDENTIALING AND LICENSURE OF VETERANS: DEMONSTRATION 
                    PROJECT

    (a) Demonstration Project Authorized.--The Assistant 
Secretary for Veterans' Employment and Training [may] shall 
carry out a demonstration project on credentialing in 
accordance with this section for the purpose of facilitating 
the seamless transition of members of the Armed Forces from 
service on active duty to civilian employment.
    (b) Identification of Military Occupational Specialties and 
Associated Credentials and Licenses.--
          (1) The [Assistant Secretary shall] Assistant 
        Secretary of Veterans' Employment and Training shall, 
        in consultation with the Assistant Secretary for 
        Employment and Training, select not less than [10 
        military] five military occupational specialties for 
        purposes of the demonstration project. Each specialty 
        so selected by the Assistant Secretary of Veterans' 
        Employment and Training shall require a skill or set of 
        skills that is required for civilian employment in an 
        industry with high growth or high worker demand.

           *       *       *       *       *       *       *

    [(d) Task Force.--The Assistant Secretary may establish a 
task force of individuals with appropriate expertise to provide 
assistance to the Assistant Secretary in carrying out this 
section.
    [(e) Consultation.--In carrying out this section, the 
Assistant Secretary shall consult with the Secretary of 
Defense, the Secretary of Veterans Affairs, appropriate Federal 
and State officials, private-sector employers, labor 
organizations, and industry trade associations.
    [(f) Contract Authority.--For purposes of carrying out any 
part of the demonstration project under this section, the 
Assistant Secretary may enter into a contract with a public or 
private entity with appropriate expertise.
    [(g) Period of Project.--The period during which the 
Assistant Secretary may carry out the demonstration project 
under this section shall be the period beginning on the date 
that is 60 days after the date of the enactment of the Veterans 
Benefits, Health Care, and Information Technology Act of 2006 
and ending on September 30, 2009.
    [(h) Funding.--The Assistant Secretary may carry out the 
demonstration project under this section utilizing unobligated 
funds that are appropriated in accordance with the 
authorization set forth in section 4106 of this title.]
    (d) Period of Project.--The period during which the 
Assistance 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 Hiring Heroes Act of 2011.

           *       *       *       *       *       *       *

                          Wounded Warrior Act

               (Public Law 110-181; 10 U.S.C. 1071 note)

Title XVI

           *       *       *       *       *       *       *

                    Subtitle C. Health Care Matters

SEC. 1631. MEDICAL CARE AND OTHER BENEFITS FOR MEMBERS AND FORMER 
                    MEMBERS OF THE ARMED FORCES WITH SEVERE INJURIES OR 
                    ILLNESSES.

           *       *       *       *       *       *       *

    (b) Rehabilitation and Vocational Benefits.--
          (1)  * * *
          (2) Sunset.--The Secretary of Veterans Affairs may 
        not provide benefits to a member of the Armed Forces 
        under this subsection after [December 31, 2012] 
        December 31, 2014, if the Secretary has not provided 
        benefits to the member under this subsection before 
        that date.

           *       *       *       *       *       *       *

                                  
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