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[House Report 111-451]
[From the U.S. Government Publishing Office]

111th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 2d Session                                                     111-451

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

 
         VETERANS EMPLOYMENT AND HOME PRESERVATION ACT OF 2010

                                _______
                                

 March 22, 2010.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

  Mr. Filner, from the Committee on Veterans' Affairs, submitted the 
                               following

                              R E P O R T

                        [To accompany H.R. 3976]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Veterans' Affairs, to whom was referred 
the bill (H.R. 3976) to extend certain expiring provisions 
providing enhanced protections for servicemembers relating to 
mortgages and mortgage foreclosure, having considered the same, 
report favorably thereon with amendments and recommend that the 
bill as amended do pass.

                                CONTENTS

                                                                   Page
Amendment........................................................     2
Purpose and Summary..............................................     2
Background and Need for Legislation..............................     3
Hearings.........................................................     3
Subcommittee Consideration.......................................     4
Committee Consideration..........................................     4
Committee Votes..................................................     4
Committee Oversight Findings.....................................     5
Statement of General Performance Goals and Objectives............     5
New Budget Authority, Entitlement Authority, and Tax Expenditures     5
Earmarks and Tax and Tariff Benefits.............................     5
Committee Cost Estimate..........................................     5
Congressional Budget Office Cost Estimate........................     5
Federal Mandates Statement.......................................     7
Advisory Committee Statement.....................................     7
Constitutional Authority Statement...............................     7
Applicability to Legislative Branch..............................     8
Section-by-Section Analysis of the Legislation...................     8
Changes in Existing Law Made by the Bill, as Reported............     8

                               Amendment

    The amendments are as follows:
    Strike all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE.

  This Act may be cited as the ``Veterans Employment and Home 
Preservation Act of 2010''.

SEC. 2. EXTENSION OF ENHANCED PROTECTIONS FOR SERVICEMEMBERS RELATING 
                    TO MORTGAGES AND MORTGAGE FORECLOSURE UNDER 
                    SERVICEMEMBERS CIVIL RELIEF ACT.

  (a) Extension.--Paragraph (2) of section 2203(c) of the Housing and 
Economic Recovery Act of 2008 (Public Law 110-289) is amended--
          (1) by striking ``December 31, 2010'' and inserting 
        ``December 31, 2015''; and
          (2) by striking ``January 1, 2011'' and inserting ``January 
        1, 2016''.
  (b) Protection for Surviving Spouse.--
          (1) In general.--Section 303 of the Servicemembers Civil 
        Relief Act (50 U.S.C. App. 533) is amended by adding at the end 
        the following new subsection:
  ``(e) Protection for Surviving Spouse.--With respect to a 
servicemember who dies while in military service and whose death is 
service-connected, this section shall apply to the surviving spouse of 
the servicemember if such spouse is the successor in interest to 
property covered under subsection (a).''.
          (2) Effective date.--Subsection (e) of section 303 of such 
        Act, as added by paragraph (1), shall apply to a surviving 
        spouse of a servicemember whose death is on or after the date 
        of the enactment of this Act.

SEC. 3. TEMPORARY REDUCTION OF REQUIRED AMOUNT OF WAGES FOR ON-THE-JOB 
                    TRAINING PROGRAMS.

  (a) In General.--
          (1) Reducing requirement.--Clause (ii) of section 
        3677(b)(1)(A) of title 38, United States Code, is amended by 
        striking ``85 per centum'' and inserting ``60 percent''.
          (2) Effective date.--The amendment made by paragraph (1) 
        shall take effect on October 1, 2010, and shall apply to a 
        veteran who enrolls in a program of training on the job 
        approved under section 3677 of such title on or after such 
        date.
  (b) Sunset.--
          (1) Reversion.--Effective October 1, 2013, clause (ii) of 
        section 3677(b)(1)(A) of title 38, United States Code, as 
        amended by subsection (a) of this section, is amended by 
        striking ``60 percent'' and inserting ``85 percent''.
          (2) Application.--The amendment made by paragraph (1) shall 
        apply to a veteran who enrolls in a program of training on the 
        job approved under section 3677 of such title on or after 
        October 1, 2013.
  (c) GAO Report.--Not later than October 1, 2013, the Comptroller 
General of the United States shall submit to the Committee on Veterans' 
Affairs of the House of Representatives and the Committee on Veterans' 
Affairs of the Senate a report on the effects of the amendment made by 
subsection (a)(1) that reduces the wage increase requirement under 
section 3677(b)(1)(A)(ii) of title 38, United States Code.

  Amend the title so as to read:

    A bill to extend certain expiring provisions providing 
enhanced protections for servicemembers relating to mortgages 
and mortgage foreclosure, and for other purposes.

                          Purpose and Summary

    H.R. 3976 was introduced by Representative Thomas S. P. 
Perriello of Virginia, on October 29, 2009. H.R. 3976, as 
amended, would amend Public Law 110-289 (122 Stat. 2654), the 
``Housing and Economic Recovery Act of 2008,'' by extending 
through December 31, 2015, specified protections for 
servicemembers relating to mortgages and mortgage foreclosures. 
In addition, H.R. 3976 was amended to include the provisions of 
H.R. 4079, which would amend title 38, United States Code, to 
temporarily reduce the increase in wages paid by employers to 
veterans enrolled in on-the-job training (OJT) programs. H.R. 
4079 was introduced by Representative Thomas S. P. Perriello of 
Virginia on November 16, 2009.

                  Background and Need for Legislation

    The ``Housing and Economic Recovery Act of 2008,'' Public 
Law 110-289 (122 Stat. 2654), amended the Servicemembers Civil 
Relief Act (50 U.S.C. App. 501 et seq.)to provide 
servicemembers protection against mortgage foreclosure and extended the 
period for an extension of stay of proceedings from 90 days to nine 
months. The extension for protection against foreclosure is slated to 
expire on December 31, 2010, and the extension of the period for a stay 
of proceedings is due to expire on January 1, 2011.
    H.R. 3976, would amend section 2203 of Public Law 110-289 
(122 Stat. 2654, 2849) by extending those enhanced protections 
for servicemembers relating to mortgages and mortgage 
foreclosure under Servicemembers Civil Relief Act for an 
additional five years. This bill also allows surviving spouses 
of servicemembers who have died while in military service, to 
receive protection against mortgage foreclosure and a stay of 
proceedings if the individual is the successor in interest to 
the servicemember's property and the servicemember's death was 
service-connected. The provisions of the bill also would be 
effective on or after date of enactment.
    Section 3 of H.R. 3976, as amended to include provisions 
from H.R. 4079, would amend section 3677 of title 38, United 
States Code, to reduce the final statutory on-the-job training 
wage increase from 85 percent to 60 percent of a fully 
qualified employee to allow additional businesses to 
participate in this program. The National Association of State 
Approving Agencies stated that due to the economic climate, 
many businesses are unable to participate in the OJT training 
program due to the statutory requirement that the employer must 
increase the wage paid to a veteran participating in OJT. That 
inability to increase the wages by the statutory amount has 
resulted in fewer OJT opportunities for veterans. Currently, an 
employer is required to provide a beginning wage of at least 50 
percent of the wage for fully-trained employees, therefore only 
a ten percent increase wage is required but this increase can 
be exceeded at the employer's discretion.
    As part of a three-year pilot program, the Government 
Accountability Office would be required to submit a report to 
Congress on the effects of reducing the wage increase 
requirements at the end of the pilot program.

                                Hearings

    On February 25, 2010, the Subcommittee on Economic 
Opportunity conducted a legislative hearing on various bills 
introduced during the 111th Congress, including H.R. 3976 and 
H.R. 4079. The Following witnesses testified: The Honorable 
John J. Hall of New York; The Honorable Adam H. Putnam of 
Florida; The Honorable Joe Sestak of Pennsylvania; The 
Honorable Adam Smith of Washington; The Honorable Michael R. 
Turner of Ohio; Mr. Robert W. Madden, Assistant Director, 
National Economic Commission, The American Legion; Mr. Justin 
Brown, Legislative Associate, National Legislative Service, 
Veterans of Foreign Wars; Mr. Timothy S. Embree, Legislative 
Associate, Iraq and Afghanistan Veterans of America; Mr. James 
Bombard, Legislative Director, National Association of State 
Approving Agencies; Mr. Mark E. Sullivan, Law Offices of Mark 
E. Sullivan, P.A.; Col. Shawn Shumake, U.S. Army, Director, 
Office of Legal Policy, Office of the Under Secretary of 
Defense (Personnel and Readiness), Program Integration and 
Legal Policy, U.S. Department of Defense; Mr. Keith M. Wilson, 
Director of Education Service, Veterans Benefits 
Administration, U.S. Department of Veterans Affairs, 
accompanied by Mr. Mark Bologna, Director of Loan Guaranty 
Service, Veteran Benefits Administration, U.S. Department of 
Veterans Affairs and Mr. F. John Brizzi, Jr., Deputy Assistant 
General Counsel, U.S. Department of Veterans Affairs. Those 
submitting statements for the record included: The Honorable 
Bob Filner of California; The Honorable Ron Klein of Florida; 
Ms. Patricia E. Apy, American Bar Association; Ms. Stacy 
Bannerman of Medford, Oregon; Ms. Kelly Hruska, Government 
Relations Deputy Director, National Military Family 
Association; Mr. Brian Hawthorne, Legislative Director, Student 
Veterans of America; and, the Pennsylvania Association of 
Private School Administrators.

                       Subcommittee Consideration

    On March 4, 2010, the Subcommittee on Economic Opportunity 
met in open markup session and ordered favorably forwarded to 
the full Committee H.R. 3976, as amended, and H.R. 4079, as 
amended, by voice vote. During consideration of the bill the 
following amendment was considered:
        An amendment by Mr. Perriello of Virginia to make a 
        technical correction by striking the word ``Recover'' 
        and insert ``Recovery'' was agreed to by voice vote.
    During consideration of H.R. 4079 the following amendment 
in the nature of a substitute was considered:
        An amendment in the nature of a substitute by Mr. 
        Perriello of Virginia to make a change to the bill that 
        would cap the wage increase percentage at 60 percent, 
        terminate the program in three years, and require GAO 
        to submit a report to Congress was agreed to by voice 
        vote.

                        Committee Consideration

    On March 10, 2010, the full Committee met in an open markup 
session, a quorum being present, and ordered H.R. 3976, as 
amended, reported favorably to the House of Representatives, by 
voice vote. During consideration of the bill the following 
amendment was considered:
        An amendment in the nature of a substitute offered by 
        Mr. Perriello of Virginia incorporating the provisions 
        of H.R. 4079, as amended, and providing for a new short 
        title was agreed to by voice vote.

                            Committee Votes

    Clause 3(b) of rule XIII of the Rules of the House of 
Representatives requires the Committee to list the record votes 
on the motion to report the legislation and amendments thereto. 
There were no record votes taken on amendments or in connection 
with ordering H.R. 3976 reported to the House. A motion by Mr. 
Miller of Florida to order H.R. 3976,as amended, reported 
favorably to the House of Representatives was agreed to by voice vote.

                      Committee Oversight Findings

    In compliance with clause 3(c)(1) of rule XIII and clause 
(2)(b)(1) of rule X of the Rules of the House of 
Representatives, the Committee's oversight findings and 
recommendations are reflected in the descriptive portions of 
this report.

         Statement of General Performance Goals and Objectives

    In accordance with clause 3(c)(4) of rule XIII of the Rules 
of the House of Representatives, the Committee's performance 
goals and objectives are reflected in the descriptive portions 
of this report.

   New Budget Authority, Entitlement Authority, and Tax Expenditures

    In compliance with clause 3(c)(2) of rule XIII of the Rules 
of the House of Representatives, the Committee adopts as its 
own the estimate of new budget authority, entitlement 
authority, or tax expenditures or revenues contained in the 
cost estimate prepared by the Director of the Congressional 
Budget Office pursuant to section 402 of the Congressional 
Budget Act of 1974.

                  Earmarks and Tax and Tariff Benefits

    H.R. 3976 does not contain any congressional earmarks; 
limited tax benefits, or limited tariff benefits as defined in 
clause 9 of rule XXI of the Rules of the House of 
Representatives.

                        Committee Cost Estimate

    The Committee adopts as its own the cost estimate on H.R. 
3976 prepared by the Director of the Congressional Budget 
Office pursuant to section 402 of the Congressional Budget Act 
of 1974.

               Congressional Budget Office Cost Estimate

    Pursuant to clause 3(c)(3) of rule XIII of the Rules of the 
House of Representatives, the following is the cost estimate 
for H.R. 3976 provided by the Congressional Budget Office 
pursuant to section 402 of the Congressional Budget Act of 
1974:

                                     U.S. Congress,
                               Congressional Budget Office,
                                    Washington, DC, March 16, 2010.
Hon. Bob Filner,
Chairman, Committee on Veterans' Affairs,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 3976, the Veterans 
Employment and Home Preservation Act of 2010.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Camille 
Woodland.
            Sincerely,
                                      Douglas W. Elmendorf,
                                                          Director.
    Enclosure.

H.R. 3976--Veterans Employment and Home Preservation Act of 2010

    Summary: H.R. 3976 would temporarily loosen requirements 
necessary for veterans to receive benefit payments from the 
Department of Veterans Affairs (VA) for participating in on-
the-job training. CBO estimates that implementing the bill 
would increase direct spending by $9 million over the 2011-2020 
period.
    Pay-as-you-go procedures apply because enacting the 
legislation would affect direct spending.
    H.R. 3976 contains no intergovernmental mandates as defined 
in the Unfunded Mandates Reform Act (UMRA).
    H.R. 3976 would impose private-sector mandates, as defined 
in UMRA, on certain mortgage holders and other creditors. Based 
on information from industry sources, CBO expects that the cost 
of those mandates would fall below the annual threshold for 
private-sector mandates ($141 million in 2010, adjusted 
annually for inflation).
    Estimated cost to the Federal Government: The estimated 
budgetary impact of H.R. 3976 is shown in the following table. 
The costs of this legislation fall within budget function 700 
(veterans benefits and services).

--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                  By fiscal year, in millions of dollars--
                                                   -----------------------------------------------------------------------------------------------------
                                                     2011    2012    2013    2014    2015    2016    2017    2018    2019    2020   2011-2015  2011-2020
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                                                               CHANGES IN DIRECT SPENDING

Estimated Budget..................................       2       2       3       1       *       0       0       0       0       0         9          9
Authority Estimated Outlays.......................       2       2       3       1       *       0       0       0       0       0         9         9
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Note: * = less than $500,000. Annual costs do not sum to totals because of rounding.

    Basis of estimate: VA provides education benefits to 
certain veterans participating in on-the-job training programs. 
Under current law, for such programs to be eligible for 
coverage under veterans benefits, the employer must pay 
trainees a starting wage equaling at least 50 percent of the 
full-time wage for that position. That amount must steadily 
increase to at least 85 percent of the appropriate full-time 
wage by the last month of the program.
    Section 3 would temporarily reduce the requirement for 
final pay to no less than 60 percent for veterans who begin 
training in fiscal years 2011 through 2013. CBO expects that 
such a change would increase the number of on-the-job training 
programs that VA would approve for use of education benefits; 
thus, CBO estimates that an additional 260 veterans would 
receive an average of $7,000 in benefits from VA annually from 
2011 through 2015. CBO estimates that implementing H.R. 3976 
would increase direct spending by $9 million over the 2010-2020 
period.
    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. The net changes in outlays and revenues that are 
subject to those pay-as-you-go procedures are shown in the 
following table.

          CBO ESTIMATE OF PAY-AS-YOU-GO EFFECTS FOR H.R. 3976 AS ORDERED REPORTED BY THE HOUSE COMMITTEE ON VETERANS' AFFAIRS ON MARCH 10, 2010
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                                                                                    By fiscal year, in millions of dollars--
                                                      --------------------------------------------------------------------------------------------------
                                                        2010   2011   2012   2013   2014   2015   2016   2017   2018   2019   2020  2010-2015  2010-2020
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                                                               NET INCREASE IN THE DEFICIT

Statutory Pay-As-You-Go Impact.......................      0      2      2      3      1      0      0      0      0      0      0         9         9
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Note: Annual costs do not sum to totals because of rounding.

    Estimated impact on state, local, and tribal governments: 
H.R. 3976 contains no intergovernmental mandates as defined in 
UMRA and would impose no costs on state, local, or tribal 
governments.
    Estimated impact on the private sector: Section 2 would 
extend the expiration date by five years of enhanced 
protections for servicemembers under the Servicemembers Civil 
Relief Act (SCRA) relating to mortgages and mortgage 
foreclosures. Furthermore, it would extend mortgage-related 
protections under the SCRA to surviving spouses of 
servicemembers who die while in military service. Those changes 
would constitute mandates on mortgage holders. The cost of 
complying with these mandates would be the loss associated with 
delayed mortgage payments, delayed foreclosure, and interest-
rate limitations. Based on historical separation rates, 
foreclosure rates, and mortgage-interest rates, CBO expects 
that the cost of the mandate would be small relative to the 
annual threshold for private-sector mandates ($141 million in 
2010, adjusted annually for inflation).
    Estimate prepared by: Federal Costs: Camille Woodland and 
David Newman; 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.

                       Federal Mandates Statement

    The Committee adopts as its own the estimate of Federal 
mandates regarding H.R. 3976 prepared by the Director of the 
Congressional Budget Office pursuant to section 423 of the 
Unfunded Mandates Reform Act.

                      Advisory Committee Statement

    No advisory committees within the meaning of section 5(b) 
of the Federal Advisory Committee Act would be created by H.R. 
3976.

                   Constitutional Authority Statement

    Pursuant to clause 3(d)(1) of rule XIII of the Rules of the 
House of Representatives, the Committee finds that the 
Constitutional authority for H.R. 3976 is provided by Article 
I, section 8 of the Constitution of the United States.

                  Applicability to Legislative Branch

    The Committee finds that the legislation does not relate to 
the terms and conditions of employment or access to public 
services or accommodations within the meaning of section 
102(b)(3) of the Congressional Accountability Act.

             Section-by-Section Analysis of the Legislation

Section 1. Short title

    This section provides the short title of H.R. 3976, as 
amended, as the ``Veterans Employment and Home Preservation Act 
of 2010.''

Section 2. Extension of enhanced protections for servicemembers 
        relating to mortgages and mortgage foreclosure under 
        Servicemembers Civil Relief Act

    This section extends the protection against mortgage 
foreclosure of nine months until December 31, 2015, and 
maintains the stay of proceedings period of nine months until 
January 1, 2016.
    This section allows surviving spouses of servicemembers who 
have died while in military service and their death is service-
connected, to receive protection against mortgage foreclosure 
and a stay of proceedings if the individual is the successor in 
interest to the servicemember's property and the 
servicemember's death was service-connected.
    This section also establishes an effective date of on or 
after date of enactment of this Act.

Section 3. Temporary reduction of required amount of wages for on-the-
        job training programs

    This section reduces the wage increase from 85 percent to 
60 percent with the wage increase taking place no later than 
the last full month of the training period. This section 
provides an effective date of October 1, 2010, and would apply 
to individuals participating in this program on or after such 
date. This section sunsets the pilot program on October 1, 
2013, and requires that U.S. Government Accountability Office 
submit a report to Congress on the effect of reducing the wage 
increase requirements.

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italic, existing law in which no change is 
proposed is shown in roman):

     SECTION 2203 OF THE HOUSING AND ECONOMIC RECOVERY ACT OF 2008

SEC. 2203. ENHANCEMENT OF PROTECTIONS FOR SERVICEMEMBERS RELATING TO 
                    MORTGAGES AND MORTGAGE FORECLOSURES.

  (a) * * *

           *       *       *       *       *       *       *

  (c) Effective Date; Sunset.--
          (1) * * *
          (2) Sunset.--The amendments made by subsection (a) 
        shall expire on [December 31, 2010] December 31, 2015. 
        Effective [January 1, 2011] January 1, 2016, the 
        provisions of subsections (b) and (c) of section 303 of 
        the Servicemembers Civil Relief Act, as in effect on 
        the day before the date of the enactment of this Act, 
        are hereby revived.
                              ----------                              

                    SERVICEMEMBERS CIVIL RELIEF ACT

           *       *       *       *       *       *       *
 TITLE III--RENT, INSTALLMENT CONTRACTS, MORTGAGES, LIENS, ASSIGNMENT, 
LEASES

           *       *       *       *       *       *       *

SEC. 303. MORTGAGES AND TRUST DEEDS.

  (a) * * *

           *       *       *       *       *       *       *

  (e) Protection for Surviving Spouse.--With respect to a 
servicemember who dies while in military service and whose 
death is service-connected, this section shall apply to the 
surviving spouse of the servicemember if such spouse is the 
successor in interest to property covered under subsection (a).

           *       *       *       *       *       *       *

                              ----------                              

              SECTION 3677 OF TITLE 38, UNITED STATES CODE

Sec. 3677. Approval of training on the job

  (a) * * *
  (b)(1) The training establishment offering training which is 
desired to be approved for the purposes of this chapter must 
submit to the appropriate State approving agency a written 
application for approval which, in addition to furnishing such 
information as is required by the State approving agency, 
contains a certification that--
          (A) the wages to be paid the eligible veteran or 
        person (i) upon entrance into training, are not less 
        than wages paid nonveterans in the same training 
        position and are at least 50 per centum of the wages 
        paid for the job for which the veteran or person is to 
        be trained, and (ii) such wages will be increased in 
        regular periodic increments until, not later than the 
        last full month of the training period, they will be at 
        least [85 per centum] 60 percent of the wages paid for 
        the job for which such eligible veteran or person is 
        being trained; and

           *       *       *       *       *       *       *

 [Effective October 1, 2010, clause (ii) of section 3677(b)(1)(A), as 
amended by section 3(a) of H.R. 3976, appears below. Effective October 
 1, 2013, section 3(b) of H.R. 3976, provides for an amendment to such 
                          clause as follows:]

Sec. 3677. Approval of training on the job

  (a) * * *
  (b)(1) The training establishment offering training which is 
desired to be approved for the purposes of this chapter must 
submit to the appropriate State approving agency a written 
application for approval which, in addition to furnishing such 
information as is required by the State approving agency, 
contains a certification that--
          (A) the wages to be paid the eligible veteran or 
        person (i) upon entrance into training, are not less 
        than wages paid nonveterans in the same training 
        position and are at least 50 per centum of the wages 
        paid for the job for which the veteran or person is to 
        be trained, and (ii) such wages will be increased in 
        regular periodic increments until, not later than the 
        last full month of the training period, they will be at 
        least [60 percent] 85 percent of the wages paid for the 
        job for which such eligible veteran or person is being 
        trained; and

           *       *       *       *       *       *       *

                                  
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