II 

113TH CONGRESS 

1ST SESSION S. 922 

To require the Secretary of Labor to carry out a pilot program on providing 

wage subsidies to employers who employ certain veterans and members 

of the Armed Forces and require the Secretary of Veterans Affairs 

to carry out a pilot program on providing career transition services 

to young veterans, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

MAY 9, 2013 

Mr. SANDERS introduced the following bill; which was read twice and referred 

to the Committee on Veterans’ Affairs 

A BILL 

To require the Secretary of Labor to carry out a pilot program on providing wage subsidies to employers who employ certain veterans and members of the Armed Forces 

and require the Secretary of Veterans Affairs to carry 

out a pilot program on providing career transition services to young veterans, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Veterans Equipped for 

5 Success Act of 2013’’. 


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1 SEC. 2. PILOT PROGRAM ON PROVISION OF SUBSIDIES TO 

2 EMPLOYERS FOR EMPLOYMENT OF CERTAIN 

3 VETERANS AND MEMBERS OF THE ARMED 

4 FORCES. 

5 (a) IN GENERAL.—Commencing not later than Janu6 ary 1, 2014, the Secretary of Labor shall, acting through 

7 the Assistant Secretary of Labor for Veterans’ Employ8 ment and Training and in collaboration with the Secretary 

9 of Veterans Affairs, carry out a pilot program to assess 

10 the feasibility and advisability of providing subsidies to eli11 gible employers to employ eligible individuals— 

12 (1) to provide eligible individuals with valuable 

13 work experience; 

14 (2) to increase the skills of eligible individuals; 

15 and 

16 (3) to assist eligible individuals in obtaining 

17 long-term employment. 

18 (b) ELIGIBLE INDIVIDUAL.—For purposes of the 

19 pilot program, an eligible individual is an individual who— 

20 (1) is— 

21 (A) a veteran of the Armed Forces who 

22 was discharged or released from service therein 

23 under conditions other than dishonorable; or 

24 (B) a member of a reserve component of 

25 the Armed Forces (including the National 

26 Guard) who— 


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1 (i) served on active duty in the Armed 

2 Forces (other than active duty for train3 ing) for more than 180 consecutive days 

4 during the two-year period ending on the 

5 date of commencement of the participation 

6 in the pilot program; and 

7 (ii) is not serving on active duty on 

8 the date of commencement of participation 

9 in the pilot program; 

10 (2) is, at the time at which the individual ap11 plies for participation in the pilot program— 

12 (A) 18 years of age or more but not more 

13 than 34 years of age; or 

14 (B) 55 years of age or more but not more 

15 than 64 years of age; 

16 (3) is not in receipt of compensation under 

17 chapter 11 of title 38, United States Code, by rea18 son of unemployability; 

19 (4) is not enrolled on the date of commence20 ment of participation in the pilot program in a Fed21 eral or State job training program; and 

22 (5) is considered by the Secretary to be unem23 ployed or underemployed. 

24 (c) ELIGIBLE EMPLOYER.— 


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1 (1) IN GENERAL.—For purposes of the pilot 

2 program, an eligible employer is an employer deter3 mined by the Secretary to meet such criteria for 

4 participation in the pilot program as the Secretary 

5 shall establish for purposes of the pilot program, ex6 cept that an employer may not be determined to be 

7 an eligible employer for that purpose if the em8 ployer— 

9 (A) has been investigated or subject to a 

10 case or action by the Federal Trade Commis11 sion during the 180-day period ending on the 

12 date the employer would otherwise commence 

13 participation in the pilot program; 

14 (B) has not been in good standing with a 

15 State business bureau during the period de16 scribed in subparagraph (A); 

17 (C) is an agency of the Federal Govern18 ment or a State or local government; 

19 (D) is delinquent with respect to payment 

20 of any taxes or employer contributions de21 scribed under sections 3301 and 3302(a)(1) of 

22 the Internal Revenue Code of 1986 (26 U.S.C. 

23 3301 and 3302(a)(1)) or with respect to any re24 lated reporting requirement; 


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1 (E) has previously participated in the pilot 

2 program and, as determined by the Secretary, 

3 failed to abide by a requirement of the pilot 

4 program; 

5 (F) does not provide assurances to the 

6 Secretary at the time the employer would other7 wise commence participation in the pilot pro8 gram that the employer will comply under the 

9 pilot program with the requirements for non10 displacement of current employees specified in 

11 paragraph (2); or 

12 (G) receives more than 75 percent of its 

13 revenue from the Federal Government or a 

14 State or local government. 

15 (2) NON-DISPLACEMENT OF CURRENT EMPLOY16 EES.—The requirements specified in this paragraph 

17 are the following: 

18 (A) That an employer shall not use an in19 dividual participating in the pilot program to 

20 displace any employee of the employer at the 

21 time of commencement of participation in the 

22 pilot program from employment or any employ23 ment benefits, including a partial displacement 

24 (such as a reduction in the hours of non-over25 time work, wages, or employment benefits). 


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1 (B) That an employer shall not permit an 

2 individual participating in the pilot program to 

3 perform work activities related to any job for 

4 which— 

5 (i) any other individual is on layoff 

6 from the same or any substantially equiva7 lent position; or 

8 (ii) the employer has terminated the 

9 employment of any employee or otherwise 

10 reduced the workforce of the employer with 

11 the intention of filling or partially filling 

12 the vacancy so created with the work ac13 tivities to be performed by the individual 

14 participating in the pilot program. 

15 (C) That an employer shall not create a 

16 job for an individual participating in the pilot 

17 program in a manner that will infringe in any 

18 way upon the opportunities for promotion of in19 dividuals employed by the employer on the date 

20 of the employer’s commencement of participa21 tion in the pilot program. 

22 (D) That— 

23 (i) an employer shall not, by means of 

24 assigning work activities under the pilot 

25 program, impair an existing contract for 


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1 services or a collective bargaining agree2 ment; and 

3 (ii) work activities that would be in4 consistent with the terms of a collective 

5 bargaining agreement shall not be under6 taken by an individual participating in the 

7 pilot program without the written concur8 rence of the labor organization that is sig9 natory to the collective bargaining agree10 ment. 

11 (d) DURATION AND NUMBER OF PARTICIPANTS.— 

12 (1) DURATION.—The Secretary shall carry out 

13 the pilot program during the three-year period be14 ginning on the date of the commencement of the 

15 pilot program. 

16 (2) NUMBER OF PARTICIPANTS.—Not more 

17 than 50,000 eligible individuals may concurrently 

18 participate in the pilot program. 

19 (e) LOCATIONS.— 

20 (1) IN GENERAL.—The Secretary shall carry 

21 out the pilot program in four locations selected by 

22 the Secretary for purposes of the pilot program from 

23 among areas with populations the Secretary deter24 mines have high concentrations of veterans. 


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1 (2) CONSULTATION WITH SECRETARY OF VET2 ERANS AFFAIRS.—In selecting locations under para3 graph (1), the Secretary of Labor may consult with 

4 the Secretary of Veterans Affairs, particularly with 

5 respect to determining which areas have populations 

6 with high concentrations of veterans. 

7 (f) SUBSIDIES.— 

8 (1) IN GENERAL.—For each eligible employer 

9 approved by the Secretary to participate in the pilot 

10 program who employs on a full-time basis an eligible 

11 individual approved by the Secretary to participate 

12 in the pilot program, the Secretary shall provide a 

13 subsidy for the employment of such eligible indi14 vidual by such eligible employer during such period 

15 as— 

16 (A) the eligible individual is employed by 

17 the eligible employer; 

18 (B) the eligible individual is participating 

19 in the pilot program; and 

20 (C) the eligible employer is participating in 

21 the pilot program. 

22 (2) AMOUNT.— 

23 (A) IN GENERAL.—Except as provided in 

24 subparagraph (B), a subsidy provided by the 

25 Secretary under the pilot program to an eligible 


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1 employer for the employment of an eligible indi2 vidual shall be an amount equal to— 

3 (i) except as provided in clause (ii), 

4 60 percent of the basic pay provided by the 

5 eligible employer under the pilot program 

6 to the eligible individual; and 

7 (ii) in the case in which the eligible 

8 employer provides employment that in9 cludes an apprenticeship (which must be 

10 approved for purposes of the pilot program 

11 not later than two years after the date of 

12 the commencement of the pilot program), 

13 75 percent of the basic pay provided by the 

14 eligible employer under the pilot program 

15 to the eligible individual. 

16 (B) MAXIMUM AMOUNT.—Except as pro17 vided in subparagraph (D), the aggregate 

18 amount of subsidy provided under the pilot pro19 gram to an eligible employer for the employ20 ment of an eligible individual may not exceed— 

21 (i) except as provided in clause (ii), 

22 $11,000; or 

23 (ii) in the case described in subpara24 graph (A)(ii), $14,000. 

25 (C) DISBURSEMENT OF PAYMENTS.— 


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1 (i) PAYMENTS ON QUARTERLY

2 BASIS.—Except as provided in clause (ii), 

3 subsidies paid to an eligible employer 

4 under subparagraph (A) shall be paid to 

5 the eligible employer on a quarterly basis. 

6 (ii) PAYMENTS ON MONTHLY BASIS.— 

7 In order to relieve financial burden on an 

8 eligible employer participating in the pilot 

9 program whom the Secretary determines 

10 has few employees, the Secretary may pay 

11 subsidies under subparagraph (A) to such 

12 employer on a monthly basis as the Sec13 retary considers appropriate. 

14 (D) ADDITIONAL HIRING INCENTIVE.—If 

15 an eligible employer who received a subsidy 

16 under the pilot program for the employment of 

17 an eligible individual hires such eligible indi18 vidual on a full-time basis following the comple19 tion of the participation of such eligible indi20 vidual in the pilot program, the Secretary shall 

21 pay such eligible employer an additional amount 

22 equal to 10 percent of the aggregate amount of 

23 subsidy paid to the eligible employer under sub24 paragraph (A) during the last six months of 

25 such eligible individual’s employment with such 


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1 eligible employer while participating in the pilot 

2 program. Any amount paid under this subpara3 graph shall not apply against the aggregate 

4 maximum amount specified in subparagraph 

5 (B). 

6 (E) APPRENTICESHIPS.—The Secretary 

7 may establish guidelines or criteria for the ap8 proval or disapproval of apprenticeships for 

9 purposes of the pilot program. 

10 (3) DURATION.—A subsidy provided to an eligi11 ble employer to employ an eligible individual under 

12 the pilot program shall be for the lesser of— 

13 (A) a period of one year; and 

14 (B) the duration of such eligible individ15 ual’s employment with the eligible employer. 

16 (4) CONSIDERATION CONCERNING RECEIPT OF

17 CONCURRENT SUBSIDIES.—In the case of an eligible 

18 employer who is already receiving one or more sub19 sidies under the pilot program for the employment 

20 of one or more eligible individuals, when determining 

21 whether to provide an additional subsidy to such em22 ployer to employ an additional eligible individual, the 

23 Secretary may take into consideration, if after hiring 

24 such additional eligible individual, the number of eli25 gible individuals for whom the employer is receiving 


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1 a subsidy under the pilot program would constitute 

2 more than 10 percent of the workforce of the eligible 

3 employer. 

4 (5) MINIMUM WAGE.—No eligible employer may 

5 receive a subsidy under the pilot program for the 

6 employment of an eligible individual if the rate of 

7 pay for such employment is less than the greater of 

8 the rate specified in section 6(a)(1) of the Fair 

9 Labor Standards Act of 1938 (29 U.S.C. 206(a)(1)) 

10 or the rate specified in the applicable State min11 imum wage law. 

12 (6) SENSE OF CONGRESS ON EXCLUSION OF

13 CERTAIN EMPLOYMENT.—It is the sense of Congress 

14 that an employer should not be provided a subsidy 

15 under the pilot program for employment of an eligi16 ble individual in a position under a contract, grant, 

17 or cooperative agreement with the Federal Govern18 ment or a State or local government that involves 

19 functions that are so inherently governmental that 

20 the position would not provide the eligible individual 

21 with experience, training, or skills necessary for em22 ployment in the private sector in a position not in23 volving such functions. 

24 (g) PARTICIPATION.— 

25 (1) APPLICATION.— 


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1 (A) IN GENERAL.—An eligible employer or 

2 an eligible individual seeking to participate in 

3 the pilot program shall submit to the Secretary 

4 an application therefor at such time and in 

5 such manner as the Secretary shall specify. 

6 (B) ELEMENTS.—Except as provided in 

7 subparagraph (C), each application submitted 

8 under subparagraph (A) shall contain such in9 formation as the Secretary may specify. 

10 (C) REQUIREMENTS OF ELIGIBLE EMPLOY11 ERS.—An application submitted by an eligible 

12 employer under subparagraph (A) shall include 

13 assurance that the eligible employer will comply 

14 with the requirements for non-displacement of 

15 current employees specified in subsection (c)(2) 

16 under the pilot program. 

17 (2) SELECTION.— 

18 (A) IN GENERAL.—The Secretary shall re19 view each application submitted by an applicant 

20 under paragraph (1) and approve or disapprove 

21 the applicant for participation in the pilot pro22 gram. 

23 (B) EMPLOYER SELECTION CONSIDER24 ATIONS.—In approving or disapproving an eligi25 ble employer for participation in the pilot proVerDate Mar 15 2010 03:18 May 14, 2013 Jkt 029200 PO 00000 Frm 00013 Fmt 6652 Sfmt 6201 E:\BILLS\S922.IS S922

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1 gram, the Secretary may consider past perform2 ance of the eligible employer with respect to the 

3 following: 

4 (i) Job training, basic skills training, 

5 and related activities. 

6 (ii) Fiscal accountability. 

7 (iii) Demonstration of a high potential 

8 for growth and long-term job creation. 

9 (C) CONSIDERATIONS CONCERNING SELEC10 TION OF FOR-PROFIT AND NOT-FOR-PROFIT EM11 PLOYERS.—The Secretary may consider approv12 ing both for-profit and not-for-profit employers 

13 who are eligible employers for participation in 

14 the pilot program. 

15 (D) CONSIDERATIONS CONCERNING PAR16 TICIPATION OF SMALL BUSINESS CONCERNS.— 

17 In selecting eligible employers for participation 

18 in the pilot program, the Secretary may con19 sider the extent to which small business con20 cerns are afforded opportunities to participate 

21 in the pilot program. 

22 (3) EARLY TERMINATION OR SEPARATION OF

23 ELIGIBLE INDIVIDUAL PARTICIPANTS BY SEC24 RETARY.—If the Secretary determines that an eligi25 ble individual participating in the pilot program is 


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1 not making satisfactory attendance in employment, 

2 or has been removed from placement for misconduct, 

3 the Secretary may terminate such eligible individ4 ual’s status as a participant in the pilot program 

5 and bar such eligible individual from further partici6 pation in the pilot program. 

7 (4) EMPLOYMENT STATUS.— 

8 (A) COMPENSATION FOR WORK INJU9 RIES.—An eligible individual employed by an el10 igible employer who receives a subsidy for such 

11 employment under the pilot program shall be 

12 deemed, during the period of such subsidy, an 

13 employee of the United States for the purposes 

14 of the benefits of chapter 81 of title 5, United 

15 States Code, but not for the purposes of laws 

16 administered by the Office of Personnel Man17 agement. 

18 (B) HEALTH BENEFITS.—For purposes of 

19 the Patient Protection and Affordable Care Act 

20 (Public Law 111–148), an eligible individual 

21 employed by an eligible employer shall be con22 sidered an employee of the Department of 

23 Labor and not the eligible employer during such 

24 period as the eligible employer receives a subVerDate Mar 15 2010 03:18 May 14, 2013 Jkt 029200 PO 00000 Frm 00015 Fmt 6652 Sfmt 6201 E:\BILLS\S922.IS S922

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1 sidy under the pilot program for the employ2 ment of such eligible individual. 

3 (h) TRANSPORTATION SUPPORT FOR PARTICIPATING

4 ELIGIBLE INDIVIDUALS.—In accordance with criteria es5 tablished by the Secretary for purposes of the pilot pro6 gram, the Secretary may pay an allowance based upon 

7 mileage, of any eligible individual whose employment is 

8 subsidized under the pilot program not in excess of 75 

9 miles to or from a facility of the eligible employer or other 

10 place in connection with such employment. 

11 (i) GRANTS TO ELIGIBLE ENTITIES.— 

12 (1) IN GENERAL.—The Secretary may award 

13 grants to not more than four eligible entities to as14 sist the Secretary in carrying out the pilot program. 

15 (2) ELIGIBLE ENTITIES.—For purposes of the 

16 pilot program, an eligible entity is a nonprofit orga17 nization. 

18 (3) CONSIDERATIONS.—In awarding grants 

19 under this subsection, the Secretary may consider 

20 whether an eligible entity— 

21 (A) has an understanding of the unemploy22 ment problems of eligible individuals and mem23 bers of the Armed Forces transitioning from 

24 service in the Armed Forces to civilian life; 


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1 (B) is familiar with a location selected 

2 under subsection (e) and has an understanding 

3 of employment in such location and employment 

4 assistance available to eligible individuals in 

5 such location; and 

6 (C) has the capability to assist the Sec7 retary in administering effectively the pilot pro8 gram and provide employment assistance to eli9 gible individuals. 

10 (4) USE OF FUNDS.—Amounts received by a re11 cipient of a grant under this subsection may be used 

12 as follows: 

13 (A) To assist the Secretary in carrying out 

14 the pilot program. 

15 (B) To recruit eligible employers and eligi16 ble individuals to participate in the pilot pro17 gram. 

18 (C) To coordinate and implement job 

19 placement and other employer outreach activi20 ties in connection with the pilot program. 

21 (D) To carry out such other activities as 

22 the Secretary considers appropriate for pur23 poses of the pilot program. 

24 (j) ADDITIONAL PILOT PROGRAM REQUIREMENTS.— 

25 Under the pilot program, the Secretary shall— 


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1 (1) develop an objective assessment process that 

2 will identify the work experience, skill levels, and in3 terests of eligible individuals participating in the 

4 pilot program; 

5 (2) ensure that employment and counseling 

6 services are available to eligible individuals partici7 pating in the pilot program, including by connecting 

8 eligible individuals with services available to the eli9 gible individuals through State or local employment 

10 service or other public agencies; 

11 (3) develop and implement procedures for eval12 uating job placement and employment of eligible in13 dividuals participating in the pilot program; and 

14 (4) carry out such other activities as the Sec15 retary considers appropriate for purposes of the pilot 

16 program. 

17 (k) OUTREACH.—The Secretary of Labor and the 

18 Secretary of Veterans Affairs shall jointly conduct a pro19 gram of outreach to inform eligible employers and eligible 

20 individuals about the pilot program and the benefits of 

21 participating in the pilot program. 

22 (l) MINIMIZATION OF ADMINISTRATIVE BURDEN ON

23 PARTICIPATING EMPLOYERS.—The Secretary of Labor 

24 shall take such measures as may be necessary to minimize 


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1 administrative burdens incurred by eligible employers in 

2 participating in the pilot program. 

3 (m) REPORTS.— 

4 (1) IN GENERAL.—Not later than 45 days after 

5 the completion of the first year of the pilot program 

6 and not later than 180 days after the completion of 

7 the second and third years of the pilot program, the 

8 Secretary shall submit to Congress a report on the 

9 pilot program. 

10 (2) CONTENTS.—Each report submitted under 

11 paragraph (1) shall include the following: 

12 (A) An evaluation of the pilot program. 

13 (B) The number and characteristics of in14 dividuals participating in the pilot program. 

15 (C) The number and characteristics of em16 ployers participating in the pilot program. 

17 (D) The number and types of positions of 

18 employment in which eligible individuals were 

19 placed under the pilot program. 

20 (E) The number of individuals who ob21 tained long-term full-time employment positions 

22 as a result of the pilot program, the hourly 

23 wage and nature of such employment, and if 

24 available, whether such individuals were still 


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1 employed in such positions three months after 

2 obtaining such positions. 

3 (F) A description of the outreach activities 

4 undertaken to raise awareness of the pilot pro5 gram by potential eligible individuals and eligi6 ble employers, and an assessment of the effec7 tiveness of such activities. 

8 (G) An assessment of the feasibility and 

9 advisability of providing subsidies to eligible 

10 employers to employ eligible individuals. 

11 (H) An assessment of the effect of the 

12 pilot program on earnings of eligible individuals 

13 and the employment of eligible individuals. 

14 (I) Such recommendations for legislative 

15 and administrative action as the Secretary con16 siders appropriate to improve the pilot program, 

17 to expand the pilot program, or to improve the 

18 employment of eligible individuals. 

19 (n) RELATION TO OTHER FEDERAL ASSISTANCE.— 

20 Notwithstanding any other provision of law, wages re21 ceived by an individual that are subsidized under the pilot 

22 program may not be used in any calculation to determine 

23 the eligibility of such individual for any Federal program 

24 for the purpose of obtaining child care assistance. 

25 (o) FUNDING LIMITATIONS.— 


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1 (1) WAGE SUBSIDIES.—Not less than 95 per2 cent of amounts appropriated or otherwise made 

3 available for the pilot program shall be used to pro4 vide subsidies under subsection (f). 

5 (2) ADMINISTRATION.—Not more than 5 per6 cent of amounts appropriated or otherwise made 

7 available for the pilot program may be used to ad8 minister the pilot program. 

9 (p) COORDINATION WITH WORK OPPORTUNITY TAX

10 CREDIT.—Section 51 of the Internal Revenue Code of 

11 1986 is amended by adding at the end the following new 

12 subsection: 

13 ‘‘(j) COORDINATION WITH PILOT PROGRAM ON PRO14 VISION OF SUBSIDIES TO EMPLOYERS FOR EMPLOYMENT

15 OF CERTAIN VETERANS AND MEMBERS OF ARMED

16 FORCES.—No credit shall be allowed under subsection (a) 

17 with respect to any wages paid to a qualified veteran if 

18 the taxpayer has received a subsidy under section 2(f) of 

19 the Veterans Equipped for Success Act of 2013 with re20 spect to such qualified veteran.’’. 

21 (q) DEFINITIONS.—In this section: 

22 (1) APPRENTICESHIP.—The term ‘‘apprentice23 ship’’ means a program of apprenticeship approved 

24 by the Office of Apprenticeship of the Department 

25 of Labor or a State apprenticeship as meeting the 


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1 standards of apprenticeship published by the Sec2 retary of Labor pursuant to section 2 of the Act of 

3 August 16, 1937 (popularly known as the ‘‘National 

4 Apprenticeship Act’’) (29 U.S.C. 50a). 

5 (2) FULL-TIME BASIS.—The term ‘‘full-time 

6 basis’’, with respect to employment, means employ7 ment of a minimum of 30 hours a week. 

8 (3) SMALL BUSINESS CONCERN.—The term 

9 ‘‘small business concern’’ has the meaning given 

10 that term under section 3(a) of the Small Business 

11 Act (15 U.S.C. 632(a)). 

12 SEC. 3. PILOT PROGRAM ON PROVISION OF CAREER TRAN13 SITION SERVICES TO YOUNG VETERANS. 

14 (a) IN GENERAL.—Commencing not later than Janu15 ary 1, 2014, the Secretary of Veterans Affairs shall, in 

16 collaboration with the Secretary of Labor, carry out a pilot 

17 program to assess the feasibility and advisability of estab18 lishing a program to provide career transition services to 

19 eligible individuals— 

20 (1) to provide eligible individuals with work ex21 perience in the civilian sector; 

22 (2) to increase the marketable skills of eligible 

23 individuals; 

24 (3) to assist eligible individuals in obtaining 

25 long-term employment; and 


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1 (4) to assist in integrating eligible individuals 

2 into their local communities. 

3 (b) ELIGIBLE INDIVIDUALS.—For purposes of the 

4 pilot program, an eligible individual is an individual who— 

5 (1) is— 

6 (A) a veteran of the Armed Forces who 

7 was discharged or released from service therein 

8 under conditions other than dishonorable; or 

9 (B) a member of a reserve component of 

10 the Armed Forces (including the National 

11 Guard) who— 

12 (i) served on active duty in the Armed 

13 Forces (other than active duty for train14 ing) for more than 180 consecutive days 

15 during the two-year period ending on the 

16 date of the commencement of the individ17 ual’s participation in the pilot program; 

18 and 

19 (ii) is not serving on active duty on 

20 the date of the commencement of the indi21 vidual’s participation in the pilot program; 

22 (2) is unemployed or underemployed, as deter23 mined by the Secretary; and 


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1 (3) is, at the time at which the individual ap2 plies for participation in the pilot program, 18 years 

3 of age or older, but not more than 30 years of age. 

4 (c) DURATION AND NUMBER OF PARTICIPANTS.— 

5 (1) DURATION.—The Secretary shall carry out 

6 the pilot program during the three-year period be7 ginning on the date of the commencement of the 

8 pilot program. 

9 (2) NUMBER OF PARTICIPANTS.—Not more 

10 than 50,000 eligible individuals may concurrently 

11 participate in the pilot program. 

12 (d) LOCATIONS.— 

13 (1) IN GENERAL.—The pilot program shall be 

14 carried out in four locations selected by the Sec15 retary for purposes of the pilot program and in ac16 cordance with the provisions of this subsection. 

17 (2) CONSIDERATION OF AREAS OF HIGH CON18 CENTRATIONS OF YOUNG ELIGIBLE INDIVIDUALS.— 

19 In selecting locations under paragraph (1), the Sec20 retary shall consider areas with populations the Sec21 retary determines have high concentrations of eligi22 ble individuals, particularly those with high con23 centrations of eligible individuals who are age 25 or 

24 younger. 


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1 (e) CAREER TRANSITION SERVICES.—For purposes 

2 of the pilot program, career transition services are the fol3 lowing: 

4 (1) Internships under subsection (f). 

5 (2) Mentorship and job-shadowing under sub6 section (g). 

7 (3) Volunteer opportunities under subsection 

8 (h). 

9 (4) Professional skill workshops under sub10 section (i). 

11 (5) Skills assessment under subsection (j). 

12 (6) Additional services under subsection (k). 

13 (f) INTERNSHIPS.— 

14 (1) IN GENERAL.—For each eligible individual 

15 whom the Secretary approves for participation in the 

16 pilot program, the Secretary shall attempt to place 

17 such eligible individual in an internship on a full18 time basis with an eligible employer whom the Sec19 retary has approved for participation in the pilot 

20 program. 

21 (2) ELIGIBLE EMPLOYER.—For purposes of the 

22 pilot program, an eligible employer is an employer 

23 determined by the Secretary to meet such criteria 

24 for participation in the pilot program as the Sec25 retary shall establish for purposes of the pilot proVerDate Mar 15 2010 03:18 May 14, 2013 Jkt 029200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6201 E:\BILLS\S922.IS S922

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1 gram, except that an employer may not be deter2 mined to be an eligible employer for that purpose if 

3 the employer— 

4 (A) has been investigated or subject to a 

5 case or action by the Federal Trade Commis6 sion during the 180-day period ending on the 

7 date the employer would otherwise commence 

8 participation in the pilot program; 

9 (B) has not been in good standing with a 

10 State business bureau during the period de11 scribed in subparagraph (A); 

12 (C) is an agency of the Federal Govern13 ment or a State or local government; 

14 (D) is delinquent with respect to payment 

15 of any taxes or employer contributions de16 scribed under sections 3301 and 3302(a)(1) of 

17 the Internal Revenue Code of 1986 (26 U.S.C. 

18 3301 and 3302(a)(1)) or with respect to any re19 lated reporting requirement; 

20 (E) has previously participated in the pilot 

21 program and, as determined by the Secretary, 

22 failed to abide by a requirement of the pilot 

23 program; or 


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1 (F) receives more than 75 percent of its 

2 revenue from the Federal Government or a 

3 State or local government. 

4 (3) DURATION.—Each internship under the 

5 pilot program shall be for a period of one year. 

6 (4) WAGES.— 

7 (A) IN GENERAL.—Except as provided in 

8 subparagraph (B), the Secretary shall furnish 

9 pay to each eligible individual participating in 

10 an internship under the pilot program for the 

11 duration of such participation at a rate equal to 

12 the greater of— 

13 (i) the rate specified in section 6(a)(1) 

14 of the Fair Labor Standards Act of 1938 

15 (29 U.S.C. 206(a)(1)) or the rate specified 

16 in the applicable State minimum wage law; 

17 and 

18 (ii) if the eligible individual was re19 ceiving unemployment compensation before 

20 being placed in the internship, the rate of 

21 such unemployment compensation. 

22 (B) MAXIMUM AMOUNT.—An eligible indi23 vidual may not receive an aggregate amount of 

24 more than $30,000 in pay from the Secretary 

25 under this paragraph. 


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1 (5) EMPLOYMENT STATUS.— 

2 (A) COMPENSATION FOR WORK INJU3 RIES.—An eligible individual placed in an in4 ternship with an eligible employer under the 

5 pilot program shall be deemed, during the pe6 riod of such internship under the pilot program, 

7 an employee of the United States for the pur8 poses of the benefits of chapter 81 of title 5, 

9 United States Code, but not for the purposes of 

10 laws administered by the Office of Personnel 

11 Management. 

12 (B) HEALTH BENEFITS.—For purposes of 

13 the Patient Protection and Affordable Care Act 

14 (Public Law 111–148), an eligible individual 

15 placed in an internship with an eligible em16 ployer under the pilot program shall be consid17 ered an employee of the Department of Vet18 erans Affairs and not the eligible employer dur19 ing the period of such internship under the pilot 

20 program. 

21 (6) RELATION TO OTHER FEDERAL ASSIST22 ANCE.—Notwithstanding any other provision of law, 

23 pay received by an individual under this subsection 

24 may not be used in any calculation to determine the 


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1 eligibility of such individual for any Federal program 

2 for the purpose of obtaining child care assistance. 

3 (7) LIMIT ON NUMBER OF INTERN PLACE4 MENTS.—In the case of an eligible employer at 

5 which one or more eligible individuals have been 

6 placed for an internship under the pilot program, 

7 the Secretary may consider, in determining whether 

8 to place an additional eligible individual at such em9 ployer for an internship under the pilot program, 

10 whether if after such additional placement, the num11 ber of eligible individuals placed in internships at 

12 such employer under the pilot program would con13 stitute more than 10 percent of the eligible employ14 er’s workforce. For purposes of the previous sen15 tence, being an intern under the pilot program 

16 placed at the eligible employer shall be considered 

17 part of the employer’s workforce. 

18 (g) MENTORSHIP AND JOB-SHADOWING.— 

19 (1) IN GENERAL.—As a condition of an eligible 

20 employer’s participation in the pilot program and 

21 the placement of an eligible individual in an intern22 ship at the eligible employer, the eligible employer 

23 shall provide each eligible individual placed in an in24 ternship at the eligible employer under the pilot proVerDate Mar 15 2010 03:18 May 14, 2013 Jkt 029200 PO 00000 Frm 00029 Fmt 6652 Sfmt 6201 E:\BILLS\S922.IS S922

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1 gram with at least one mentor who is an employee 

2 of the eligible employer. 

3 (2) JOB-SHADOWING AND CAREER COUN4 SELING.—To the extent practicable, a mentor as5 signed to an eligible individual participating in the 

6 pilot program shall provide such eligible individual 

7 with job shadowing and career counseling. 

8 (h) VOLUNTEER OPPORTUNITIES.— 

9 (1) IN GENERAL.—As a condition on participa10 tion in the pilot program, each eligible individual 

11 who participates in the pilot program shall, not less 

12 frequently than once each month in which the eligi13 ble individual participates in the pilot program, en14 gage in a qualifying volunteer activity in accordance 

15 with guidelines the Secretary shall establish. 

16 (2) QUALIFYING VOLUNTEER ACTIVITIES.—For 

17 purposes of this subsection, a qualifying volunteer 

18 activity is any activity the Secretary considers re19 lated to providing assistance to, or for the benefit of, 

20 a veteran. Such activities may include the following: 

21 (A) Outreach. 

22 (B) Assisting an organization recognized 

23 by the Secretary for the representation of vet24 erans under section 5902 of title 38, United 

25 States Code, on a volunteer basis. 


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1 (C) Service benefitting a veteran in a State 

2 home or a Department of Veterans Affairs med3 ical facility. 

4 (D) Service benefitting a veteran at an in5 stitution of higher education. 

6 (i) PROFESSIONAL SKILLS WORKSHOPS.— 

7 (1) IN GENERAL.—The Secretary shall provide 

8 eligible individuals participating in the pilot program 

9 with workshops for the development and improve10 ment of the professional skills of such eligible indi11 viduals. 

12 (2) TAILORED.—The workshops provided by the 

13 Secretary shall be tailored to meet the particular 

14 needs of eligible individuals participating in the pilot 

15 program as determined under subsection (j). 

16 (3) TOPICS.—The workshops provided to eligi17 ble individuals participating in the pilot program 

18 may include workshops for the development of such 

19 professional skills as the Secretary considers appro20 priate, which may include the following: 

21 (A) Written and oral communication skills. 

22 (B) Basic word processing and other com23 puter skills. 

24 (C) Interpersonal skills. 


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1 (4) MANNER OF PRESENTATION.—Workshops 

2 on particular topics shall be provided through such 

3 means as may be appropriate, effective, and ap4 proved of by the Secretary for purposes of the pilot 

5 program. Such means may include use of electronic 

6 communication. 

7 (5) ASSESSMENTS.—The Secretary shall con8 duct an assessment of a participant in a workshop 

9 conducted under this subsection to assess the par10 ticipant’s knowledge acquired as a result of partici11 pating in the workshop. 

12 (j) SKILLS ASSESSMENT.— 

13 (1) IN GENERAL.—Under the pilot program, 

14 the Secretary shall develop and implement an objec15 tive assessment of eligible individuals participating 

16 in the pilot program to assist in the placement of 

17 such individuals in internships under subsection (f) 

18 and to assist in the tailoring of workshops under 

19 subsection (i). 

20 (2) ELEMENTS.—The assessment may include 

21 an assessment of the skill levels and service needs of 

22 each participant, which may include a review of 

23 basic professional entry-level skills, prior work expe24 rience, employability, and the individual’s interests. 

25 (k) ADDITIONAL SERVICES.— 


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1 (1) IN GENERAL.—Except as provided in para2 graph (2), the Secretary shall, under the pilot pro3 gram, furnish the following services to an eligible in4 dividual participating in the pilot program when as5 sessment under subsection (j) indicates such services 

6 are appropriate: 

7 (A) Counseling, such as job counseling and 

8 career counseling. 

9 (B) Job search assistance. 

10 (C) Follow-up services with participants 

11 that are offered unsubsidized employment by 

12 the employer with whom they were assigned. 

13 (D) Transportation, as described in para14 graph (2). 

15 (2) REFERRALS.—In lieu of furnishing a serv16 ice to an eligible individual under paragraph (1), the 

17 Secretary may refer such eligible individual to an18 other Federal, State, or local government program 

19 that provides such service. 

20 (3) TRANSPORTATION.—In accordance with cri21 teria established by the Secretary for purposes of the 

22 pilot program, the Secretary may pay an allowance 

23 based upon mileage, of any eligible individual placed 

24 in an internship under the pilot program not in ex25 cess of 75 miles to or from a facility of the eligible 


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1 employer or other place in connection with such in2 ternship. 

3 (l) PARTICIPATION.— 

4 (1) APPLICATION.— 

5 (A) IN GENERAL.—An eligible employer, 

6 eligible individual, or member of the Armed 

7 Forces described in subparagraph (B) seeking 

8 to participate in the pilot program shall submit 

9 to the Secretary of Veterans Affairs an applica10 tion therefor at such time, in such manner, and 

11 containing such information as the Secretary 

12 shall specify. 

13 (B) MEMBERS OF ARMED FORCES.—A 

14 member of the Armed Forces described in this 

15 subparagraph is a member of the Armed Forces 

16 who— 

17 (i) is expected, within 180 days, to be 

18 discharged or released from service in the 

19 active military, naval, or air service under 

20 conditions other than dishonorable; and 

21 (ii) has not accepted an offer of em22 ployment that would begin after such dis23 charge or release. 

24 (2) SELECTION.— 


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1 (A) IN GENERAL.—The Secretary shall re2 view each application submitted by an applicant 

3 under paragraph (1) and approve or disapprove 

4 the applicant for participation in the pilot pro5 gram. 

6 (B) CONSIDERATION OF EMPLOYER PER7 FORMANCE.—In approving or disapproving an 

8 eligible employer for participation in the pilot 

9 program, the Secretary may consider past per10 formance of the eligible employer with respect 

11 to the following: 

12 (i) Job training, basic skills training, 

13 and related activities. 

14 (ii) Fiscal accountability. 

15 (iii) Demonstration of a high potential 

16 for growth and long-term job creation. 

17 (C) CONSIDERATIONS CONCERNING SELEC18 TION OF FOR-PROFIT AND NOT-FOR-PROFIT EM19 PLOYERS.—The Secretary may consider approv20 ing both for-profit and not-for-profit employers 

21 who are eligible employers for placement of in22 terns under the pilot program. 

23 (D) CONSIDERATIONS CONCERNING PAR24 TICIPATION OF SMALL BUSINESS CONCERNS.— 

25 In selecting eligible employers for participation 


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1 in the pilot program, the Secretary may con2 sider the extent to which small business con3 cerns are afforded opportunities to participate 

4 in the pilot program. 

5 (m) GRANTS.— 

6 (1) IN GENERAL.—The Secretary may award 

7 grants to not more than four eligible entities to as8 sist the Secretary in carrying out the pilot program. 

9 (2) ELIGIBLE ENTITIES.—For purposes of the 

10 pilot program, an eligible entity is a nonprofit orga11 nization. 

12 (3) CONSIDERATIONS.—In awarding grants 

13 under this subsection, the Secretary may consider 

14 whether an eligible entity— 

15 (A) has an understanding of the unemploy16 ment problems of eligible individuals and mem17 bers of the Armed Forces transitioning from 

18 service in the Armed Forces to civilian life; 

19 (B) is familiar with one or more locations 

20 selected under subsection (d); and 

21 (C) has the capability to assist the Sec22 retary in administering effectively the pilot pro23 gram and providing career transition services to 

24 eligible individuals. 


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1 (4) USE OF FUNDS.—Amounts received by a re2 cipient of a grant under this subsection may be used 

3 as the Secretary considers appropriate for purposes 

4 of the pilot program, including as follows: 

5 (A) To assist the Secretary in carrying out 

6 the pilot program. 

7 (B) To recruit eligible employers and eligi8 ble individuals to participate in the pilot pro9 gram. 

10 (C) To match eligible individuals partici11 pating in the pilot program with internship op12 portunities at eligible employers participating in 

13 the pilot program. 

14 (D) To coordinate and carry out job place15 ment and other employer outreach activities. 

16 (n) OUTREACH.—The Secretary of Veterans Affairs 

17 and the Secretary of Labor shall jointly carry out a pro18 gram of outreach to inform eligible employers and eligible 

19 individuals about the pilot program and the benefits of 

20 participating in the pilot program. 

21 (o) AWARDS FOR OUTSTANDING CONTRIBUTIONS TO

22 PILOT PROGRAM.— 

23 (1) IN GENERAL.—Each year of the pilot pro24 gram, the Secretary of Veterans Affairs may recog25 nize one or more eligible employers or one or more 


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1 eligible individuals participating in the pilot program 

2 for demonstrating outstanding achievement in car3 rying out or in contributing to the success of the 

4 pilot program. 

5 (2) CRITERIA.—The Secretary shall establish 

6 such selection procedures and criteria as the Sec7 retary considers appropriate for the award of rec8 ognition under this subsection. 

9 (p) MINIMIZATION OF ADMINISTRATIVE BURDEN ON

10 PARTICIPATING EMPLOYERS.—The Secretary shall take 

11 such measures as may be necessary to minimize adminis12 trative burdens incurred by eligible employers due to par13 ticipation in the pilot program. 

14 (q) REPORTS.— 

15 (1) IN GENERAL.—Not later than 45 days after 

16 the completion of the first year of the pilot program 

17 and not later than 180 days after the completion of 

18 the second and third years of the pilot program, the 

19 Secretary shall submit to Congress a report on the 

20 pilot program. 

21 (2) CONTENTS.—Each report submitted under 

22 paragraph (1) shall include the following: 

23 (A) An evaluation of the pilot program. 

24 (B) The number and characteristics of 

25 participants in the pilot program. 


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1 (C) The number and types of internships 

2 in which eligible individuals were placed under 

3 the pilot program. 

4 (D) The number of individuals who ob5 tained long-term full-time unsubsidized employ6 ment positions as a result of the pilot program, 

7 the hourly wage and nature of such employ8 ment, and if available, whether such individuals 

9 were still employed in such positions three 

10 months after obtaining such positions. 

11 (E) An assessment of the feasibility and 

12 advisability of providing career transition serv13 ices to eligible individuals. 

14 (F) An assessment of the effect of the pilot 

15 program on earnings of eligible individuals and 

16 the employment of eligible individuals. 

17 (G) Such recommendations for legislative 

18 and administrative action as the Secretary may 

19 have to improve the pilot program, to expand 

20 the pilot program, or to improve the employ21 ment of eligible individuals. 

22 (r) FUNDING LIMITATIONS.— 

23 (1) WAGES FOR INTERNSHIPS.—Not less than 

24 95 percent of amounts appropriated or otherwise 


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1 made available for the pilot program shall be used 

2 to provide pay under subsection (f)(4). 

3 (2) ADMINISTRATION.—Not more than 5 per4 cent of amounts appropriated or otherwise made 

5 available for the pilot program may be used to ad6 minister the pilot program. 

7 (s) DEFINITIONS.—In this section: 

8 (1) ACTIVE DUTY, ACTIVE MILITARY, NAVAL, OR

9 AIR SERVICE, RESERVE COMPONENT, AND VET10 ERAN.—The terms ‘‘active duty’’, ‘‘active military, 

11 naval, or air service’’, ‘‘reserve component’’, and 

12 ‘‘veteran’’ have the meanings given such terms in 

13 section 101 of title 38, United States Code. 

14 (2) FULL-TIME BASIS.—The term ‘‘full-time 

15 basis’’, with respect to an internship, means partici16 pation in the internship of not fewer than 30 hours 

17 per week and not more than 40 hours per week. 

18 (3) SMALL BUSINESS CONCERN.—The term 

19 ‘‘small business concern’’ has the meaning given 

20 that term under section 3(a) of the Small Business 

21 Act (15 U.S.C. 632(a)). 

22 (4) UNEMPLOYMENT COMPENSATION.—The 

23 term ‘‘unemployment compensation’’ means regular 

24 compensation (as defined in section 205 of the Fed25 eral-State Extended Unemployment Compensation 


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1 Act of 1970), compensation under the Federal-State 

2 Extended Compensation Act of 1970, and compensa3 tion under the emergency unemployment compensa4 tion program under title IV of the Supplemental Ap5 propriations Act, 2008. 

Æ 


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