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[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[S. 922 Introduced in Senate (IS)]

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.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Veterans Equipped for Success Act of 
2013''.

SEC. 2. PILOT PROGRAM ON PROVISION OF SUBSIDIES TO EMPLOYERS FOR 
              EMPLOYMENT OF CERTAIN VETERANS AND MEMBERS OF THE ARMED 
              FORCES.

    (a) In General.--Commencing not later than January 1, 2014, the 
Secretary of Labor shall, acting through the Assistant Secretary of 
Labor for Veterans' Employment and Training and in collaboration with 
the Secretary of Veterans Affairs, carry out a pilot program to assess 
the feasibility and advisability of providing subsidies to eligible 
employers to employ eligible individuals--
            (1) to provide eligible individuals with valuable work 
        experience;
            (2) to increase the skills of eligible individuals; and
            (3) to assist eligible individuals in obtaining long-term 
        employment.
    (b) Eligible Individual.--For purposes of the pilot program, an 
eligible individual is an individual who--
            (1) is--
                    (A) a veteran of the Armed Forces who was 
                discharged or released from service therein under 
                conditions other than dishonorable; or
                    (B) a member of a reserve component of the Armed 
                Forces (including the National Guard) who--
                            (i) served on active duty in the Armed 
                        Forces (other than active duty for training) 
                        for more than 180 consecutive days during the 
                        two-year period ending on the date of 
                        commencement of the participation in the pilot 
                        program; and
                            (ii) is not serving on active duty on the 
                        date of commencement of participation in the 
                        pilot program;
            (2) is, at the time at which the individual applies for 
        participation in the pilot program--
                    (A) 18 years of age or more but not more than 34 
                years of age; or
                    (B) 55 years of age or more but not more than 64 
                years of age;
            (3) is not in receipt of compensation under chapter 11 of 
        title 38, United States Code, by reason of unemployability;
            (4) is not enrolled on the date of commencement of 
        participation in the pilot program in a Federal or State job 
        training program; and
            (5) is considered by the Secretary to be unemployed or 
        underemployed.
    (c) Eligible Employer.--
            (1) In general.--For purposes of the pilot program, an 
        eligible employer is an employer determined by the Secretary to 
        meet such criteria for participation in the pilot program as 
        the Secretary shall establish for purposes of the pilot 
        program, except that an employer may not be determined to be an 
        eligible employer for that purpose if the employer--
                    (A) has been investigated or subject to a case or 
                action by the Federal Trade Commission during the 180-
                day period ending on the date the employer would 
                otherwise commence participation in the pilot program;
                    (B) has not been in good standing with a State 
                business bureau during the period described in 
                subparagraph (A);
                    (C) is an agency of the Federal Government or a 
                State or local government;
                    (D) is delinquent with respect to payment of any 
                taxes or employer contributions described under 
                sections 3301 and 3302(a)(1) of the Internal Revenue 
                Code of 1986 (26 U.S.C. 3301 and 3302(a)(1)) or with 
                respect to any related reporting requirement;
                    (E) has previously participated in the pilot 
                program and, as determined by the Secretary, failed to 
                abide by a requirement of the pilot program;
                    (F) does not provide assurances to the Secretary at 
                the time the employer would otherwise commence 
                participation in the pilot program that the employer 
                will comply under the pilot program with the 
                requirements for non-displacement of current employees 
                specified in paragraph (2); or
                    (G) receives more than 75 percent of its revenue 
                from the Federal Government or a State or local 
                government.
            (2) Non-displacement of current employees.--The 
        requirements specified in this paragraph are the following:
                    (A) That an employer shall not use an individual 
                participating in the pilot program to displace any 
                employee of the employer at the time of commencement of 
                participation in the pilot program from employment or 
                any employment benefits, including a partial 
                displacement (such as a reduction in the hours of non-
                overtime work, wages, or employment benefits).
                    (B) That an employer shall not permit an individual 
                participating in the pilot program to perform work 
                activities related to any job for which--
                            (i) any other individual is on layoff from 
                        the same or any substantially equivalent 
                        position; or
                            (ii) the employer has terminated the 
                        employment of any employee or otherwise reduced 
                        the workforce of the employer with the 
                        intention of filling or partially filling the 
                        vacancy so created with the work activities to 
                        be performed by the individual participating in 
                        the pilot program.
                    (C) That an employer shall not create a job for an 
                individual participating in the pilot program in a 
                manner that will infringe in any way upon the 
                opportunities for promotion of individuals employed by 
                the employer on the date of the employer's commencement 
                of participation in the pilot program.
                    (D) That--
                            (i) an employer shall not, by means of 
                        assigning work activities under the pilot 
                        program, impair an existing contract for 
                        services or a collective bargaining agreement; 
                        and
                            (ii) work activities that would be 
                        inconsistent with the terms of a collective 
                        bargaining agreement shall not be undertaken by 
                        an individual participating in the pilot 
                        program without the written concurrence of the 
                        labor organization that is signatory to the 
                        collective bargaining agreement.
    (d) Duration and Number of Participants.--
            (1) Duration.--The Secretary shall carry out the pilot 
        program during the three-year period beginning on the date of 
        the commencement of the pilot program.
            (2) Number of participants.--Not more than 50,000 eligible 
        individuals may concurrently participate in the pilot program.
    (e) Locations.--
            (1) In general.--The Secretary shall carry out the pilot 
        program in four locations selected by the Secretary for 
        purposes of the pilot program from among areas with populations 
        the Secretary determines have high concentrations of veterans.
            (2) Consultation with secretary of veterans affairs.--In 
        selecting locations under paragraph (1), the Secretary of Labor 
        may consult with the Secretary of Veterans Affairs, 
        particularly with respect to determining which areas have 
        populations with high concentrations of veterans.
    (f) Subsidies.--
            (1) In general.--For each eligible employer approved by the 
        Secretary to participate in the pilot program who employs on a 
        full-time basis an eligible individual approved by the 
        Secretary to participate in the pilot program, the Secretary 
        shall provide a subsidy for the employment of such eligible 
        individual by such eligible employer during such period as--
                    (A) the eligible individual is employed by the 
                eligible employer;
                    (B) the eligible individual is participating in the 
                pilot program; and
                    (C) the eligible employer is participating in the 
                pilot program.
            (2) Amount.--
                    (A) In general.--Except as provided in subparagraph 
                (B), a subsidy provided by the Secretary under the 
                pilot program to an eligible employer for the 
                employment of an eligible individual shall be an amount 
                equal to--
                            (i) except as provided in clause (ii), 60 
                        percent of the basic pay provided by the 
                        eligible employer under the pilot program to 
                        the eligible individual; and
                            (ii) in the case in which the eligible 
                        employer provides employment that includes an 
                        apprenticeship (which must be approved for 
                        purposes of the pilot program not later than 
                        two years after the date of the commencement of 
                        the pilot program), 75 percent of the basic pay 
                        provided by the eligible employer under the 
                        pilot program to the eligible individual.
                    (B) Maximum amount.--Except as provided in 
                subparagraph (D), the aggregate amount of subsidy 
                provided under the pilot program to an eligible 
                employer for the employment of an eligible individual 
                may not exceed--
                            (i) except as provided in clause (ii), 
                        $11,000; or
                            (ii) in the case described in subparagraph 
                        (A)(ii), $14,000.
                    (C) Disbursement of payments.--
                            (i) Payments on quarterly basis.--Except as 
                        provided in clause (ii), subsidies paid to an 
                        eligible employer under subparagraph (A) shall 
                        be paid to the eligible employer on a quarterly 
                        basis.
                            (ii) Payments on monthly basis.--In order 
                        to relieve financial burden on an eligible 
                        employer participating in the pilot program 
                        whom the Secretary determines has few 
                        employees, the Secretary may pay subsidies 
                        under subparagraph (A) to such employer on a 
                        monthly basis as the Secretary considers 
                        appropriate.
                    (D) Additional hiring incentive.--If an eligible 
                employer who received a subsidy under the pilot program 
                for the employment of an eligible individual hires such 
                eligible individual on a full-time basis following the 
                completion of the participation of such eligible 
                individual in the pilot program, the Secretary shall 
                pay such eligible employer an additional amount equal 
                to 10 percent of the aggregate amount of subsidy paid 
                to the eligible employer under subparagraph (A) during 
                the last six months of such eligible individual's 
                employment with such eligible employer while 
                participating in the pilot program. Any amount paid 
                under this subparagraph shall not apply against the 
                aggregate maximum amount specified in subparagraph (B).
                    (E) Apprenticeships.--The Secretary may establish 
                guidelines or criteria for the approval or disapproval 
                of apprenticeships for purposes of the pilot program.
            (3) Duration.--A subsidy provided to an eligible employer 
        to employ an eligible individual under the pilot program shall 
        be for the lesser of--
                    (A) a period of one year; and
                    (B) the duration of such eligible individual's 
                employment with the eligible employer.
            (4) Consideration concerning receipt of concurrent 
        subsidies.--In the case of an eligible employer who is already 
        receiving one or more subsidies under the pilot program for the 
        employment of one or more eligible individuals, when 
        determining whether to provide an additional subsidy to such 
        employer to employ an additional eligible individual, the 
        Secretary may take into consideration, if after hiring such 
        additional eligible individual, the number of eligible 
        individuals for whom the employer is receiving a subsidy under 
        the pilot program would constitute more than 10 percent of the 
        workforce of the eligible employer.
            (5) Minimum wage.--No eligible employer may receive a 
        subsidy under the pilot program for the employment of an 
        eligible individual if the rate of pay for such employment is 
        less than the greater of the rate specified in section 6(a)(1) 
        of the Fair Labor Standards Act of 1938 (29 U.S.C. 206(a)(1)) 
        or the rate specified in the applicable State minimum wage law.
            (6) Sense of congress on exclusion of certain employment.--
        It is the sense of Congress that an employer should not be 
        provided a subsidy under the pilot program for employment of an 
        eligible individual in a position under a contract, grant, or 
        cooperative agreement with the Federal Government or a State or 
        local government that involves functions that are so inherently 
        governmental that the position would not provide the eligible 
        individual with experience, training, or skills necessary for 
        employment in the private sector in a position not involving 
        such functions.
    (g) Participation.--
            (1) Application.--
                    (A) In general.--An eligible employer or an 
                eligible individual seeking to participate in the pilot 
                program shall submit to the Secretary an application 
                therefor at such time and in such manner as the 
                Secretary shall specify.
                    (B) Elements.--Except as provided in subparagraph 
                (C), each application submitted under subparagraph (A) 
                shall contain such information as the Secretary may 
                specify.
                    (C) Requirements of eligible employers.--An 
                application submitted by an eligible employer under 
                subparagraph (A) shall include assurance that the 
                eligible employer will comply with the requirements for 
                non-displacement of current employees specified in 
                subsection (c)(2) under the pilot program.
            (2) Selection.--
                    (A) In general.--The Secretary shall review each 
                application submitted by an applicant under paragraph 
                (1) and approve or disapprove the applicant for 
                participation in the pilot program.
                    (B) Employer selection considerations.--In 
                approving or disapproving an eligible employer for 
                participation in the pilot program, the Secretary may 
                consider past performance of the eligible employer with 
                respect to the following:
                            (i) Job training, basic skills training, 
                        and related activities.
                            (ii) Fiscal accountability.
                            (iii) Demonstration of a high potential for 
                        growth and long-term job creation.
                    (C) Considerations concerning selection of for-
                profit and not-for-profit employers.--The Secretary may 
                consider approving both for-profit and not-for-profit 
                employers who are eligible employers for participation 
                in the pilot program.
                    (D) Considerations concerning participation of 
                small business concerns.--In selecting eligible 
                employers for participation in the pilot program, the 
                Secretary may consider the extent to which small 
                business concerns are afforded opportunities to 
                participate in the pilot program.
            (3) Early termination or separation of eligible individual 
        participants by secretary.--If the Secretary determines that an 
        eligible individual participating in the pilot program is not 
        making satisfactory attendance in employment, or has been 
        removed from placement for misconduct, the Secretary may 
        terminate such eligible individual's status as a participant in 
        the pilot program and bar such eligible individual from further 
        participation in the pilot program.
            (4) Employment status.--
                    (A) Compensation for work injuries.--An eligible 
                individual employed by an eligible employer who 
                receives a subsidy for such employment under the pilot 
                program shall be deemed, during the period of such 
                subsidy, an employee of the United States for the 
                purposes of the benefits of chapter 81 of title 5, 
                United States Code, but not for the purposes of laws 
                administered by the Office of Personnel Management.
                    (B) Health benefits.--For purposes of the Patient 
                Protection and Affordable Care Act (Public Law 111-
                148), an eligible individual employed by an eligible 
                employer shall be considered an employee of the 
                Department of Labor and not the eligible employer 
                during such period as the eligible employer receives a 
                subsidy under the pilot program for the employment of 
                such eligible individual.
    (h) Transportation Support for Participating Eligible 
Individuals.--In accordance with criteria established by the Secretary 
for purposes of the pilot program, the Secretary may pay an allowance 
based upon mileage, of any eligible individual whose employment is 
subsidized under the pilot program not in excess of 75 miles to or from 
a facility of the eligible employer or other place in connection with 
such employment.
    (i) Grants to Eligible Entities.--
            (1) In general.--The Secretary may award grants to not more 
        than four eligible entities to assist the Secretary in carrying 
        out the pilot program.
            (2) Eligible entities.--For purposes of the pilot program, 
        an eligible entity is a nonprofit organization.
            (3) Considerations.--In awarding grants under this 
        subsection, the Secretary may consider whether an eligible 
        entity--
                    (A) has an understanding of the unemployment 
                problems of eligible individuals and members of the 
                Armed Forces transitioning from service in the Armed 
                Forces to civilian life;
                    (B) is familiar with a location selected under 
                subsection (e) and has an understanding of employment 
                in such location and employment assistance available to 
                eligible individuals in such location; and
                    (C) has the capability to assist the Secretary in 
                administering effectively the pilot program and provide 
                employment assistance to eligible individuals.
            (4) Use of funds.--Amounts received by a recipient of a 
        grant under this subsection may be used as follows:
                    (A) To assist the Secretary in carrying out the 
                pilot program.
                    (B) To recruit eligible employers and eligible 
                individuals to participate in the pilot program.
                    (C) To coordinate and implement job placement and 
                other employer outreach activities in connection with 
                the pilot program.
                    (D) To carry out such other activities as the 
                Secretary considers appropriate for purposes of the 
                pilot program.
    (j) Additional Pilot Program Requirements.--Under the pilot 
program, the Secretary shall--
            (1) develop an objective assessment process that will 
        identify the work experience, skill levels, and interests of 
        eligible individuals participating in the pilot program;
            (2) ensure that employment and counseling services are 
        available to eligible individuals participating in the pilot 
        program, including by connecting eligible individuals with 
        services available to the eligible individuals through State or 
        local employment service or other public agencies;
            (3) develop and implement procedures for evaluating job 
        placement and employment of eligible individuals participating 
        in the pilot program; and
            (4) carry out such other activities as the Secretary 
        considers appropriate for purposes of the pilot program.
    (k) Outreach.--The Secretary of Labor and the Secretary of Veterans 
Affairs shall jointly conduct a program of outreach to inform eligible 
employers and eligible individuals about the pilot program and the 
benefits of participating in the pilot program.
    (l) Minimization of Administrative Burden on Participating 
Employers.--The Secretary of Labor shall take such measures as may be 
necessary to minimize administrative burdens incurred by eligible 
employers in participating in the pilot program.
    (m) Reports.--
            (1) In general.--Not later than 45 days after the 
        completion of the first year of the pilot program and not later 
        than 180 days after the completion of the second and third 
        years of the pilot program, the Secretary shall submit to 
        Congress a report on the pilot program.
            (2) Contents.--Each report submitted under paragraph (1) 
        shall include the following:
                    (A) An evaluation of the pilot program.
                    (B) The number and characteristics of individuals 
                participating in the pilot program.
                    (C) The number and characteristics of employers 
                participating in the pilot program.
                    (D) The number and types of positions of employment 
                in which eligible individuals were placed under the 
                pilot program.
                    (E) The number of individuals who obtained long-
                term full-time employment positions as a result of the 
                pilot program, the hourly wage and nature of such 
                employment, and if available, whether such individuals 
                were still employed in such positions three months 
                after obtaining such positions.
                    (F) A description of the outreach activities 
                undertaken to raise awareness of the pilot program by 
                potential eligible individuals and eligible employers, 
                and an assessment of the effectiveness of such 
                activities.
                    (G) An assessment of the feasibility and 
                advisability of providing subsidies to eligible 
                employers to employ eligible individuals.
                    (H) An assessment of the effect of the pilot 
                program on earnings of eligible individuals and the 
                employment of eligible individuals.
                    (I) Such recommendations for legislative and 
                administrative action as the Secretary considers 
                appropriate to improve the pilot program, to expand the 
                pilot program, or to improve the employment of eligible 
                individuals.
    (n) Relation to Other Federal Assistance.--Notwithstanding any 
other provision of law, wages received by an individual that are 
subsidized under the pilot program may not be used in any calculation 
to determine the eligibility of such individual for any Federal program 
for the purpose of obtaining child care assistance.
    (o) Funding Limitations.--
            (1) Wage subsidies.--Not less than 95 percent of amounts 
        appropriated or otherwise made available for the pilot program 
        shall be used to provide subsidies under subsection (f).
            (2) Administration.--Not more than 5 percent of amounts 
        appropriated or otherwise made available for the pilot program 
        may be used to administer the pilot program.
    (p) Coordination With Work Opportunity Tax Credit.--Section 51 of 
the Internal Revenue Code of 1986 is amended by adding at the end the 
following new subsection:
    ``(j) Coordination With Pilot Program on Provision of Subsidies to 
Employers for Employment of Certain Veterans and Members of Armed 
Forces.--No credit shall be allowed under subsection (a) with respect 
to any wages paid to a qualified veteran if the taxpayer has received a 
subsidy under section 2(f) of the Veterans Equipped for Success Act of 
2013 with respect to such qualified veteran.''.
    (q) Definitions.--In this section:
            (1) Apprenticeship.--The term ``apprenticeship'' means a 
        program of apprenticeship approved by the Office of 
        Apprenticeship of the Department of Labor or a State 
        apprenticeship as meeting the standards of apprenticeship 
        published by the Secretary of Labor pursuant to section 2 of 
        the Act of August 16, 1937 (popularly known as the ``National 
        Apprenticeship Act'') (29 U.S.C. 50a).
            (2) Full-time basis.--The term ``full-time basis'', with 
        respect to employment, means employment of a minimum of 30 
        hours a week.
            (3) Small business concern.--The term ``small business 
        concern'' has the meaning given that term under section 3(a) of 
        the Small Business Act (15 U.S.C. 632(a)).

SEC. 3. PILOT PROGRAM ON PROVISION OF CAREER TRANSITION SERVICES TO 
              YOUNG VETERANS.

    (a) In General.--Commencing not later than January 1, 2014, the 
Secretary of Veterans Affairs shall, in collaboration with the 
Secretary of Labor, carry out a pilot program to assess the feasibility 
and advisability of establishing a program to provide career transition 
services to eligible individuals--
            (1) to provide eligible individuals with work experience in 
        the civilian sector;
            (2) to increase the marketable skills of eligible 
        individuals;
            (3) to assist eligible individuals in obtaining long-term 
        employment; and
            (4) to assist in integrating eligible individuals into 
        their local communities.
    (b) Eligible Individuals.--For purposes of the pilot program, an 
eligible individual is an individual who--
            (1) is--
                    (A) a veteran of the Armed Forces who was 
                discharged or released from service therein under 
                conditions other than dishonorable; or
                    (B) a member of a reserve component of the Armed 
                Forces (including the National Guard) who--
                            (i) served on active duty in the Armed 
                        Forces (other than active duty for training) 
                        for more than 180 consecutive days during the 
                        two-year period ending on the date of the 
                        commencement of the individual's participation 
                        in the pilot program; and
                            (ii) is not serving on active duty on the 
                        date of the commencement of the individual's 
                        participation in the pilot program;
            (2) is unemployed or underemployed, as determined by the 
        Secretary; and
            (3) is, at the time at which the individual applies for 
        participation in the pilot program, 18 years of age or older, 
        but not more than 30 years of age.
    (c) Duration and Number of Participants.--
            (1) Duration.--The Secretary shall carry out the pilot 
        program during the three-year period beginning on the date of 
        the commencement of the pilot program.
            (2) Number of participants.--Not more than 50,000 eligible 
        individuals may concurrently participate in the pilot program.
    (d) Locations.--
            (1) In general.--The pilot program shall be carried out in 
        four locations selected by the Secretary for purposes of the 
        pilot program and in accordance with the provisions of this 
        subsection.
            (2) Consideration of areas of high concentrations of young 
        eligible individuals.--In selecting locations under paragraph 
        (1), the Secretary shall consider areas with populations the 
        Secretary determines have high concentrations of eligible 
        individuals, particularly those with high concentrations of 
        eligible individuals who are age 25 or younger.
    (e) Career Transition Services.--For purposes of the pilot program, 
career transition services are the following:
            (1) Internships under subsection (f).
            (2) Mentorship and job-shadowing under subsection (g).
            (3) Volunteer opportunities under subsection (h).
            (4) Professional skill workshops under subsection (i).
            (5) Skills assessment under subsection (j).
            (6) Additional services under subsection (k).
    (f) Internships.--
            (1) In general.--For each eligible individual whom the 
        Secretary approves for participation in the pilot program, the 
        Secretary shall attempt to place such eligible individual in an 
        internship on a full-time basis with an eligible employer whom 
        the Secretary has approved for participation in the pilot 
        program.
            (2) Eligible employer.--For purposes of the pilot program, 
        an eligible employer is an employer determined by the Secretary 
        to meet such criteria for participation in the pilot program as 
        the Secretary shall establish for purposes of the pilot 
        program, except that an employer may not be determined to be an 
        eligible employer for that purpose if the employer--
                    (A) has been investigated or subject to a case or 
                action by the Federal Trade Commission during the 180-
                day period ending on the date the employer would 
                otherwise commence participation in the pilot program;
                    (B) has not been in good standing with a State 
                business bureau during the period described in 
                subparagraph (A);
                    (C) is an agency of the Federal Government or a 
                State or local government;
                    (D) is delinquent with respect to payment of any 
                taxes or employer contributions described under 
                sections 3301 and 3302(a)(1) of the Internal Revenue 
                Code of 1986 (26 U.S.C. 3301 and 3302(a)(1)) or with 
                respect to any related reporting requirement;
                    (E) has previously participated in the pilot 
                program and, as determined by the Secretary, failed to 
                abide by a requirement of the pilot program; or
                    (F) receives more than 75 percent of its revenue 
                from the Federal Government or a State or local 
                government.
            (3) Duration.--Each internship under the pilot program 
        shall be for a period of one year.
            (4) Wages.--
                    (A) In general.--Except as provided in subparagraph 
                (B), the Secretary shall furnish pay to each eligible 
                individual participating in an internship under the 
                pilot program for the duration of such participation at 
                a rate equal to the greater of--
                            (i) the rate specified in section 6(a)(1) 
                        of the Fair Labor Standards Act of 1938 (29 
                        U.S.C. 206(a)(1)) or the rate specified in the 
                        applicable State minimum wage law; and
                            (ii) if the eligible individual was 
                        receiving unemployment compensation before 
                        being placed in the internship, the rate of 
                        such unemployment compensation.
                    (B) Maximum amount.--An eligible individual may not 
                receive an aggregate amount of more than $30,000 in pay 
                from the Secretary under this paragraph.
            (5) Employment status.--
                    (A) Compensation for work injuries.--An eligible 
                individual placed in an internship with an eligible 
                employer under the pilot program shall be deemed, 
                during the period of such internship under the pilot 
                program, an employee of the United States for the 
                purposes of the benefits of chapter 81 of title 5, 
                United States Code, but not for the purposes of laws 
                administered by the Office of Personnel Management.
                    (B) Health benefits.--For purposes of the Patient 
                Protection and Affordable Care Act (Public Law 111-
                148), an eligible individual placed in an internship 
                with an eligible employer under the pilot program shall 
                be considered an employee of the Department of Veterans 
                Affairs and not the eligible employer during the period 
                of such internship under the pilot program.
            (6) Relation to other federal assistance.--Notwithstanding 
        any other provision of law, pay received by an individual under 
        this subsection may not be used in any calculation to determine 
        the eligibility of such individual for any Federal program for 
        the purpose of obtaining child care assistance.
            (7) Limit on number of intern placements.--In the case of 
        an eligible employer at which one or more eligible individuals 
        have been placed for an internship under the pilot program, the 
        Secretary may consider, in determining whether to place an 
        additional eligible individual at such employer for an 
        internship under the pilot program, whether if after such 
        additional placement, the number of eligible individuals placed 
        in internships at such employer under the pilot program would 
        constitute more than 10 percent of the eligible employer's 
        workforce. For purposes of the previous sentence, being an 
        intern under the pilot program placed at the eligible employer 
        shall be considered part of the employer's workforce.
    (g) Mentorship and Job-Shadowing.--
            (1) In general.--As a condition of an eligible employer's 
        participation in the pilot program and the placement of an 
        eligible individual in an internship at the eligible employer, 
        the eligible employer shall provide each eligible individual 
        placed in an internship at the eligible employer under the 
        pilot program with at least one mentor who is an employee of 
        the eligible employer.
            (2) Job-shadowing and career counseling.--To the extent 
        practicable, a mentor assigned to an eligible individual 
        participating in the pilot program shall provide such eligible 
        individual with job shadowing and career counseling.
    (h) Volunteer Opportunities.--
            (1) In general.--As a condition on participation in the 
        pilot program, each eligible individual who participates in the 
        pilot program shall, not less frequently than once each month 
        in which the eligible individual participates in the pilot 
        program, engage in a qualifying volunteer activity in 
        accordance with guidelines the Secretary shall establish.
            (2) Qualifying volunteer activities.--For purposes of this 
        subsection, a qualifying volunteer activity is any activity the 
        Secretary considers related to providing assistance to, or for 
        the benefit of, a veteran. Such activities may include the 
        following:
                    (A) Outreach.
                    (B) Assisting an organization recognized by the 
                Secretary for the representation of veterans under 
                section 5902 of title 38, United States Code, on a 
                volunteer basis.
                    (C) Service benefitting a veteran in a State home 
                or a Department of Veterans Affairs medical facility.
                    (D) Service benefitting a veteran at an institution 
                of higher education.
    (i) Professional Skills Workshops.--
            (1) In general.--The Secretary shall provide eligible 
        individuals participating in the pilot program with workshops 
        for the development and improvement of the professional skills 
        of such eligible individuals.
            (2) Tailored.--The workshops provided by the Secretary 
        shall be tailored to meet the particular needs of eligible 
        individuals participating in the pilot program as determined 
        under subsection (j).
            (3) Topics.--The workshops provided to eligible individuals 
        participating in the pilot program may include workshops for 
        the development of such professional skills as the Secretary 
        considers appropriate, which may include the following:
                    (A) Written and oral communication skills.
                    (B) Basic word processing and other computer 
                skills.
                    (C) Interpersonal skills.
            (4) Manner of presentation.--Workshops on particular topics 
        shall be provided through such means as may be appropriate, 
        effective, and approved of by the Secretary for purposes of the 
        pilot program. Such means may include use of electronic 
        communication.
            (5) Assessments.--The Secretary shall conduct an assessment 
        of a participant in a workshop conducted under this subsection 
        to assess the participant's knowledge acquired as a result of 
        participating in the workshop.
    (j) Skills Assessment.--
            (1) In general.--Under the pilot program, the Secretary 
        shall develop and implement an objective assessment of eligible 
        individuals participating in the pilot program to assist in the 
        placement of such individuals in internships under subsection 
        (f) and to assist in the tailoring of workshops under 
        subsection (i).
            (2) Elements.--The assessment may include an assessment of 
        the skill levels and service needs of each participant, which 
        may include a review of basic professional entry-level skills, 
        prior work experience, employability, and the individual's 
        interests.
    (k) Additional Services.--
            (1) In general.--Except as provided in paragraph (2), the 
        Secretary shall, under the pilot program, furnish the following 
        services to an eligible individual participating in the pilot 
        program when assessment under subsection (j) indicates such 
        services are appropriate:
                    (A) Counseling, such as job counseling and career 
                counseling.
                    (B) Job search assistance.
                    (C) Follow-up services with participants that are 
                offered unsubsidized employment by the employer with 
                whom they were assigned.
                    (D) Transportation, as described in paragraph (2).
            (2) Referrals.--In lieu of furnishing a service to an 
        eligible individual under paragraph (1), the Secretary may 
        refer such eligible individual to another Federal, State, or 
        local government program that provides such service.
            (3) Transportation.--In accordance with criteria 
        established by the Secretary for purposes of the pilot program, 
        the Secretary may pay an allowance based upon mileage, of any 
        eligible individual placed in an internship under the pilot 
        program not in excess of 75 miles to or from a facility of the 
        eligible employer or other place in connection with such 
        internship.
    (l) Participation.--
            (1) Application.--
                    (A) In general.--An eligible employer, eligible 
                individual, or member of the Armed Forces described in 
                subparagraph (B) seeking to participate in the pilot 
                program shall submit to the Secretary of Veterans 
                Affairs an application therefor at such time, in such 
                manner, and containing such information as the 
                Secretary shall specify.
                    (B) Members of armed forces.--A member of the Armed 
                Forces described in this subparagraph is a member of 
                the Armed Forces who--
                            (i) is expected, within 180 days, to be 
                        discharged or released from service in the 
                        active military, naval, or air service under 
                        conditions other than dishonorable; and
                            (ii) has not accepted an offer of 
                        employment that would begin after such 
                        discharge or release.
            (2) Selection.--
                    (A) In general.--The Secretary shall review each 
                application submitted by an applicant under paragraph 
                (1) and approve or disapprove the applicant for 
                participation in the pilot program.
                    (B) Consideration of employer performance.--In 
                approving or disapproving an eligible employer for 
                participation in the pilot program, the Secretary may 
                consider past performance of the eligible employer with 
                respect to the following:
                            (i) Job training, basic skills training, 
                        and related activities.
                            (ii) Fiscal accountability.
                            (iii) Demonstration of a high potential for 
                        growth and long-term job creation.
                    (C) Considerations concerning selection of for-
                profit and not-for-profit employers.--The Secretary may 
                consider approving both for-profit and not-for-profit 
                employers who are eligible employers for placement of 
                interns under the pilot program.
                    (D) Considerations concerning participation of 
                small business concerns.--In selecting eligible 
                employers for participation in the pilot program, the 
                Secretary may consider the extent to which small 
                business concerns are afforded opportunities to 
                participate in the pilot program.
    (m) Grants.--
            (1) In general.--The Secretary may award grants to not more 
        than four eligible entities to assist the Secretary in carrying 
        out the pilot program.
            (2) Eligible entities.--For purposes of the pilot program, 
        an eligible entity is a nonprofit organization.
            (3) Considerations.--In awarding grants under this 
        subsection, the Secretary may consider whether an eligible 
        entity--
                    (A) has an understanding of the unemployment 
                problems of eligible individuals and members of the 
                Armed Forces transitioning from service in the Armed 
                Forces to civilian life;
                    (B) is familiar with one or more locations selected 
                under subsection (d); and
                    (C) has the capability to assist the Secretary in 
                administering effectively the pilot program and 
                providing career transition services to eligible 
                individuals.
            (4) Use of funds.--Amounts received by a recipient of a 
        grant under this subsection may be used as the Secretary 
        considers appropriate for purposes of the pilot program, 
        including as follows:
                    (A) To assist the Secretary in carrying out the 
                pilot program.
                    (B) To recruit eligible employers and eligible 
                individuals to participate in the pilot program.
                    (C) To match eligible individuals participating in 
                the pilot program with internship opportunities at 
                eligible employers participating in the pilot program.
                    (D) To coordinate and carry out job placement and 
                other employer outreach activities.
    (n) Outreach.--The Secretary of Veterans Affairs and the Secretary 
of Labor shall jointly carry out a program of outreach to inform 
eligible employers and eligible individuals about the pilot program and 
the benefits of participating in the pilot program.
    (o) Awards for Outstanding Contributions to Pilot Program.--
            (1) In general.--Each year of the pilot program, the 
        Secretary of Veterans Affairs may recognize one or more 
        eligible employers or one or more eligible individuals 
        participating in the pilot program for demonstrating 
        outstanding achievement in carrying out or in contributing to 
        the success of the pilot program.
            (2) Criteria.--The Secretary shall establish such selection 
        procedures and criteria as the Secretary considers appropriate 
        for the award of recognition under this subsection.
    (p) Minimization of Administrative Burden on Participating 
Employers.--The Secretary shall take such measures as may be necessary 
to minimize administrative burdens incurred by eligible employers due 
to participation in the pilot program.
    (q) Reports.--
            (1) In general.--Not later than 45 days after the 
        completion of the first year of the pilot program and not later 
        than 180 days after the completion of the second and third 
        years of the pilot program, the Secretary shall submit to 
        Congress a report on the pilot program.
            (2) Contents.--Each report submitted under paragraph (1) 
        shall include the following:
                    (A) An evaluation of the pilot program.
                    (B) The number and characteristics of participants 
                in the pilot program.
                    (C) The number and types of internships in which 
                eligible individuals were placed under the pilot 
                program.
                    (D) The number of individuals who obtained long-
                term full-time unsubsidized employment positions as a 
                result of the pilot program, the hourly wage and nature 
                of such employment, and if available, whether such 
                individuals were still employed in such positions three 
                months after obtaining such positions.
                    (E) An assessment of the feasibility and 
                advisability of providing career transition services to 
                eligible individuals.
                    (F) An assessment of the effect of the pilot 
                program on earnings of eligible individuals and the 
                employment of eligible individuals.
                    (G) Such recommendations for legislative and 
                administrative action as the Secretary may have to 
                improve the pilot program, to expand the pilot program, 
                or to improve the employment of eligible individuals.
    (r) Funding Limitations.--
            (1) Wages for internships.--Not less than 95 percent of 
        amounts appropriated or otherwise made available for the pilot 
        program shall be used to provide pay under subsection (f)(4).
            (2) Administration.--Not more than 5 percent of amounts 
        appropriated or otherwise made available for the pilot program 
        may be used to administer the pilot program.
    (s) Definitions.--In this section:
            (1) Active duty, active military, naval, or air service, 
        reserve component, and veteran.--The terms ``active duty'', 
        ``active military, naval, or air service'', ``reserve 
        component'', and ``veteran'' have the meanings given such terms 
        in section 101 of title 38, United States Code.
            (2) Full-time basis.--The term ``full-time basis'', with 
        respect to an internship, means participation in the internship 
        of not fewer than 30 hours per week and not more than 40 hours 
        per week.
            (3) Small business concern.--The term ``small business 
        concern'' has the meaning given that term under section 3(a) of 
        the Small Business Act (15 U.S.C. 632(a)).
            (4) Unemployment compensation.--The term ``unemployment 
        compensation'' means regular compensation (as defined in 
        section 205 of the Federal-State Extended Unemployment 
        Compensation Act of 1970), compensation under the Federal-State 
        Extended Compensation Act of 1970, and compensation under the 
        emergency unemployment compensation program under title IV of 
        the Supplemental Appropriations Act, 2008.
                                 <all>
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