I 
111TH CONGRESS 
1ST SESSION 
H. R. 942 
To direct the Secretary of Veterans Affairs to conduct a pilot project on 
the use of educational assistance under programs of the Department 
of Veterans Affairs to defray training costs associated with the purchase 
of certain franchise enterprises. 
IN THE HOUSE OF REPRESENTATIVES 
FEBRUARY 10, 2009 
Mr. ALEXANDER introduced the following bill; which was referred to the Com-
mittee on Veterans’ Affairs, and in addition to the Committee on Armed 
Services, for a period to be subsequently determined by the Speaker, in 
each case for consideration of such provisions as fall within the jurisdic-
tion of the committee concerned 
A BILL 
To direct the Secretary of Veterans Affairs to conduct a 
pilot project on the use of educational assistance under 
programs of the Department of Veterans Affairs to de-
fray training costs associated with the purchase of cer-
tain franchise enterprises. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Veterans Self-Employ-
ment Act of 2009’’. 
VerDate Nov 24 2008 
21:47 Feb 11, 2009
Jkt 079200
PO 00000
Frm 00001
Fmt 6652
Sfmt 6201
E:\BILLS\H942.IH
H942
rwilkins on PROD1PC63 with BILLS
SEC. 2. AVAILABILITY OF EDUCATION BENEFITS FOR PAY-
MENT 
OF 
TRAINING 
COSTS 
ASSOCIATED 
WITH THE PURCHASE OF CERTAIN FRAN-
CHISE ENTERPRISES. 
(a) 
ESTABLISHMENT
OF
FIVE-YEAR
PILOT 
PROJECT.—The Secretary of Veterans Affairs shall con-
duct a five-year pilot project to test the feasibility and ad-
visability of the use of educational assistance under the 
programs of the Department of Veterans Affairs under the 
following provisions of law to pay for training costs associ-
ated with the purchase of a franchise enterprise: 
(1) Chapter 30 of title 38, United States Code. 
(2) Chapter 32 of such title. 
(3) Chapter 35 of such title. 
(4) Chapter 1606 of title 10, United States 
Code. 
(5) Chapter 1607 of title 10, United States 
Code. 
(b) AMOUNT OF PAYMENT.— 
(1) IN GENERAL.—Subject to paragraph (3), 
the amount of educational assistance payable under 
the applicable provision of law referred to in sub-
section (a) to an individual entitled to such assist-
ance under such provision of law for the payment of 
training costs associated with the purchase of a 
franchise enterprise is equal to the lesser of 1⁄2 of 
VerDate Nov 24 2008 
21:47 Feb 11, 2009
Jkt 079200
PO 00000
Frm 00002
Fmt 6652
Sfmt 6201
E:\BILLS\H942.IH
H942
rwilkins on PROD1PC63 with BILLS
the franchise fee or 1⁄3 of the remaining amount of 
educational assistance to which the individual is en-
titled under such applicable provision of law, such 
remaining amount determined as of the date of ap-
proval by the Secretary of the individual’s applica-
tion for such assistance for payment of such training 
costs. 
(2) LUMP SUM PAYMENT.—Amounts payable to 
an individual under paragraph (1) shall be made in 
a lump sum. 
(c) REQUIREMENTS FOR PAYMENT.— 
(1) REQUIREMENT
FOR
THE
PROVISION
OF 
TRAINING.—Payment may not be made for training 
costs associated with the purchase of a franchise en-
terprise under the pilot project under this section 
unless— 
(A) appropriate training is required and 
provided with respect to the purchase and oper-
ation of the franchise operation; and 
(B) such training, and the entity or orga-
nization offering the training, are approved by 
the Secretary in accordance with this sub-
section. 
(2) 
GENERAL
REQUIREMENTS
FOR
AP-
PROVAL.—The requirements of approval for such 
VerDate Nov 24 2008 
21:47 Feb 11, 2009
Jkt 079200
PO 00000
Frm 00003
Fmt 6652
Sfmt 6201
E:\BILLS\H942.IH
H942
rwilkins on PROD1PC63 with BILLS
training and organizations or entities offering such 
training shall be in accordance with the applicable 
provisions of chapters 30, 32, 35, and 36 of title 38, 
United States Code, and chapters 1606 and 1607 of 
title 10, United States Code, and with regulations 
prescribed by the Secretary to carry out this section, 
and shall include the following: 
(A) The organization or entity certifies to 
the Secretary that the training offered by the 
organization or entity is generally accepted, in 
accordance with relevant government, business, 
or industry standards, employment policies, or 
hiring practices, as attesting to a level of knowl-
edge or skill required to own and successfully 
operate a franchise operation. 
(B) The organization or entity is licensed, 
chartered, or incorporated in a State and has 
offered such training for a minimum of two 
years before the date on which the organization 
or entity first submits to the Secretary an ap-
plication for approval under this section. 
(C) The organization or entity maintains 
appropriate records with respect to all trainees 
who pursue such training for a period pre-
VerDate Nov 24 2008 
21:47 Feb 11, 2009
Jkt 079200
PO 00000
Frm 00004
Fmt 6652
Sfmt 6201
E:\BILLS\H942.IH
H942
rwilkins on PROD1PC63 with BILLS
(G) Upon request of the Secretary, the or-
ganization or entity furnishes such information 
to the Secretary that the Secretary determines 
necessary to perform an assessment of— 
(i) the training conducted by the orga-
nization or entity; and 
(ii) the applicability of the training 
over such periods of time as the Secretary 
determines appropriate. 
(3) CONSIDERATION OF PAST PERFORMANCE.— 
In determining whether to make payment under the 
pilot project to an organization or entity offering 
training, the Secretary shall consider the rate of suc-
cess of the organization or entity in the training of 
individuals to own and successfully operate a fran-
chise enterprise. 
(4) AUTHORITY FOR THE USE OF STATE AP-
PROVING
AGENCIES
FOR
APPROVAL
OF
TRAINING 
AND ORGANIZATIONS OR ENTITIES.—To the extent 
that the Secretary determines practicable, State ap-
proving agencies may, in lieu of the Secretary, ap-
prove training, and organizations and entities offer-
ing such training, under this section. 
(d) ENTITLEMENT CHARGES.— 
VerDate Nov 24 2008 
21:47 Feb 11, 2009
Jkt 079200
PO 00000
Frm 00006
Fmt 6652
Sfmt 6201
E:\BILLS\H942.IH
H942
rwilkins on PROD1PC63 with BILLS
amount of educational assistance paid such indi-
vidual for such training costs by the full-time 
monthly institutional rate of educational assistance 
which, except for subsection (b)(1), such individual 
would otherwise be paid under such chapter. 
(e) ADMINISTRATION.—Except as otherwise specifi-
cally provided in this section or chapter 30, 32, 35, or 
36 of title 38, United States Code, or chapters 1606 or 
1607 of title 10, United States Code, in implementing this 
section and making payment under the applicable provi-
sion of law referred to in subsection (a) of training costs 
associated with the purchase of a franchise enterprise, the 
training is deemed to be a ‘‘course’’ and the organization 
or entity that offers such training is deemed to be an ‘‘in-
stitution’’ or ‘‘educational institution’’, respectively, as 
those terms are applied under and for purposes of sections 
3671, 3673, 3674, 3678, 3679, 3680(a), 3680A, 3681, 
3682, 3683, 3685, 3690, 3691, and 3696 of title 38, 
United States Code. 
(f) RULE OF CONSTRUCTION.—Payments under this 
section shall not be construed as payment for on-job train-
ing benefits under title 38, United States Code. 
(g) IMPLEMENTATION.—The Secretary shall imple-
ment the pilot project under this section as soon as prac-
VerDate Nov 24 2008 
21:47 Feb 11, 2009
Jkt 079200
PO 00000
Frm 00009
Fmt 6652
Sfmt 6201
E:\BILLS\H942.IH
H942
rwilkins on PROD1PC63 with BILLS
ticable, but in no case later than the date that is 18 
months after the date of the enactment of this Act. 
(h) GAO EVALUATION AND REPORT.— 
(1) EVALUATION.—The Comptroller General of 
the United States shall conduct periodic evaluations 
of the pilot project. 
(2) REPORT.—Not later than the date that is 
the end of the third year of the pilot project, the 
Comptroller General shall submit to Congress a re-
port on the evaluations conducted under paragraph 
(1). The report shall include the following informa-
tion: 
(A) The number of individuals who partici-
pated in the pilot project. 
(B) The number of franchise enterprises 
operated by such individuals by reason of such 
participation. 
(C) The aggregate payments made by the 
Secretary of Veterans Affairs under the pilot 
project. 
(D) Recommendations for the continuation 
of the pilot project. 
VerDate Nov 24 2008 
21:47 Feb 11, 2009
Jkt 079200
PO 00000
Frm 00010
Fmt 6652
Sfmt 6201
E:\BILLS\H942.IH
H942
rwilkins on PROD1PC63 with BILLS
(E) Recommendations for such other ad-
ministrative action or legislation as the Comp-
troller General determines to be appropriate. 
Æ 
VerDate Nov 24 2008 
21:47 Feb 11, 2009
Jkt 079200
PO 00000
Frm 00011
Fmt 6652
Sfmt 6301
E:\BILLS\H942.IH
H942
rwilkins on PROD1PC63 with BILLS