SEC. 2. PROGRAM ON PROVISION OF CAREER TRANSITION 
SERVICES TO YOUNG VETERANS. 
(a) IN GENERAL.—Subchapter II of chapter 33 of 
title 38, United States Code, is amended by adding at the 
end the following new section: 
‘‘§ 3320. Career transition internship program 
‘‘(a) IN GENERAL.—The internship program de-
scribed in subsection (b) shall be deemed to be an ap-
proved program of education for purposes of this chapter. 
‘‘(b) INTERNSHIP PROGRAM.—The Secretary of Vet-
erans Affairs shall establish a program to match individ-
uals entitled to educational assistance under this chapter 
with eligible employers providing internships for the pur-
pose of— 
‘‘(1) providing such individuals with work expe-
rience in the civilian sector; 
‘‘(2) addressing the growing skills gap in the 
United States economy; 
‘‘(3) increasing the marketable skills of such in-
dividuals; and 
‘‘(4) assisting such individuals in obtaining 
long-term employment. 
‘‘(c) ELIGIBLE EMPLOYERS.— 
‘‘(1) IN GENERAL.—For purposes of the pro-
gram, an eligible employer is an employer deter-
mined by the Secretary to meet such criteria for 
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participation in the program as the Secretary shall 
establish for purposes of the program. 
‘‘(2) PAST
PERFORMANCE
ON
CERTAIN
MAT-
TERS.—The criteria established by the Secretary 
under paragraph (1) may include past performance 
of an employer with respect to the following: 
‘‘(A) Job training, basic skills training, 
and related activities. 
‘‘(B) Financial accountability. 
‘‘(C) Demonstrated need to hire, desire to 
grow, and plan to grow. 
‘‘(D) Demonstrated high potential for 
growth and long-term job creation. 
‘‘(3) FOR-PROFIT
AND
NOT-FOR-PROFIT
EM-
PLOYERS.—The employers determined by the Sec-
retary to be eligible employers under paragraph (1) 
may include both for-profit and not-for-profit em-
ployers. 
‘‘(4) SMALL
BUSINESS
CONCERNS.—In deter-
mining employers to be eligible employers under 
paragraph (1), the Secretary shall ensure that small 
business concerns (under the meaning given that 
term under section 3(a) of the Small Business Act 
(15 U.S.C. 632(a))) are afforded opportunities to 
participate in the program. 
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‘‘(5) MANUFACTURING.—In determining em-
ployers to be eligible employers under paragraph (1), 
the Secretary shall give special consideration to em-
ployers in the manufacturing sector. 
‘‘(6) EXCLUSIONS.—The following employers 
may not be determined to be eligible employers 
under paragraph (1): 
‘‘(A) An agency of the Federal Govern-
ment or a State or local government. 
‘‘(B) An employer that has previously par-
ticipated in the program and, as determined by 
the Secretary, failed to abide by any require-
ment of the program. 
‘‘(C) An employer that cannot give an as-
surance to the Secretary at the time of applica-
tion for participation in the program under sub-
section (f), and in such manner as the Sec-
retary shall specify pursuant to that subsection, 
on each matter as follows: 
‘‘(i) That the employer has not 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 par-
ticipation in the program. 
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‘‘(ii) That the employer has been in 
good standing with a State business bu-
reau during the period described in clause 
(i). 
‘‘(iii) That the employer is not delin-
quent with respect to payment of any taxes 
or employer contributions described under 
sections 3301 and 3302(a)(1) of the Inter-
nal Revenue Code of 1986 (26 U.S.C. 
3301 and 3302(a)(1)). 
‘‘(iv) That the employer would not re-
quest the placement of an additional eligi-
ble individual under the program, if after 
such additional placement, the number of 
eligible individuals placed in internships at 
such employer under the program would 
constitute more than 10 percent of the eli-
gible employer’s workforce. For purposes 
of the previous sentence, being an intern 
under the program placed at an employer 
shall be considered part of the employer’s 
workforce. 
‘‘(v) That the employer has the inten-
tion of retaining eligible participants after 
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such participants have completed participa-
tion in the program. 
‘‘(d) INTERNSHIPS.— 
‘‘(1) IN GENERAL.—For each individual entitled 
to educational assistance under this chapter whom 
the Secretary approves for participation in the pro-
gram established under subsection (b), the Secretary 
shall attempt to place such individual in an intern-
ship on a full-time basis with an eligible employer 
that the Secretary has approved for participation in 
the program. For each month such an individual 
participates in such an internship on a full-time 
basis, the Secretary shall pay to the individual the 
amount of educational assistance described in sec-
tion 3313(g)(3)(B) of this title. 
‘‘(2) DURATION.—Each internship under the 
program shall be for a period of at least 180 days 
but not more than one year. 
‘‘(3) EMPLOYMENT STATUS.—For purposes of 
the Patient Protection and Affordable Care Act 
(Public Law 111–148), an individual placed in an 
internship with an eligible employer under the pro-
gram shall be considered an employee of the Depart-
ment of Veterans Affairs and not the eligible em-
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ployer during the period of such internship under 
the program. 
‘‘(4) RELATION
TO
OTHER
FEDERAL
ASSIST-
ANCE.—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. 
‘‘(5) CERTIFICATION.—For each month that an 
individual participates in an internship under the 
program established by subsection (b), the individual 
and the eligible employer providing the internship 
shall submit to the Secretary certification that the 
individual worked at least 35 hours each week for 
the eligible employer performing functions that pro-
vided the individual with valuable experience. 
‘‘(e) PARTICIPATION.— 
‘‘(1) APPLICATION.— 
‘‘(A) IN GENERAL.—An eligible employer 
or individual seeking to participate in the pro-
gram shall submit to the Secretary an applica-
tion therefor at such time, in such manner, and 
containing such information as the Secretary 
shall specify. 
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