I
106TH CONGRESS
1ST SESSION
H. R. 606
To amend titles 5, 10, and 38, United States Code, to make improvements
in benefits and services for members and veterans of the United States
Armed Forces recommended by the Congressional Commission on
Servicemembers and Veterans Transition Assistance, and for other pur-
poses.
IN THE HOUSE OF REPRESENTATIVES
FEBRUARY 4, 1999
Mr. STUMP (for himself and Mr. EVANS) (both by request) introduced the fol-
lowing bill; which was referred to the Committee on Veterans’ Affairs,
and in addition to the Committees on Armed Services, and Government
Reform, 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 amend titles 5, 10, and 38, United States Code, to
make improvements in benefits and services for members
and veterans of the United States Armed Forces rec-
ommended 
by 
the 
Congressional 
Commission 
on
Servicemembers and Veterans Transition Assistance, and
for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) SHORT TITLE.—This Act may be cited as the
‘‘Servicemembers and Veterans Transition Services Im-
provement Act of 1999’’.
(b) TABLE OF CONTENTS.—The table of contents for
this Act is as follows:
Sec. 1. Short title; table of contents.
Sec. 2. References to the United States Code.
TITLE I—EDUCATION
Sec. 101. Montgomery GI Bill enhancements.
Sec. 102. Reengineering of approval process for VA-funded education programs.
TITLE II—EMPLOYMENT AND TRAINING
Sec. 201. Updating and improvement of job counseling, training, and placement
services.
Sec. 202. Vocational rehabilitation for service-disabled veterans.
Sec. 203. Transition Assistance Program funding.
Sec. 204. Timing of preseparation counseling.
Sec. 205. Elimination of inequity in transitional benefits for involuntary
separatees.
Sec. 206. Department of Veterans Affairs support of transition assistance.
Sec. 207. Priorities for employment services.
Sec. 208. Marketing veterans to employers.
Sec. 209. Veterans and servicemembers electronic website.
Sec. 210. Elimination of retired pay reduction for federally employed regular
officers.
Sec. 211. Elimination of 180-day bar to Defense Department employment.
Sec. 212. Relief from maximum age limits on hiring of federal firefighters and
law enforcement officers.
Sec. 213. Leave accrual for federal employees who are Vietnam-era veterans.
Sec. 214. Employment of veterans by contractors and grantees of the Depart-
ments of Defense, Labor, and Veterans Affairs.
TITLE III—HEALTH CARE
Sec. 301. Transition health care for recently separated servicemembers.
Sec. 302. Procurement of medical items.
Sec. 303. Joint formulary.
Sec. 304. Uniform product numbers for medical and surgical supplies.
Sec. 305. Compatible computerized systems.
Sec. 306. Medical research.
Sec. 307. Pilot program for furnishing veterans fee-basis care under TRICARE
contracts.
Sec. 308. Reviews of graduate medical education programs.
Sec. 309. Services for homeless veterans.
TITLE IV—ECONOMIC EQUITY
PART A—HOME-LOAN GUARANTY PROGRAM
Sec. 401. Limitation on basic entitlement.
Sec. 402. Loan guaranty eligibility for reservists.
Sec. 403. Prospective elimination of loan fee.
Sec. 404. Pilot program of revised procedures in default cases.
PART B—OTHER PROGRAMS
Sec. 411. Participation in federal employees’ Thrift Savings Plan.
Sec. 412. Enhancement of economic opportunity through entrepreneurship.
Sec. 413. Termination of the Persian Gulf War period for purposes of veterans’
benefits.
TITLE V—ORGANIZATIONAL RESTRUCTURING
Sec. 501. Joint health-care policy staff.
Sec. 502. Care for Department of Defense and Department of Veterans Affairs
beneficiaries at the other system’s facilities.
Sec. 503. Study of infrastructure realignment.
Sec. 504. Congruent geographic administrative structures.
Sec. 505. Utilization of VA medical facilities as TRICARE providers.
SEC. 2. REFERENCES TO THE UNITED STATES CODE.
Except as otherwise expressly provided, whenever in
this Act an amendment or repeal is expressed in terms
of an amendment to, or a repeal of, a section or other
provision, the reference shall be considered to be made to
a section or other provision of the United States Code.
TITLE I—EDUCATION
SEC. 101. MONTGOMERY GI BILL ENHANCEMENTS.
(a) BASIC BENEFIT INCREASE.—Effective with re-
spect to educational assistance allowances for months be-
ginning after September 1999, section 3015 of title 38
is amended—
(1) in subsection (a)(1), by striking out ‘‘$528’’
and inserting in lieu thereof ‘‘$600’’; and
(2) in subsection (b)(1), by striking out ‘‘$429’’
and inserting in lieu thereof ‘‘$488’’.
(b) REPEAL OF PAY REDUCTION AND ELECTION OF
BENEFITS.—
(1) Section 3011 of title 38 is amended—
(A) by amending subsection (b) to read as
follows:
‘‘(b) Within 90 days after an individual initially en-
ters on active duty as a member of the Armed Forces,
the Secretary of Defense shall notify the individual of the
educational assistance benefits available under this chap-
ter and the eligibility requirements that must be met to
receive those benefits.’’; and
(B) in subsection (c), by striking out para-
graph (1) and redesignating paragraphs (2) and
(3) as paragraphs (1) and (2), respectively.
(2) Section 3012 of title 38 is amended—
(A) by amending subsection (c) to read as
follows:
‘‘(c) Within 90 days after an individual initially en-
ters on active duty as a member of the Armed Forces,
the Secretary of Defense shall notify that individual of the
educational assistance benefits available under this chap-
ter and the eligibility requirements that must be met to
receive those benefits.’’; and
(B) in subsection (d), by striking out para-
graph (1) and redesignating paragraphs (2) and
(3) as paragraphs (1) and (2), respectively.
(3) The amendments made by this subsection
shall take effect with respect to reductions of basic
pay for the month during which this Act is enacted
and subsequent months.
(c) ENROLLMENT
OF CERTAIN VEAP PARTICI-
PANTS.—Section 3018C of title 38 is amended—
(1) in subsection (a)—
(A) by amending clause (1) to read as fol-
lows:
‘‘(1)(A) is a participant on October 9, 1996, in
the educational benefits program provided in chapter
32, or (B) disenrolled from participation in that pro-
gram before October 9, 1996;’’;
(B) in clause (4), by striking out ‘‘after the
date on which the individual makes the election de-
scribed in paragraph (5)’’ and inserting in lieu
thereof ‘‘before the effective date of the election de-
scribed in clause (5)’’; and
(C) in clause (5), by inserting after ‘‘October 9,
1996,’’ the following ‘‘in the case of an individual
described in clause (1)(A), or on October 1, 1999,
in the case of an individual described in clause
(1)(B)’’;
(2) by redesignating the text of subsection (d)
as paragraph (1) of that subsection and adding after
that paragraph a new paragraph (2) with the follow-
ing text: ‘‘The requirements of sections 3011(a)(3)
and 3012(a)(3) shall apply to an individual who
makes the election described in subsection (a)(5), ex-
cept that the completion of service referred to in
those sections shall mean the completion of the pe-
riod of active duty being served by the individual on
October 9, 1996.’’.
(d) ACCELERATED PAYMENTS.—(1) Section 3014 of
title 38 is amended by designating the existing text as sub-
section (a) and adding at the end the following new sub-
section:
‘‘(b)(1) Notwithstanding any other provisions of this
chapter, the Secretary, pursuant to regulations which the
Secretary shall prescribe, may make accelerated payments
of the basic educational assistance allowance.
‘‘(2) An accelerated payment may be made only to
an individual who has made a request for that type of pay-
ment.
‘‘(3) In computing the amount of an accelerated pay-
ment that covers a period during which an increase under
section 3015(g) takes effect, the Secretary shall include
that increase with respect to the months to which it ap-
plies.
‘‘(4) For each accelerated payment made to an indi-
vidual, the individual’s entitlement under this subchapter
shall be charged at the same rate at which entitlement
would be charged if the individual had received a monthly
educational assistance allowance for the period of edu-
cational pursuit covered by the accelerated payment.
‘‘(5) The regulations referred to in paragraph (1)
shall include the requirements, conditions, and methods
for the request, issuance, delivery, certification of receipt
and use, and recovery of overpayment of an accelerated
payment.
‘‘(6) For the purposes of this subsection, the term
‘accelerated payment’ means—
‘‘(A) in the case of a course leading to a stand-
ard college degree, a payment made at the beginning
of a quarter, semester, or term in a lump-sum
amount equivalent to the aggregate monthly allow-
ance otherwise payable under this chapter for the
entire quarter, semester, or term; or
‘‘(B) in the case of a course other than a course
leading to a standard college degree, a payment
made (i) at the latter of the beginning of the course
or a reasonable time after the individual’s request,
and (ii) in the amount requested by the individual,
up to the aggregate monthly allowance otherwise
payable under this subchapter for the entire
course.’’.
(e) ENHANCED BENEFITS FOR FOUR YEARS OF AC-
TIVE-DUTY
SERVICE.—Chapter 30 of title 38 is
amended—
(1) by redesignating subchapter IV as sub-
chapter V and sections 3031 through 3036 as 3041
through 3046, respectively; and
(2) by inserting the following new subchapter
IV after subchapter III:
‘‘SUBCHAPTER IV—ENHANCED EDUCATIONAL
ASSISTANCE
‘‘§ 3031. Enhanced educational assistance entitlement
‘‘(a) Except as provided in subsection (b), each
individual—
‘‘(1) who, after September 30, 1999, first en-
ters on active duty, reenlists or extends an enlist-
ment on active duty as a member of the Armed
Forces, or, in the case of an officer, continues to
serve on active duty after that date, and, from the
date of such entry, reenlistment, extension, or
continuation—
‘‘(A) serves a continuous period of active
duty of at least four years in the Armed Forces;
or
‘‘(B) serves on active duty in the Armed
Forces and is discharged or released from ac-
tive duty (i) for a service-connected disability
for a medical condition which preexisted such
service on active duty and which the Secretary
determines is not service connected, for hard-
ship, or for a physical or mental condition that
was not characterized as a disability and did
not result from the individual’s own willful mis-
conduct but did interfere with the individual’s
performance of duty, as determined by the Sec-
retary concerned in accordance with regulations
prescribed by the Secretary of Defense; (ii) for
the convenience of the Government, after hav-
ing completed not less that 42 months of con-
tinuous active duty; or (iii) involuntarily for the
convenience of the Government as a result of a
reduction in force, as determined by the Sec-
retary concerned in accordance with regulations
prescribed by the Secretary of Defense;
‘‘(2) who completed the requirements of a sec-
ondary school diploma (or equivalency certificate)
not later than the original ending date of the indi-
vidual’s period of active duty described in clause (1)
regardless of whether the individual is discharged or
released from active duty on such date, except that
an individual may meet the requirement of this
clause by having been granted credit of the equiva-
lent of 12 semester hours in a program of education
leading to a standard college degree before the end
of the individual’s period of active duty described in
clause (1); and
‘‘(3) who, after completion of the service de-
scribed in clause (1)—
‘‘(A) continues on active duty;
‘‘(B) is discharged from active duty with
an honorable discharge;
‘‘(C) is released after service on active duty
characterized by the Secretary concerned as
honorable service and is placed on the retired
list, is transferred to the Fleet Reserve or Fleet
Marine Corps Reserve, or is placed on the tem-
porary disability retired list; or
‘‘(D) is released from active duty for fur-
ther service in a reserve component of the
Armed Forces after service on active duty char-
‘‘(B) that an individual in the Selective Reserve
was ordered to perform under section 12301, 12302,
12304, 12306, or 12307 of title 10 for a period of
less than 2 years.
‘‘(d)(1) For the purposes of this section, a member
referred to in paragraph (2) who serves the periods of ac-
tive duty referred in paragraph (2) shall be deemed to
have served a continuous period of active duty the length
of which is the aggregate length of the periods of active
duty referred to in paragraph (2).
‘‘(2) This subsection applies to a member who—
‘‘(A) after a period of continuous active duty of
not more than 12 months, is discharged or released
from active duty under subclause (i) or (iii) of sub-
section (a)(1)(B); and
‘‘(B) after that discharge or release, reenlists or
re-enters on a period of active duty.
‘‘(e) Notwithstanding section 3002(6)(A), a period
during which an individual is assigned full-time by the
Armed Forces to a civilian institution for a course of edu-
cation as described in section 3002(6)(A) shall not be con-
sidered a break in a continuous period of active duty of
that individual for the purposes of this section.
‘‘(f)(1) Notwithstanding section 3002(6)(B), a mem-
ber referred to in paragraph (2) of this subsection who
serves the periods of active duty referred to in subpara-
graphs (A) and (C) of that paragraph shall be deemed
to have served a continuous period of active duty the
length of which is the aggregate length of the periods of
active duty referred to in that paragraph.
‘‘(2) This subsection applies to a member who—
‘‘(A) during the period of active duty described
in subsection (a)(1), commences pursuit of a course
of education—
‘‘(i) at an academy referred to in sub-
section (b)(1); or
‘‘(ii) at a post-secondary school for the
purpose of preparation for enrollment at such
an academy;
‘‘(B) fails to complete the course of education;
and
‘‘(C) re-enters on a period of active duty.
‘‘§ 3032. Duration of educational assistance
‘‘(a) Subject to section 3695 and except as provided
in subsection (b), each individual entitled to educational
assistance under section 3031 is entitled to a monthly edu-
cational assistance allowance under this subchapter for a
period or periods not to exceed a total of 36 months (or
the equivalent thereof in part-time educational assistance).
‘‘(b) Subject to section 3695, in the case of an indi-
vidual described in section 3031(a)(1)(B) (i) or (iii) who
is not also described in section 3031(a)(1)(A), the individ-
ual is entitled to one month of educational assistance bene-
fits under this subchapter for each month of continuous
active duty served by the individual beginning with the
date on which the entry on active duty, reenlistment, en-
listment extension, or continuation applicable to that indi-
vidual under section 3031(a)(1) begins.
‘‘§ 3033. Transfer of entitlement
‘‘(a) Each Secretary concerned may, in that Sec-
retary’s discretion and in accordance with regulations that
the Secretary of Defense shall prescribe, authorize an indi-
vidual entitled to educational assistance under this sub-
chapter to transfer that entitlement to the individual’s
spouse or child, or any combination of the individual’s
spouse and children.
‘‘(b) The regulations referred to in subsection (a)
shall include, among other provisions that the Secretary
of Defense may wish to include, the following:
‘‘(1) The transferor must designate the person
or persons to whom that entitlement is transferred
and, if the transfer is to more than one person si-
multaneously, the percentage of the entitlement
being transferred to each.
‘‘(2) The transferor must designate the periods
for which the transferor’s entitlement are being
transferred to each transferee.
‘‘(3) The transferor may at any time cancel or
modify the transfer by written notice to the Sec-
retary concerned.
‘‘(4) Each transferee will be subject to the same
terms, conditions, and requirements as otherwise
would apply to the transferor except that, subject to
paragraph (2) and notwithstanding section 3031, a
child who is a transferee may use the transferred en-
titlement at any time before the child’s twenty-sixth
birthday.
‘‘(5) Any educational assistance provided to a
transferee shall be charged against the remaining
entitlement of the transferor.
‘‘(c) The transferor and any transferee shall be joint-
ly and severally liable in accordance with section 3685 for
repayment of any overpayment of benefits to the trans-
feree.
‘‘§ 3034. Payment of educational expenses
‘‘(a) The Secretary shall pay to each individual enti-
tled to educational assistance under this subchapter who
is pursuing an approved program of education—
‘‘(1) an educational assistance allowance as pro-
vided in section 3035; and
‘‘(2) in accordance with regulations that the
Secretary shall prescribe, a sum equal to the reason-
able cost of books and supplies determined to be re-
quired by similarly circumstanced non-veterans for
the same course for which the individual is being
paid such allowance or a similar course in terms of
the cost of books and supplies.
‘‘(b) The Secretary shall pay to the educational insti-
tution providing the course for which the individual is
being paid an educational assistance allowance under sec-
tion 3035 the actual cost of tuition and fees otherwise pay-
able by the individual for the pursuit of the course, not
to exceed the amount charged to similarly circumstanced
non-veterans.
‘‘§ 3035. Amount of educational assistance
‘‘(a) Except as provided in section 3042, the edu-
cational assistance allowance under this subchapter shall
be paid—
‘‘(1) at the monthly rate of $400 (as that
amount may be increased pursuant to subsection
(b)) for an approved program of education pursued
on a full-time basis; or
‘‘(2) at an appropriately reduced rate, as deter-
mined under regulations that the Secretary shall
prescribe, for an approved program of education
pursued on less than a full-time basis.
‘‘(b) With respect to any fiscal year beginning after
fiscal year 2000, the Secretary shall increase the rate paid
under subsection (a)(1) for the previous fiscal year by a
percentage equal to the percentage by which—
‘‘(1) the Consumer Price Index (all items,
United States city average) for the 12-month period
ending on the June 30 preceding the beginning of
the fiscal year for which the increase is made, ex-
ceeds
‘‘(2) such Consumer Price Index for the 12-
month period preceding the 12-month period de-
scribed in clause (1).
‘‘(c) Notwithstanding any other provision of law, the
educational assistance allowance payable under this sec-
tion shall not be countable as income for purposes of de-
termining eligibility for education grants or loans under
any other statute of the United States.
‘‘§ 3036. Tutorial assistance
‘‘(a) An individual entitled to an educational assist-
ance allowance under this subchapter shall also be entitled
to benefits provided an eligible veteran under section
3492, subject to the conditions applicable to an eligible
veteran under that section.
‘‘(b) The amount of benefits payable under this sec-
tion may not exceed $100 per month, for a maximum of
12 months, or until a maximum of $1,200 is used.
‘‘(c)(1) An individual’s period of entitlement to the
educational assistance allowance under this chapter shall
be charged only with respect to the amount of tutorial as-
sistance paid to the individual in excess of $600.
‘‘(2) An individual’s period of entitlement to edu-
cational assistance under this subchapter shall be charged
at the rate of one month for each amount of assistance
paid to the individual under this section in excess of $600
that is equal to the amount of the monthly educational
assistance allowance that the individual is otherwise eligi-
ble to receive under section 3035(a)(1).
(f) CLERICAL AND CONFORMING AMENDMENTS.—(1)
Section 3002 of title 38 is amended by inserting at the
end the following new paragraph:
‘‘(9) The term ‘enhanced educational assistance’
means educational assistance provided under subchapter
IV.’’.
(2) Section 3011 is amended in subsection (f)(1) and
(g) by striking out ‘‘chapter’’ each place it appears and
inserting in lieu thereof ‘‘subchapter’’.
(3) Section 3015(a) of title 38 is amended in the first
sentence by striking out ‘‘section 3032’’ and inserting in
lieu thereof ‘‘section 3042’’.
(4) Section 3017(c) of title 38 is amended by striking
out ‘‘section 3035(b)(1)’’ and inserting in lieu thereof
‘‘section 3045(b)(1)’’.
(5) Section 3019 of title 38 is amended in subsections
(a) and (c)(2) by striking out ‘‘chapter’’ each place it ap-
pears and inserting in lieu thereof ‘‘subchapter’’.
(6) Section 3022(a) of title 38 is amended by striking
out ‘‘section 3032’’ and inserting in lieu thereof ‘‘section
3042’’.
(7) Section 3041 of title 38 (as redesignated by sub-
section (e)(1)) is amended—
(A) in subsection (e), by inserting ‘‘or 3032’’
after ‘‘section 3013’’;
(B) in subsection (f), by inserting ‘‘or 3032’’
after ‘‘section 3013’’; and—
(C) in subsection (g), by inserting ‘‘or
3031(a)(1)(B)(iii)’’ 
after 
‘‘section
3011(a)(1)(A)(ii)(III)’’.
(8) Section 3042 of title 38 (as redesignated by sub-
section (e)(1)) is amended—
(A) in subsection (d)(1), by inserting ‘‘or sec-
tion 3034’’ after ‘‘if applicable,’’;
(B) in subsection (f)(3), by inserting ‘‘, or sub-
section (a)(1) of section 3035,’’.
(9) Section 3044 of title 38 (as redesignated by sub-
section (e)(1)) is amended in subsection (c) by striking
out ‘‘section 3032(b)’’ and inserting in lieu thereof ‘‘sec-
tion 3042(b)’’.
(10) Section 3680A(d)(2)(A) of title 38 is amended
by striking out ‘‘3034(a)(3)’’ and inserting in lieu thereof
‘‘3044(a)(3)’’.
(11) Section 3688(a)(6) of title 38 is amended by
striking out ‘‘section 3034(a)(3),’’ and inserting in lieu
thereof ‘‘section 3044(a)(3),’’.
(12) Section 16133(b) of title 10 is amended—
(A) in paragraph (2), by striking out ‘‘section
3031(f)’’ and inserting in lieu thereof ‘‘section
3041(f)’’; and
(B) in paragraph (3), by striking out ‘‘section
3031(d)’’ and inserting in lieu thereof ‘‘section
3041(d)’’.
(13) The table of sections at the beginning of chapter
30 of title 38 is amended by striking out the items relating
to subchapter IV and inserting in lieu thereof the follow-
ing:
‘‘SUBCHAPTER IV—ENHANCED EDUCATIONAL ASSISTANCE
‘‘3031. Enhanced educational assistance entitlement.
‘‘3032. Duration of educational assistance.
‘‘3033. Transfer of entitlement.
‘‘3034. Payment of educational expenses.
‘‘3035. Amount of educational assistance.
‘‘3036. Tutorial assistance.
SUBCHAPTER V—TIME LIMITATION FOR USE OF ELIGIBILITY AND
ENTITLEMENT; GENERAL AND ADMINISTRATIVE PROVISIONS
‘‘3041. Time limitation for use of eligibility and entitlement.
‘‘3042. Limitations on educational assistance for certain individuals.
‘‘3043. Bar to duplication of educational assistance benefits.
‘‘3044. Program administration.
‘‘3045. Allocation of administration and of program costs.
‘‘3046. Reporting requirement.’’.
SEC. 102. REENGINEERING OF APPROVAL PROCESS FOR
VA-FUNDED EDUCATION PROGRAMS.
(a) RENAMING OF STATE APPROVING AGENCIES.—
Section 3671 of title 38 is amended—
(1) in subsection (a), by striking out ‘‘State ap-
proving agency’’ inserting in lieu thereof ‘‘State vet-
erans education development agency’’; and
(2) in subsection (b), by striking out ‘‘State ap-
proving agency’’ each place it appears and inserting
in lieu thereof ‘‘State veterans education develop-
ment agency’’.
(b) DEVELOPMENT OF ON-JOB AND APPRENTICE-
SHIP TRAINING PROGRAMS.—(1) Subsection (d) of section
3672 is amended to read as follows:
‘‘(d) Each State veterans education development
agency shall—
‘‘(1) actively promote the development of pro-
grams of on-job training (including programs of ap-
prenticeship) for the training of veterans under this
title; and
‘‘(2) in carrying out paragraph (1), give priority
to developing programs that can provide training to
veterans with disabilities.’’.
(2) Section 3673(a) of title 38 is amended by striking
out ‘‘institutions, and particular attention should be
given’’ and inserting in lieu thereof ‘‘and training institu-
tions, and particular attention should be given to the de-
velopment of on-job training (including apprenticeship)
programs,’’.
(c) ENHANCED APPROVAL PROCESS FOR ACCRED-
ITED
COURSES.—(1) Section 3675 of title 38 is
amended—
(A) in the material preceding subparagraph (A)
of paragraph (1) of subsection (a)—
(i) by striking out ‘‘may’’ and inserting in
lieu thereof ‘‘shall’’; and
(ii) by inserting ‘‘that meets all the re-
quirements of this section’’ after ‘‘institution’’;
and
(B) in paragraph (1)(A) of subsection (a), by
inserting ‘‘described in paragraph (2)(A)’’ before the
semicolon at the end;
(C) in paragraph (2) of subsection (a), by in-
serting at the end following new subparagraph:
‘‘(C) Notwithstanding any other provision of this sec-
tion, a State veterans education development agency may,
in the case of an educational institution that offers courses
approved under this section, review and approve or dis-
approve any course or courses newly offered by that edu-
cational institution.’’;
(D) in paragraph (2)(B) of subsection (a), by
striking out ‘‘may utilize’’ and inserting in lieu
thereof ‘‘shall use’’; and
(E) in subsection (b), by striking out paragraph
(3).
(e) EXPANSION OF WAIVER OF NON-ACCREDITED
COURSE REFUND REQUIREMENTS.—Section 3676 of title
38 is amended in subsection (d)(4) by striking out ‘‘re-
gional’’ and inserting in lieu thereof ‘‘regional, profes-
sional, or trade’’.
(f) CLERICAL AMENDMENTS.—(1) Chapter 36 of title
38 is amended by striking out ‘‘State approving agency’’
each place it appears after the other amendments in this
section are made and inserting in lieu thereof ‘‘State vet-
erans educational development agency’’.
(2) Such chapter 36 is further amended in the table
of sections at the beginning of the chapter, by striking
out:
‘‘SUBCHAPTER I—STATE APPROVING AGENCIES’’
and inserting in lieu thereof the following:
‘‘SUBCHAPTER I—STATE VETERANS EDUCATION DEVELOPMENT AGENCIES’’.
(3) Such chapter 36 is further amended by striking
out the heading relating to subchapter I after the table
of sections and inserting in lieu thereof the following:
‘‘SUBCHAPTER I—STATE VETERANS
EDUCATIONAL DEVELOPMENT AGENCIES’’.
TITLE II—EMPLOYMENT AND
TRAINING
SEC. 201. UPDATING AND IMPROVEMENT OF JOB COUNSEL-
ING, TRAINING, AND PLACEMENT SERVICES.
(a) PROGRAM REVISIONS.—(1) Paragraph (1) of sec-
tion 4100 of title 38 is amended to read as follows:
‘‘(1) As long as unemployment and under-
employment continue as serious problems among dis-
abled veterans, veterans with existing employment
barriers, and veterans recently separated from active
duty, alleviating unemployment and underemploy-
ment among these veterans is a national responsibil-
ity.’’.
(2) Section 4101 of title 38 is amended—
(A) by amending paragraphs (1) through (3) to
read as follows:
‘‘(1) The term ‘disabled veteran’ has the same
meaning provided in section 4211(3).
(ii) in clause (B), by striking out ‘‘such
specialists and representatives’’ and inserting in
lieu thereof ‘‘Veterans’ Case Managers and Vet-
erans’ Employment Facilitators’’.
(D) by striking out paragraphs (6) and (7) of
subsection (b) and inserting in lieu thereof the fol-
lowing:
‘‘(6) ensure that all grants and contracts under
section 4104 are awarded on a competitive basis;
and
‘‘(7) monitor and supervise on a continuing
basis the distribution and use of funds provided for
use in the States under section 4104.’’;
(E) in subsection(c)(1)—
(i) by striking out ‘‘of this section in order
to carry out sections 4103A and 4104(a) of this
title’’ and inserting in lieu thereof ‘‘in order to
carry out sections 4104, 4104A, and 4104B’’;
and
(ii) by striking out ‘‘4103A or 4104 of this
title’’ and inserting in lieu thereof ‘‘4104,
41104A, or 4104B’’;
(F) in subsection (c)(2)—
(i) by striking out ‘‘4103A or 4104’’ and
inserting in lieu thereof ‘‘4104A or 4104B’’;
and
(ii) in clause (A), by striking out (I) the
comma after ‘‘evaluations’’, and (II) ‘‘of the
performance of local employment offices in the
state,’’; and
(G) in subsection (d), by striking out ‘‘Job
Training Partnership Act’’ and inserting in lieu
thereof ‘‘Workforce Investment Act of 1998.’’.
(5) Section 4103 of title 38 is amended—
(A) in subsection (b)(1)(A)(i), by striking out
all after ‘‘veteran’’ and inserting in lieu thereof a
comma;
(B) in subsection (b)(2), by striking out ‘‘at-
tached to the public employment service system of
the State to which they are assigned. They shall be’’;
and
(C) in subsection (c)—
(i) by striking out ‘‘functionally supervise’’
in clause (1)(A) and inserting in lieu thereof
‘‘oversee’’;
(ii) in clause (1)(B)—
(I) by striking out ‘‘be functionally re-
sponsible for the supervision of’’ and insert
in lieu thereof ‘‘oversee’’; and
(II) by striking out ‘‘Veterans’ Job
Training Act (Public Law 98–77; 29
U.S.C. 1721 note)’’ and inserting in lieu
thereof ‘‘Workforce Investment Act of
1998’’;
(iii) in clause (6), by striking out ‘‘veterans
of the Vietnam era, disabled veterans’’ and in-
serting in lieu thereof ‘‘disabled veterans, veter-
ans with existing employment barriers, and re-
cently separated veterans’’; and
(iv) by striking out ‘‘monitor,’’ and all that
follows through ‘‘representatives,’’ and inserting
in lieu thereof ‘‘monitor’’.
(6) Chapter 41 of title 38 is amended by striking out
sections 4103A, 4104, and 4104A and inserting in lieu
thereof the following:
‘‘§ 4104. Grants and contracts
‘‘(a) The Secretary is authorized to make grants to
or to contract with entities which agree to provide employ-
ment and training services for veterans under this chapter.
The Secretary is authorized to provide such grants or
enter into such contracts with eligible entities to pay all
or part of the cost of programs which carry out all or some
of the purposes of this chapter. Each such grant or con-
tract shall be awarded on a competitive basis and shall
cover the furnishing of services within an entire State or,
as the Secretary determines appropriate under subsection
(c)(2), part of a State.
‘‘(b)(1) In selecting among entities competing for the
award of a grant or contract for the furnishing of services
of Veterans’ Case Managers under section 4105, and in
assessing the performance of entities furnishing those
services, the Secretary shall take into account the proven
capabilities and records of the entities in achieving positive
employment outcomes. The outcome measurements for
this purpose shall be specified in regulations that the Sec-
retary shall prescribe and shall include, but not be limited
to—
‘‘(A) the numbers of veterans entered into em-
ployment;
‘‘(B) the numbers of veterans receiving various
case-management 
services 
beyond 
employment-
search assistance entered into employment; and
‘‘(C) the numbers of veterans in each of the
foregoing categories of veterans entered into employ-
ment who remain employed in each of the three
years after becoming employed.
‘‘(2) In selecting among entities competing for the
award of a grant or contract for furnishing the services
of Veterans’ Employment Facilitators under section 4106,
and in assessing the performance of entities furnishing
those services, the Secretary shall take into account the
proven capabilities and records of the entities in achieving
positive employment outcomes. The outcome measure-
ments for this purpose shall be specified in regulations
that the Secretary shall prescribe and shall include, but
not be limited to—
‘‘(A) employer contacts resulting in the hiring
of veterans; and
‘‘(B) the satisfaction of participants in transi-
tion assistance program workshops under section
1144 of title 10.
‘‘(c)(1) A grant or contract under this chapter shall
contain such terms and conditions as the Secretary may
require, including terms of payment, the manner of
record-keeping by the grantee or contractor, and any peri-
odic reports required by the Secretary.
‘‘(2) The Secretary may—
‘‘(A) limit a grant or contract under this chap-
ter to a specific geographic area within a State as
determined appropriate by the Secretary; and
‘‘(B) provide more than one grant or contract
for a State, or a specific geographic area in a State,
if the Secretary determines that doing so is nec-
essary for all services and assistance authorized by
this chapter to be provided in that area.
‘‘(d) Applications for grants and contracts under this
chapter shall be submitted at such times, in such form,
and contain such information and assurances as the Sec-
retary may require, including information demonstrating
the capacity and expertise of the applying entity to provide
the services and assistance required by the grant or con-
tract.
‘‘(e) Each grant or contract under this chapter shall
contain a provision requiring the grantee or contractor to
comply with the provisions of this chapter.
‘‘§ 4104A. Veterans’ Case Managers
‘‘(a) The Secretary shall make available through
grants and contracts such funds as may be necessary to
support Veterans’ Case Managers under this section.
‘‘(b) In providing services to eligible veterans under
this section, Veterans’ Case Managers shall give priority,
in the following order, to:
‘‘(1) Disabled veterans.
‘‘(2) Veterans with existing employment bar-
riers.
‘‘(3) Recently separated veterans.
‘‘(c)(1) Subject to subsection (b) and paragraph (2),
each Veterans’ Case Manager shall provide to eligible
veterans—
‘‘(A) a personal assessment of employment
skills and needs, including but not limited to testing,
employment counseling, and individual employability
development plans;
‘‘(B) job development services, including but
not limited to job accommodation for a disability
and marketing individual veterans to specific em-
ployees;
‘‘(C) employment search assistance, including
but not limited to provision of labor market informa-
tion, employment interview techniques, resume prep-
aration, identification and use of job finding re-
sources, and referral to job openings;
‘‘(D) referral to training services, including but
not limited to identification of sources of training
services and assistance with applying for those serv-
ices and being referred to those sources;
‘‘(E) referral to supportive services, including
but not limited to (i) identification of sources of fi-
nancial, legal, counseling, medical, and other services
and assistance not directly related to employment,
and (ii) assistance with applying for those services
and assistance and being referred to those sources;
‘‘(F) monitoring the veteran’s adjustment to
and maintenance of employment, including but not
limited to regular, periodic contact with the veteran
and the employer and monitoring of the employer’s
training.
‘‘(2) Except in the cases of disabled veterans and vet-
erans with existing employment barriers, Veterans’ Case
Managers ordinarily will provide eligible veterans with
only services described in clause (C) of paragraph (1).
‘‘§ 4104B. Veterans’ Employment Facilitators
‘‘(a) The Secretary shall make available through
grants and contracts such funds as may be necessary to
support Veterans’ Employment Facilitators under this
section.
‘‘(b) The only duties of a Veterans’ Employment
Facilitator 
shall 
be 
to 
market 
veterans 
and
servicemembers who are about to become veterans to em-
ployers in the geographic area for which the Facilitator
has responsibility and to participate in the conduct of
transition assistance program workshops under section
1144 of title 10.’’.
(7) Section 4105(b) of title 38 is amended by striking
out ‘‘Veterans’ Job Training Act (Public Law 98–77, 29
U.S.C. 1721 note)’’ and inserting in lieu thereof ‘‘Work-
force Investment Act of 1998’’.
(8) Section 4106(a) of title 38 is amended—
(A) by striking out the fourth sentence;
(B) in the fifth sentence, by striking out ‘‘in all
of the States’’; and
(C) in the sixth sentence, by striking out ‘‘dis-
abled veterans’’ and all that follows through ‘‘4104
of this title’’ and inserting in lieu thereof ‘‘Veterans’
Case Managers under section 4104A and Veterans’
Employment Facilitators under section 4104B’’.
(9) Section 4107 of title 38 is amended—
(A) by amending subsection (a) to read as fol-
lows:
‘‘(a) The Secretary shall establish administrative con-
trols in order to insure that each eligible veteran, espe-
cially disabled veterans, veterans with existing employ-
ment barriers, and recently separated veterans, and each
eligible person who requests assistance under this chapter
shall promptly be placed in a satisfactory job or job train-
ing opportunity or receive some other specific form of as-
sistance designed to enhance the veteran’s or eligible per-
son’s employment prospects substantially, such as individ-
ual job development or employment counseling services.’’;
(B) in the first sentence of subsection (b), by
striking out ‘‘by the State public employment service
agencies’’; and
(C) in subsection (c)—
(i) by amending clause (1) to read as fol-
lows:
‘‘(1) information, by State, regarding (A) the
numbers of eligible veterans, disabled veterans, vet-
erans with existing employment barriers, recently
separated veterans, and eligible persons who reg-
istered for assistance with the public employment
service system or with grantees and contractors
under this chapter who are not part of that system,
and (B) for each of those categories, results as
measured by the outcome measurements prescribed
under section 4104(b), as applicable;’’;
(ii) by striking out clause (2) and redesig-
nating clauses (3), (4), and (5) as clauses (2),
(3), and (4), respectively;
(iii) in clause (5), as so redesignated, by
striking out ‘‘4103A and 4104’’ and inserting
in lieu thereof ‘‘4104, 4104A, and 4104B’’; and
(iv) in clause (5), as so redesignated—
(I) by striking out ‘‘in meeting the re-
quirements of section 4102A(b) of this
title’’; and
(II) by striking out ‘‘(including’’ and
all that follows through ‘‘representatives)’’.
(10) Section 4108 of title 38 is amended—
(A) by striking out ‘‘(a)’’ at the beginning of
subsection (a); and
(B) by striking out subsection (b).
(11) Section 4109(a) of title 38 is amended by strik-
ing out ‘‘disabled veterans’ outreach program specialists,
local veterans employment representatives,’’ and inserting
in lieu thereof ‘‘Veterans’ Case Managers, Veterans’ Em-
ployment Facilitators,’’.
(12) Section 4110A(a)(1) of title 38 is amended—
(A) in clause (D), by inserting ‘‘in a campaign
or expedition for which a campaign or expedition for
which a campaign badge has been authorized’’ after
‘‘Vietnam era’’; and
(B) by redesignating clause (E) as clause (F);
and
(C) by inserting after clause (D) a new clause
(E) as follows:
‘‘(E) Veterans who served on active duty after
the Vietnam era who did not serve in a campaign or
expedition for which a campaign badge has been au-
thorized.’’.
(b) DISCREPANCIES IN REPORTING OF VETERANS
USING STATE EMPLOYMENT SERVICES.—The Secretary
of Labor shall, within 90 days after the date of the enact-
ment of this Act—
(1) resolve the discrepancies that exist in the
Bureau Labor Statistics biennial report under sec-
tion 4110A of title 38, United States Code, and the
report of the Veterans Employment and Training
Service known as the ETA–9002 Report, regarding
the numbers of veterans who use State employment
services; and
(2) submit to the appropriate Committees of
the Congress a report describing the causes of those
discrepancies and how they were resolved.
(c) CLERICAL AND CONFORMING AMENDMENTS.—
(1) The table of sections at the beginning of chapter 41
of title 38 is amended by striking out the items relating
to sections 4103A, 4104, and 4104A and inserting in lieu
thereof the following:
‘‘4104. Grants and contracts.
4104A. Veterans’ Case Managers.
4104B. Veterans’ Employment Facilitators.’’.
(2) Section 3117 of title 38 is amended by striking
out ‘‘disabled veterans outreach program specialists under
section 4103A’’ and inserting in lieu thereof ‘‘Veterans’
Case Managers under section 4104A’’.
(3) Section 3672(d) of title 38 is amended by striking
out ‘‘disabled veterans’ outreach program specialists under
section 4103A’’ and inserting in lieu thereof ‘‘Veterans’
Case Managers under section 4104A’’.
(4) Section 1721(b)(2)(B) of title 29 is amended by
striking out ‘‘4103A’’ and inserting in lieu thereof
‘‘4104A’’.
(d) EFFECTIVE DATE AND TRANSITION.—(1) Except
as provided in paragraph (2), the amendments made by
this section shall take effect on October 1, 2000.
(2) The Secretary of Labor may continue to excercise
the authorities in chapter 41 as in effect on September
30, 2000 (and the Secretary of Veterans Affairs may con-
tinue to exercise authorities in other provisions of title 38
amended by this section as in effect on that date), to the
extent that the Secretary of Labor (or the Secretary of
Veterans Affairs, as appropriate) determines necessary to
ensure the continuity of services and assistance to veter-
ans and eligible persons.
SEC. 202. VOCATIONAL REHABILITATION FOR SERVICE-DIS-
ABLED VETERANS.
(a) PERFORMANCE MEASUREMENTS.—The Secretary
of Veterans Affairs shall require that performance meas-
urements for the program of vocational rehabilitation
under chapter 31 of title 38, United States Code, focus
on outcome measures, including—
(1) the numbers of program participants who
enter employment;
(2) the numbers of participants with serious
employment handicaps who enter employment;
(3) the numbers of participants (with break-
downs between those who do and those who do not
have serious employment handicaps) who remain
employed in each of the three years following their
entering employment; and
(4) such other outcome measures as the Sec-
retary determines would contribute to achieving the
goal of enabling eligible disabled veterans to become
employable and to obtain and maintain suitable em-
ployment.
(b) PROVISION
OF CASE-MANAGEMENT
AND EM-
PLOYMENT SERVICES.—(1) Section 3115 of title 38 is
amended—
(A) in subsection (a), by inserting ‘‘except sub-
section (c)’’ after ‘‘provision of law’’;
(B) by redesignating subsection (c) as sub-
section (d); and
(C) by inserting after subsection (b) the follow-
ing new subsection:
‘‘(c) All case-management services and employment
services (including but not limited to placement services
and the other services authorized by section 3117) under
this chapter shall be provided exclusively by Department
of Veterans Affairs personnel or by a Veterans’ Case Man-
ager under section 4104A. The Secretary may not con-
tract with any other person or entity to provide the serv-
ices described in the preceding sentence.’’.
(2)(A) Except as provided in subparagraph (B), the
amendments made by this section shall take effect October
1, 2000.
(B) After that date, the Secretary of Veterans Affairs
may continue to provide the services described in sub-
section (c) of section 3115 of title 38, United States Code,
as added by paragraph (1), through contractual arrange-
ments only in areas in which a delay in the implementation
of the Veterans’ Case Manager program under chapter 42
of title 38 makes it advisable to do so.
SEC. 203. TRANSITION ASSISTANCE PROGRAM FUNDING.
Section 1144 of title 10 is amended by adding at the
end the following new subsection:
‘‘(e) FUNDING.—(1) There is authorized to be appro-
priated to the Department of Defense for each fiscal year
to carry out this section and sections 1142 (a) and (b)
and 1143a an amount equal to $390 (as increased pursu-
ant to paragraph (C)) multiplied by the number of mem-
bers that the Secretary of Defense, after consultation with
the Secretary of Transportation, estimates (pursuant to
paragraph (2)) will be discharged or released during that
fiscal year.
‘‘(2) The Secretary of Defense shall include in docu-
ments submitted by the Secretary in support of the Presi-
dent’s budget for each fiscal year, the Secretary’s estimate
of the number of members who will be discharged or re-
leased in that fiscal year. The Secretary may revise that
estimate as warranted by the facts.
‘‘(3) For the purposes of fiscal year 2000 and each
succeeding fiscal year, the amount specified in paragraph
(A) shall be increased by the percentage by which—
‘‘(A) the Consumer Price Index (all items,
United States city average) for the 12-month period
ending on the June 30 preceding the beginning of
the fiscal year for which the increase is made, ex-
ceeds
‘‘(B) that Consumer Price Index for the 12-
month period preceding the 12-month period de-
scribed in clause (i).
‘‘(4) Of the funds appropriated each fiscal year pur-
suant to the authorization provided in this subsection, the
Secretary of Defense shall allocate to the Department of
Transportation an amount proportionate to the number
of members of the Coast Guard being discharged or sepa-
rated that fiscal year.’’.
SEC. 204. TIMING OF PRESEPARATION COUNSELING.
(a) Section 1142(a)(1) of title 10 is amended—
(1) by amending the first sentence to read as
follows: ‘‘Within the time periods specified in para-
graph (3), the Secretary concerned shall (except as
provided in paragraph (4)) provide for individual
preseparation counseling of each member of the
armed forces whose discharge or release from active
duty is anticipated.’’; and
(2) by inserting at the end the following new
paragraphs:
‘‘(3)(A) Preseparation counseling shall commence as
soon as possible during the two-year period preceding an
anticipated retirement and as soon as possible during the
one-year period preceding other separations, but, except
as provided in subparagraph (B), in no event later than
90 days before the date of discharge or release.
‘‘(B) In the event that a retirement or other separa-
tion is unanticipated until there are 90 or fewer days re-
maining in the member’s service, preseparation counseling
shall begin as soon as possible within the remaining period
of service.
‘‘(4) Except in the case of a member who is being
retired or separated for disability, the Secretary concerned
shall give to each member who is being discharged or re-
leased before the completion of that member’s first 180
days of active duty the option of not receiving
preseparation counseling. A notation reflecting the fact
that a member has exercised that option shall be placed
in the service record of each member who has.’’.
SEC. 205. ELIMINATION OF INEQUITY IN TRANSITION BENE-
FITS FOR INVOLUNTARY SEPARATEES.
(a) LIMITATION
ON SPECIAL TRANSITION BENE-
FITS.—Section 1141 of title 10 is amended—
(1) by striking out ‘‘A’’ at the beginning and
inserting in lieu thereof ‘‘(a) BASIC DEFINITION.—
Except as provided in subsection (b), a’’; and
(2) by inserting at the end the following new
subsection:
‘‘(b) LIMITATION.—A member shall be considered to
be involuntarily separated for purposes of this subchapter
only if, under regulations prescribed by the Secretary of
Defense, the member is being discharged or released as
the result of a force-management reduction.’’.