stone or marker will be placed within the grounds of the 
cemetery in which the grave for which the headstone or 
marker is requested and as close as possible or practicable 
to that grave.’’. 
(e) DELIVERY
OF GOVERNMENT HEADSTONES
OR 
MARKERS.—Subsection (d)(2) of such section, as amended 
by subsection (c), is further amended by inserting before the 
period at the end the following: ‘‘or to a receiving agent 
of that cemetery’’. 
(f) SELECTION OF GOVERNMENT HEADSTONES AND 
MARKERS.—Subsection (d) of such section, as amended by 
subsections (a), (c), (d), and (e), is further amended by add-
ing at the end the following new paragraph (3): 
‘‘(3) The headstone or marker furnished under this 
subsection shall be the headstone or marker selected by the 
individual making the request for the headstone or marker 
from among all the headstones and markers made available 
by the Government and certified as acceptable for place-
ment.’’. 
(g) RETROACTIVE EFFECTIVE DATE.—The amend-
ments made by this section shall apply as if enacted in sec-
tion 502 of the Veterans Education and Benefits Expansion 
Act of 2001 (Public Law 107–103; 38 U.S.C. 2306 note). 
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SEC. 
203. 
PROVISION 
OF 
GOVERNMENT 
MEMORIAL 
HEADSTONES OR MARKERS AND MEMORIAL 
INSCRIPTIONS FOR DECEASED DEPENDENT 
CHILDREN OF VETERANS WHOSE REMAINS 
ARE UNAVAILABLE FOR BURIAL. 
(a) PROVISION OF MEMORIAL HEADSTONES OR MARK-
ERS.—Subsection (b) of section 2306 of title 38, United 
States Code, is amended— 
(1) by adding at the end of paragraph (2) the 
following new subparagraph: 
‘‘(C) An eligible dependent child of a veteran.’’; 
and 
(2) by adding at the end of paragraph (4) the 
following new subparagraph: 
‘‘(C) For purposes of this section, the term ‘eligi-
ble dependent child’ means a child— 
‘‘(i) who is under 21 years of age, or under 
23 years of age if pursuing a course of instruc-
tion at an approved educational institution; or 
‘‘(ii) who is unmarried and became perma-
nently physically or mentally disabled and in-
capable of self-support before reaching 21 years 
of age, or before reaching 23 years of age if pur-
suing a course of instruction at an approved 
educational institution.’’. 
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(b) ADDITION OF MEMORIAL INSCRIPTION TO HEAD-
STONE OR MARKER OF VETERAN.—Subsection (f) of such 
section is amended by inserting ‘‘or eligible dependent 
child’’ after ‘‘surviving spouse’’ both places it appears. 
(c) EFFECTIVE DATE.—The amendments made by sub-
sections (a) and (b) shall apply with respect to individuals 
dying after the date of the enactment of this Act. 
TITLE III—VETERANS’ 
EMPLOYMENT AND TRAINING 
SEC. 301. PROFESSIONAL QUALIFICATIONS FOR DISABLED 
VETERANS’ OUTREACH PROGRAM SPECIAL-
ISTS AND LOCAL VETERANS’ EMPLOYMENT 
REPRESENTATIVES. 
(a) ESTABLISHMENT
OF
GUIDELINES
BY
SEC-
RETARY.—Section 4107 of title 38, United States Code, is 
amended by adding at the end the following new subsection: 
‘‘(d) The Secretary shall maintain guidelines for use 
by States in establishing the professional qualifications re-
quired under subclause (IV) of section 4102A(c)(2)(A)(i) of 
this title for determining the eligibility for employment, 
and eligibility for the continued employment, of State em-
ployees who are designated as disabled veterans’ outreach 
program specialists and local veterans’ employment rep-
resentatives under this chapter.’’. 
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(b) SUBMISSION OF ANNUAL PROFESSIONAL QUALI-
FICATIONS AS A CONDITION OF STATE RECEIPT OF FUNDS 
UNDER
VETS 
PROGRAM.—Clause 
(i) 
of 
section 
4102A(c)(2)(A) of such title is amended— 
(1) in subclause (II), by striking ‘‘and’’ at the 
end; 
(2) in subclause (III), by striking the period at 
the end and inserting a semicolon; and 
(3) by adding at the end the following new sub-
clauses: 
‘‘(IV) the professional qualifications used by 
the State for determining the eligibility for em-
ployment, and eligibility for continued employ-
ment, of State employees who are designated as 
disabled veterans’ outreach program specialists 
and local veterans’ employment representatives 
under this chapter; and 
‘‘(V) the training required or provided by 
the State for State employees who are designated 
as disabled veterans’ outreach program special-
ists and local veterans’ employment representa-
tives under this chapter.’’. 
(c) DEADLINE FOR ESTABLISHMENT OF QUALIFICA-
TIONS.—The Secretary of Labor shall establish the guide-
lines for professional qualifications required by sections 
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4107(d) of title 38, United States Code, as added by sub-
section (a), not later than the date that is 180 days after 
the date of the enactment of this Act. 
(d) TECHNICAL AMENDMENTS.— 
(1) AMENDMENTS.—Section 4102A of such title, 
as amended by subsection (b), is further amended— 
(A) in subsection (c)— 
(i) by striking clause (ii) of paragraph 
(2)(B) and redesignating clause (iii) as 
clause (ii); and 
(ii) in paragraph (6)— 
(I) by inserting ‘‘(29 U.S.C. 2801 
et seq.)’’ after ‘‘the Workforce Invest-
ment Act of 1998’’; and 
(II) by inserting ‘‘(29 U.S.C. 49 
et seq.)’’ after ‘‘the Wagner-Peyser 
Act’’; and 
(B) in subsection (f)— 
(i) in paragraph (1), by striking ‘‘es-
tablish and’’; and 
(ii) by striking the heading and insert-
ing the following: ‘‘PERFORMANCE STAND-
ARDS AND OUTCOMES MEASURES.—’’. 
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(2) EFFECTIVE DATE.—The amendment made by 
clause (i) of paragraph (1)(A) shall take effect on Oc-
tober 1, 2006. 
SEC. 302. RULES FOR PART-TIME EMPLOYMENT FOR DIS-
ABLED VETERANS’ OUTREACH PROGRAM SPE-
CIALISTS AND LOCAL VETERANS’ EMPLOY-
MENT REPRESENTATIVES. 
(a) DISABLED VETERANS’ OUTREACH PROGRAM SPE-
CIALISTS.—Section 4103A of title 38, United States Code, 
is amended by adding at the end the following new sub-
section: 
‘‘(c) PART-TIME EMPLOYEES.—A part-time disabled 
veterans’ outreach program specialist shall perform the 
functions of a disabled veterans’ outreach program spe-
cialist under this section on a half-time basis.’’. 
(b) LOCAL VETERANS’ EMPLOYMENT REPRESENTA-
TIVES.—Section 4104 of such title is amended by adding 
at the end the following new subsection: 
‘‘(e) PART-TIME EMPLOYEES.—A part-time local vet-
erans’ employment representative shall perform the func-
tions of a local veterans’ employment representative under 
this section on a half-time basis.’’. 
(c) EFFECTIVE DATE.—Sections 4103A(c) and 4104(e) 
of title 38, United States Code, as added by subsections (a) 
and (b), shall apply with respect to pay periods beginning 
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after the date that is 180 days after the date of the enact-
ment of this Act. 
SEC. 303. STATE LICENSING AND CERTIFICATION PRO-
GRAMS FOR VETERANS. 
(a) REQUIREMENT AS A CONDITION OF VETS FUND-
ING.—Section 4102A(c) of title 38, United States Code, as 
amended by section 301, is further amended by adding at 
the end the following new paragraph: 
‘‘(8) As a condition of a grant or contract under which 
funds are made available to a State in order to carry out 
section 4103A or 4104 of this title, the Secretary shall re-
quire the State to provide a licensing and certification pro-
gram under which a veteran may receive credit toward a 
license or certification based on training or experience the 
veteran acquired while serving in the Armed Forces.’’. 
(b) EFFECTIVE DATE.—Section 4102A(c)(8) of title 
38, United States Code, as added by subsection (a), shall 
apply to a grant or contract under which funds are made 
available to a State in order to carry out section 4103A 
or 4104 of such title beginning with the second program 
year beginning after the date of the enactment of this Act. 
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SEC. 304. TRAINING OF NEW DISABLED VETERANS’ OUT-
REACH PROGRAM SPECIALISTS AND LOCAL 
VETERANS’ EMPLOYMENT REPRESENTATIVES 
BY NVTI REQUIRED. 
(a) TRAINING REQUIRED.—Section 4102A(c) of title 
38, United States Code, is further amended by adding after 
paragraph (8), as added by section 303, the following new 
paragraph: 
‘‘(9)(A) As a condition of a grant or contract under 
which funds are made available to a State in order to carry 
out section 4103A or 4104 of this title, the Secretary shall 
require the State to require each employee hired by the State 
who is designated as disabled veterans’ outreach program 
specialist or a local veterans’ employment representative 
under this chapter to satisfactorily complete training pro-
vided by the National Veterans’ Employment and Training 
Services Institute during the three-year period that begins 
on the date on which the employee is so designated. 
‘‘(B) For any employee described in subparagraph (A) 
who does not complete such training during such period, 
the Secretary may reduce by an appropriate amount the 
amount made available to the State employing that em-
ployee.’’. 
(b) SUBMISSION OF EMPLOYEE TRAINING INFORMA-
TION REQUIRED.—Section 4102A(c)(2)(A) of such title is 
amended— 
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(1) by redesignating clause (iii) as clause (iv); 
and 
(2) by inserting after clause (ii) the following 
new clause (iii): 
‘‘(iii) For each employee of the State who is des-
ignated as disabled veterans’ outreach program spe-
cialist or a local veterans’ employment representative 
under this chapter— 
‘‘(I) the date on which the employee is so 
designated; and 
‘‘(II) whether the employee has satisfac-
torily completed training provided by the Na-
tional Veterans’ Employment and Training 
Services Institute.’’. 
(c) APPLICABILITY.— 
(1) APPLICABILITY TO NEW EMPLOYEES.—Para-
graph (9) of section 4102A(c) of such title, as added 
by subsection (a), and clause (iii) of section 
4102A(c)(2)(A) of such title, as added by subsection 
(b), shall apply with respect to a State employee des-
ignated as a disabled veterans’ outreach program spe-
cialist or a local veterans’ employment representative 
under chapter 41 of such title who is so designated 
after the date of the enactment of this Act. 
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(2) APPLICABILITY
TO
CERTAIN
EMPLOYEES 
HIRED BEFORE DATE OF ENACTMENT.—The Secretary 
of Labor shall apply such paragraph to a State em-
ployee designated as a disabled veterans’ outreach 
program specialist or a local veterans’ employment 
representative under chapter 41 of such title who was 
so designated during the five-year period before the 
date of the enactment of this Act by substituting 
‘‘during the period beginning on the date on which 
the employee is so designated and ending on the date 
that is five years after the date of the enactment of 
the Veterans Small Business and Memorial Affairs 
Act of 2006’’ for ‘‘during the three-year period that 
begins on the date on which the employee is so des-
ignated’’. 
SEC. 305. MATTERS FOR INCLUSION IN ANNUAL REPORT ON 
VETS PROGRAM. 
Section 4107(c) of title 38, United States Code, is 
amended— 
(1) by redesignating paragraphs (3) through (6) 
as paragraphs (10) through (13), respectively; and 
(2) by inserting after paragraph (2) the fol-
lowing new paragraphs: 
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‘‘(3) the number of veterans, disabled veterans, 
and special disabled veterans who requested training 
from the public employment service system; 
‘‘(4) the total number of eligible veterans partici-
pating in each program for the provision of employ-
ment and training services designed to meet the needs 
of eligible veterans and eligible persons and the num-
ber of such veterans as a percentage of the total num-
ber of participants in each such program; 
‘‘(5) for each State, the percentage of persons 
seeking employment in the State who are veterans; 
‘‘(6) for each State, the number of veterans re-
ferred to a small business development center in that 
State and the number of veterans referred to the Na-
tional Veterans Business Development Corporation es-
tablished under section 33 of the Small Business Act 
(15 U.S.C. 657c); 
‘‘(7) the total number of such veterans and dis-
abled veterans who remain employed for at least 90 
days in such jobs; 
‘‘(8) the number of such veterans and disabled 
veterans who remain employed for at least 180 days 
in such jobs; 
‘‘(9) the average starting wage or salary paid to 
such veterans and disabled veterans and, if applica-
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ble, the average wage or salary paid to such veterans 
and disabled veterans as of the 180th day of employ-
ment;’’. 
SEC. 306. DEMONSTRATION PROJECT ON CONTRACTING 
FOR PLACEMENT OF CERTAIN DISABLED VET-
ERANS. 
(a) DEMONSTRATION PROJECT.—Section 4102A of 
title 38, United States Code, as amended by sections 301, 
303, and 304, is further amended by adding at the end the 
following new subsection: 
‘‘(h) DEMONSTRATION PROJECT ON CONTRACTING FOR 
PLACEMENT
OF
VETERANS
IN
HIGH-UNEMPLOYMENT 
AREAS.—(1) From unobligated funds made available for a 
fiscal year to carry out sections 4103A and 4104 of this 
title, the Secretary of Labor, acting through the Assistant 
Secretary of Labor for Veterans’ Employment and Train-
ing, may enter into a contract with a nongovernmental en-
tity to carry out job placement services for veterans during 
that fiscal year in a locality where the unemployment rate 
for veterans exceeds the national average unemployment 
rate. 
‘‘(2) In entering into a contract under paragraph (1), 
the Secretary of Labor may use procedures other than com-
petitive procedures. 
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‘‘(3) In entering into a contract under paragraph (1), 
the Secretary of Labor shall give priority to a small busi-
ness concern owned and controlled by veterans that is listed 
in any small business database maintained by the Sec-
retary of Veterans Affairs. 
‘‘(4) The total amount obligated under contracts en-
tered into under paragraph (1) for any fiscal year may not 
exceed $3,000,000. 
‘‘(5) The authority to enter into a contract under this 
subsection shall terminate on the date that is five years after 
the date of the enactment of the Veterans Small Business 
and Memorial Affairs Act of 2006.’’. 
(b) GAO REPORT.—Not later than four years after the 
date of the enactment of this Act, the Comptroller General 
shall submit to the Committees on Veterans’ Affairs of the 
Senate and House of Representatives a report on the dem-
onstration project under subsection (h) of section 4102A of 
title 38, United States Code, as added by subsection (a). 
SEC. 307. PERFORMANCE INCENTIVE AWARDS FOR EMPLOY-
MENT SERVICE OFFICES. 
(a) PROVISION OF INCENTIVES TO EMPLOYMENT SERV-
ICE OFFICES.—Section 4112 of title 38, United States Code, 
is amended— 
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(1) in subsection (a)(1)(B), by inserting ‘‘and 
employment service offices’’ after ‘‘recognize eligible 
employees’’; 
(2) in subsection (c)— 
(A) in paragraph (1), by striking ‘‘and’’ at 
the end; 
(B) in paragraph (2)— 
(i) by striking ‘‘is’’ and inserting ‘‘in 
the case of such an award made to an eligi-
ble employee, shall be’’; and 
(ii) by striking the period at the end 
and inserting the following: ‘‘; and’’; and 
(C) by adding at the end the following new 
paragraph: 
‘‘(3) in the case of such an award made to an 
employment service office, may be used by that em-
ployment service office for any purpose.’’. 
(b) CONFORMING AMENDMENT.—The heading for sub-
section (c) of such section is amended to read as follows: 
‘‘ADMINISTRATION AND USE OF AWARDS.—’’. 
SEC. 308. DEPARTMENT OF LABOR IMPLEMENTATION OF 
PRIORITY OF SERVICE FOR VETERANS RE-
QUIREMENT. 
Not later than one year after the date of the enactment 
of this Act, the Secretary of Labor shall prescribe regula-
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tions to implement section 4215 of title 38, United States 
Code. 
SEC. 309. DEMONSTRATION PROJECT ON CREDENTIALING 
AND LICENSURE OF VETERANS. 
(a) ESTABLISHMENT OF DEMONSTRATION PROJECT.— 
Chapter 41 of title 38, United States Code, is amended by 
adding at the end the following new section: 
‘‘§ 4114. Demonstration project on credentialing and 
licensure of veterans 
‘‘(a) ESTABLISHMENT AND PURPOSE OF DEMONSTRA-
TION PROJECT.—The Assistant Secretary for Veterans’ Em-
ployment and Training shall carry out a demonstration 
project on credentialing in accordance with this section for 
the purpose of facilitating the seamless transition of mem-
bers of the Armed Forces from service on active duty to ci-
vilian employment. 
‘‘(b) CREDENTIALING
AND
LICENSURE
OF
VET-
ERANS.—(1) The Assistant Secretary shall select not less 
than ten military occupational specialties for purposes of 
the demonstration project. Each such speciality selected by 
the Assistant Secretary shall require a skill or set of skills 
that is required for civilian employment in an industry 
with high growth or high worker demand. 
‘‘(2) The Assistant Secretary shall consult with appro-
priate Federal, State, and industry officials to identify re-
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quirements for credentials, certifications, and licenses that 
require a skill or set of skills required by a military occupa-
tional specialty identified under paragraph (1). 
‘‘(3) The Assistant Secretary shall analyze the require-
ments identified under paragraph (2) to determine which 
requirements may be satisfied by the skills, training, or ex-
perience acquired by members of the Armed Forces with the 
military occupational specialties selected under paragraph 
(1). 
‘‘(c) ELIMINATION OF BARRIERS TO CREDENTIALING 
AND LICENSURE.—The Assistant Secretary shall cooperate 
with appropriate Federal, State, and industry officials to 
reduce or eliminate any barriers to providing a credential, 
certification, or license to a veteran who acquired any skill, 
training, or experience while serving as a member of the 
Armed Forces with a military occupational specialty se-
lected under subsection (b)(1) that satisfies the Federal and 
State requirements for the credential, certification, or li-
cense. 
‘‘(d) TASK FORCE.—The Assistant Secretary may es-
tablish a task force of individuals with appropriate exper-
tise to provide assistance to the Assistant Secretary in car-
rying out this section. 
‘‘(e) CONSULTATION.—In carrying out this section, the 
Assistant Secretary shall consult with the Secretary of De-
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fense, the Secretary of Veterans Affairs, appropriate Federal 
and State officials, private-sector employers, labor organi-
zations, and industry trade associations. 
‘‘(f) CONTRACT AUTHORITY.—For purposes of car-
rying out any part of the demonstration project under this 
section, the Assistant Secretary may enter into a contract 
with a public or private entity with appropriate expertise. 
‘‘(g) PERIOD OF PROJECT.—The Assistant Secretary 
shall carry out the demonstration project under this section 
during the period beginning on the date that is 60 days 
after the date of the enactment of this section and ending 
on September 30, 2009. 
‘‘(h) AUTHORIZATION
OF APPROPRIATIONS.—There 
are authorized to be appropriated to the Assistant Secretary 
to carry out this section $1,000,000 for each of fiscal years 
2007 through 2009.’’. 
(b) MEMBERSHIP OF ADVISORY COMMITTEE ON VET-
ERANS EMPLOYMENT, TRAINING, AND EMPLOYER OUT-
REACH.—Section 4110(c)(1)(A) of such title is amended— 
(1) by striking ‘‘Six’’ and inserting ‘‘Seven’’; 
and 
(2) by adding at the end the following new 
clause: 
‘‘(vii) The National Governors Associa-
tion.’’. 
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(c) CLERICAL AMENDMENT.—The table of sections at 
the beginning of chapter 41 of such title is amended by add-
ing at the end the following new item: 
‘‘4114. Demonstration project on credentialing and licensure of veterans.’’. 
TITLE IV—EDUCATION 
SEC. 401. EXCEPTION FOR INSTITUTIONS OFFERING GOV-
ERNMENT-SPONSORED 
NONACCREDITED 
COURSES TO REQUIREMENT OF REFUNDING 
UNUSED TUITION. 
Section 3676(c)(13) of title 38, United States Code, is 
amended by striking ‘‘prior to completion’’ and all that fol-
lows and inserting the following: ‘‘before completion and— 
‘‘(A) in the case of an institution other than 
(i) a Federal, State, or local Government institu-
tion or (ii) an institution described in subpara-
graph (B), such policy provides that the amount 
charged to the eligible person for tuition, fees, 
and other charges for a portion of the course 
shall not exceed the approximate pro rata por-
tion of the total charges for tuition, fees, and 
other charges that the length of the completed 
portion of the course bears to its total length; 
and 
‘‘(B) in the case of an institution that is a 
nonaccredited public educational institution, the 
institution has and maintains a refund policy 
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regarding the unused portion of tuition, fees, and 
other charges that is substantially the same as 
the refund policy followed by accredited public 
educational institutions located within the same 
State as such institution.’’. 
SEC. 402. EXTENSION OF WORK-STUDY ALLOWANCE. 
Section 3485(a)(4) of title 38, United States Code, is 
amended by striking ‘‘December 27, 2006’’ each place it ap-
pears and inserting ‘‘June 30, 2007’’. 
SEC. 403. REPORT ON IMPROVEMENT IN ADMINISTRATION 
OF EDUCATIONAL ASSISTANCE BENEFITS. 
Not later than 180 days after the date of the enactment 
of this Act, the Secretary of Veterans Affairs shall submit 
to Congress a report on the administration of education 
benefits under chapters 30, 31, 32, 34, 35, and 36 of title 
38, United States Code, and chapters 1606 and 1607 of title 
10, United States Code, that proposes methods to streamline 
the processes and procedures of administering such benefits. 
SEC. 404. RESTORATION OF LOST ENTITLEMENT FOR INDI-
VIDUALS 
WHO 
HAD 
TO 
DISCONTINUE 
A 
COURSE OF EDUCATION BECAUSE OF BEING 
ORDERED TO FULL-TIME NATIONAL GUARD 
DUTY. 
(a) 
RESTORATION
OF
ENTITLEMENT.—Section 
3511(a)(2)(B)(i) of title 38, United States Code, is amended 
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by inserting after ‘‘title 10’’ the following: ‘‘or of being in-
voluntarily ordered to full-time National Guard duty under 
section 502(f) of title 32’’. 
(b) EFFECTIVE DATE.—The amendment made by sub-
section (a) shall apply with respect to a payment of edu-
cational assistance allowance made after September 11, 
2001. 
SEC. 405. TECHNICAL AMENDMENTS. 
Section 3485 of title 38, United States Code, is amend-
ed— 
(1) in subsection (a)(4)(E), by inserting ‘‘or 
1607’’ after ‘‘chapter 1606’’; 
(2) in subsection (b), by striking ‘‘chapter 106’’ 
and inserting ‘‘chapter 1606 or 1607’’; and 
(3) in subsection (e)(1)— 
(A) by striking ‘‘services of the kind de-
scribed in clauses (A) through (E) of subsection 
(a)(1) of this section’’ and inserting ‘‘a quali-
fying work-study activity described in subsection 
(a)(4)’’; and 
(B) by striking ‘‘chapter 106’’ and inserting 
‘‘chapter 1606 or 1607’’. 
Amend the title so as to read: ‘‘A bill to amend title 
38, United States Code, to make improvements to small 
business, memorial affairs, education, and employment 
programs for veterans, and for other purposes.’’. 
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Union Calendar No. 343 
109TH CONGRESS 
2D SESSION 
H. R. 3082 
[Report No. 109–592] 
A BILL 
To amend title 38, United States Code, to require 
that 9 percent of procurement contracts entered 
into by the Department of Veterans Affairs be 
awarded to small business concerns owned by 
veterans, and for other purposes. 
JULY 24, 2006 
Reported with amendments, committed to the Committee 
of the Whole House on the State of the Union, and or-
dered to be printed 
VerDate Aug 31 2005 
03:21 Jul 25, 2006
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