IB 
Union Calendar No. 343 
109TH CONGRESS 
2D SESSION 
H. R. 3082 
[Report No. 109–592] 
To amend title 38, United States Code, to require that 9 percent of procure-
ment contracts entered into by the Department of Veterans Affairs 
be awarded to small business concerns owned by veterans, and for other 
purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JUNE 28, 2005 
Mr. BOOZMAN (for himself, Ms. HERSETH, Mr. BILIRAKIS, Mr. BURTON of 
Indiana, and Mr. EVERETT) introduced the following bill; which was re-
ferred to the Committee on Veterans’ Affairs 
JULY 24, 2006 
Additional sponsors: Ms. GINNY BROWN-WAITE of Florida, Mr. FILNER, Mr. 
CARTER, Mr. MARSHALL, Mr. CAMPBELL of California, Mr. PLATTS, 
Mrs. DAVIS of California, Mr. EDWARDS, Mr. MICHAUD, Ms. CORRINE 
BROWN of Florida, Mr. UDALL of New Mexico, Mr. GUTIERREZ, Mr. 
EVANS, Mr. STRICKLAND, Mr. REYES, Ms. BERKLEY, Mr. SALAZAR, Mr. 
CASE, Mr. BOSWELL, Mr. GONZALEZ, Mr. FALEOMAVAEGA, Mrs. JO ANN 
DAVIS of Virginia, and Mr. LOBIONDO 
JULY 24, 2006 
Reported with amendments, committed to the Committee of the Whole House 
on the State of the Union, and ordered to be printed 
[Strike out all after the enacting clause and insert the part printed in italic] 
[For text of introduced bill, see copy of bill as introduced on June 28, 2005] 
A BILL 
To amend title 38, United States Code, to require that 
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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 pur-
poses. 
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 ‘‘Vet-
erans Small Business and Memorial Affairs Act of 2006’’. 
(b) TABLE OF CONTENTS.—The table of contents for 
this Act is as follows: 
Sec. 1. Short title; table of contents. 
TITLE I—SMALL BUSINESS 
Sec. 101. Department of Veterans Affairs goals for participation by small busi-
nesses owned and controlled by veterans in procurement con-
tracts. 
Sec. 102. Department of Veterans Affairs contracting priority for veteran-owned 
small businesses. 
Sec. 103. Effective date. 
TITLE II—MEMORIAL AFFAIRS 
Sec. 201. Eligibility of Indian tribal organizations for grants for the establish-
ment of veterans cemeteries on trust lands. 
Sec. 202. Repeal of expiration and expanded application of Department of Vet-
erans Affairs benefit for Government markers or headstones for 
marked graves of veterans buried in private cemeteries. 
Sec. 203. Provision of Government memorial headstones or markers and memo-
rial inscriptions for deceased dependent children of veterans 
whose remains are unavailable for burial. 
TITLE III—VETERANS’ EMPLOYMENT AND TRAINING 
Sec. 301. Professional qualifications for disabled veterans’ outreach program spe-
cialists and local veterans’ employment representatives. 
Sec. 302. Rules for part-time employment for disabled veterans’ outreach program 
specialists and local veterans’ employment representatives. 
Sec. 303. State licensing and certification programs for veterans. 
Sec. 304. Training of new disabled veterans’ outreach program specialists and 
local veterans’ employment representatives by NVTI required. 
Sec. 305. Matters for inclusion in annual report on VETS program. 
Sec. 306. Demonstration project on contracting for placement of certain disabled 
veterans. 
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Sec. 307. Performance incentive awards for employment service offices. 
Sec. 308. Department of Labor implementation of priority of service for veterans 
requirement. 
Sec. 309. Demonstration project on credentialing and licensure of veterans. 
TITLE IV—EDUCATION 
Sec. 401. Exception for institutions offering Government-sponsored nonaccredited 
courses to requirement of refunding unused tuition. 
Sec. 402. Extension of work-study allowance. 
Sec. 403. Report on improvement in administration of educational assistance 
benefits. 
Sec. 404. Restoration of lost entitlement for individuals who had to discontinue 
a course of education because of being ordered to full-time Na-
tional Guard duty. 
Sec. 405. Technical amendments. 
TITLE I—SMALL BUSINESS 
SEC. 101. DEPARTMENT OF VETERANS AFFAIRS GOALS FOR 
PARTICIPATION 
BY 
SMALL 
BUSINESSES 
OWNED AND CONTROLLED BY VETERANS IN 
PROCUREMENT CONTRACTS. 
(a) IN GENERAL.—Subchapter II of chapter 81 of title 
38, United States Code, is amended by adding at the end 
the following new section: 
‘‘§ 8127. Small business concerns owned and con-
trolled 
by 
veterans; 
Department 
con-
tracting goals and preferences 
‘‘(a) CONTRACTING GOALS.—(1) In order to increase 
contracting opportunities for small business concerns owned 
and controlled by veterans and small business concerns 
owned and controlled by veterans with service-connected 
disabilities, the Secretary shall— 
‘‘(A) establish a goal for each fiscal year for par-
ticipation in Department contracts (including sub-
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contracts) by small business concerns owned and con-
trolled by veterans who are not veterans with service- 
connected disabilities in accordance with paragraph 
(2); and 
‘‘(B) establish a goal for each fiscal year for par-
ticipation in Department contracts (including sub-
contracts) by small business concerns owned and con-
trolled by veterans with service-connected disabilities 
in accordance with paragraph (3). 
‘‘(2) The goal for a fiscal year for participation under 
paragraph (1)(A) shall be determined by the Secretary. 
‘‘(3) The goal for a fiscal year for participation under 
paragraph (1)(B) shall be not less than the Government- 
wide goal for that fiscal year for participation by small 
business concerns owned and controlled by veterans with 
service-connected disabilities under section 15(g)(1) of the 
Small Business Act (15 U.S.C. 644(g)(1)). 
‘‘(4) The annual performance review of the senior offi-
cial of each Administration of the Department and each 
Assistant Secretary of the Department with procurement 
authority shall include an assessment of whether or not that 
official or Assistant Secretary met the contracting goals es-
tablished pursuant to this subsection during the year for 
which the performance review is conducted with respect to 
contracts awarded during that year for which that official 
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or Assistant Secretary had responsibility. If the official or 
Assistant Secretary is found not to have met such con-
tracting goals, the official or Assistant Secretary shall not 
receive an award known as a performance award or an 
award known as a presidential rank award for that year. 
‘‘(5) In the case of a subcontract of a Department con-
tract that is counted for purposes of meeting a goal estab-
lished pursuant to this section, the Secretary shall conduct 
a review of the contract and subcontract to verify that the 
subcontract was actually awarded to a business concern 
that may be counted for purposes of meeting that goal. 
‘‘(6) The Secretary shall maintain a list based on the 
reviews conducted under paragraph (5) that contains the 
name of the contractor associated with each contract re-
viewed under that paragraph and whether each subcontract 
awarded by the contractor that is counted for purposes of 
meeting a goal established pursuant to this section was ac-
tually awarded to and performed by a business concern that 
may be counted for purposes of meeting that goal. The Sec-
retary shall make such list publicly available. 
‘‘(b) USE
OF NONCOMPETITIVE PROCEDURES
FOR 
CERTAIN SMALL CONTRACTS.—For purposes of meeting the 
goals under subsection (a), and in accordance with this sec-
tion, in entering into a contract with a small business con-
cern owned and controlled by veterans for an amount less 
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than the simplified acquisition threshold (as defined in sec-
tion 4 of the Office of Federal Procurement Policy Act (41 
U.S.C. 403)), a contracting officer of the Department may 
use procedures other than competitive procedures. 
‘‘(c) SOLE
SOURCE
CONTRACTS
FOR
CONTRACTS 
ABOVE SIMPLIFIED ACQUISITION THRESHOLD.—For pur-
poses of meeting the goals under subsection (a), and in ac-
cordance with this section, a contracting officer of the De-
partment may award a contract to a small business concern 
owned and controlled by veterans using procedures other 
than competitive procedures if— 
‘‘(1) such concern is determined to be a respon-
sible source with respect to performance of such con-
tract opportunity; 
‘‘(2) the anticipated award price of the contract 
(including options) will exceed the simplified acquisi-
tion threshold (as defined in section 4 of the Office of 
Federal Procurement Policy Act (41 U.S.C. 403)) but 
will not exceed $5,000,000; and 
‘‘(3) in the estimation of the contracting officer, 
the contract award can be made at a fair and reason-
able price that offers best value to the United States. 
‘‘(d) USE OF RESTRICTED COMPETITION.—Except as 
provided in subsections (b) and (c), for purposes of meeting 
the goals under subsection (a), and in accordance with this 
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section, a contracting officer of the Department shall award 
contracts on the basis of competition restricted to small 
business concerns owned and controlled by veterans if the 
contracting officer has a reasonable expectation that two or 
more small business concerns owned and controlled by vet-
erans will submit offers and that the award can be made 
at a fair and reasonable price that offers best value to the 
United States. 
‘‘(e) ELIGIBILITY OF SMALL BUSINESS CONCERNS.— 
A small business concern may be awarded a contract under 
this section only if the small business concern and the vet-
eran owner of the small business concern are listed in the 
database of veteran-owned businesses maintained by the 
Secretary under subsection (f). 
‘‘(f) DATABASE OF VETERAN-OWNED BUSINESSES.— 
(1) Subject to paragraphs (2) through (6), the Secretary 
shall maintain a database of small business concerns owned 
and controlled by veterans and the veteran owners of such 
business concerns. 
‘‘(2) To be eligible for inclusion in the database, such 
a veteran shall submit to the Secretary such information 
as the Secretary may require with respect to the small busi-
ness concern or the veteran. 
‘‘(3) Information maintained in the database shall be 
submitted on a voluntary basis by such veterans. 
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‘‘(4) In maintaining the database, the Secretary shall 
carry out at least the following two verification functions: 
‘‘(A) Verification that each small business con-
cern listed in the database is owned and controlled by 
veterans. 
‘‘(B) In the case of a veteran who indicates a 
service-connected disability, verification of the service- 
disabled status of such veteran. 
‘‘(5) The Secretary shall make the database available 
to all Federal departments and agencies and notify each 
such department and agency of the availability of the data-
base. 
‘‘(6) If the Secretary determines that the public dis-
semination of certain types of information maintained in 
the database is inappropriate, the Secretary shall take such 
steps as are necessary to maintain such types of informa-
tion in a secure and confidential manner. 
‘‘(g) ENFORCEMENT PENALTIES FOR MISREPRESENTA-
TION.—Any small business concern that is determined by 
the Secretary to have misrepresented the status of that con-
cern as a small business concern owned and controlled by 
veterans or as a small business concern owned and con-
trolled by service-disabled veterans for purposes of this sub-
section shall be debarred from contracting with the Depart-
ment for a period of five years. 
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‘‘(h) TREATMENT OF BUSINESSES AFTER DEATH OF 
VETERAN-OWNER.—(1) If the death of a veteran causes a 
small business concern to be less than 51 percent owned by 
one or more veterans, the surviving spouse of such veteran 
who acquires ownership rights in such small business con-
cern shall, for the period described in paragraph (2), be 
treated as if the surviving spouse were that veteran for the 
purpose of maintaining the status of the small business con-
cern as a small business concern owned and controlled by 
veterans. 
‘‘(2) The period referred to in paragraph (1) is the 
period beginning on the date on which the veteran dies and 
ending on the earliest of the following dates: 
‘‘(A) The date on which the surviving spouse re-
marries. 
‘‘(B) The date on which the surviving spouse re-
linquishes an ownership interest in the small business 
concern. 
‘‘(C) The date that is ten years after the date of 
the veteran’s death. 
‘‘(3) The death of a veteran-owner of a small business 
concern or a surviving spouse of such a veteran-owner who 
acquires ownership rights in such concern shall not be cause 
for termination of a contract awarded under this section 
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that is in effect at the time of death of such owner or sur-
viving spouse. 
‘‘(i) CHANGE IN OWNERSHIP OR CONTROL.—(1) Ex-
cept as provided in subsection (h), if a small business con-
cern that is awarded a contract under this section undergoes 
a change in management or control during the period for 
which the contract is in effect such that it is no longer a 
small business concern owned and controlled by veterans, 
the Secretary shall end the contract on the date on which 
the performance of the term of the contract is complete. 
‘‘(2) Such a contract that contains an option or op-
tions to extend the contract may be extended for a total of 
not more than 1 year pursuant to any such option. 
‘‘(j) PRIORITY FOR CONTRACTING PREFERENCES.— 
Preferences for awarding contracts to small business con-
cerns shall be applied in the following order of priority: 
‘‘(1) Contracts awarded pursuant to subsection 
(b), (c), or (d) to small business concerns owned and 
controlled by veterans with service-connected disabil-
ities. 
‘‘(2) Contracts awarded pursuant to subsection 
(b), (c), or (d) to small business concerns owned and 
controlled by veterans that are not covered by sub-
paragraph (A). 
‘‘(3) Contracts awarded pursuant to— 
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‘‘(A) section 8(a) of the Small Business Act 
(15 U.S.C. 637(a)); or 
‘‘(B) section 31 of such Act (15 U.S.C. 
657a). 
‘‘(4) Contracts awarded pursuant to any other small 
business contracting preference. 
‘‘(k) QUARTERLY REPORTS.—Not later than 60 days 
after the last day of a fiscal quarter, the Secretary shall 
submit to Congress a report on small business contracting 
during that fiscal quarter, which shall include the following: 
‘‘(1) The percentage of the total amount of all 
contracts awarded by the Department during that fis-
cal quarter that were awarded to small business con-
cerns owned and controlled by veterans. 
‘‘(2) The percentage of the total amount of all 
such contracts awarded to small business concerns 
owned and controlled by veterans with service-con-
nected disabilities. 
‘‘(3) The percentage of the total amount of all 
contracts awarded by each Administration of the De-
partment during that fiscal quarter that were award-
ed to small business concerns owned and controlled by 
veterans. 
‘‘(4) The percentage of the total amount of all 
contracts awarded by each such Administration dur-
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ing that fiscal quarter that were awarded to small 
business concerns owned and controlled by veterans. 
‘‘(l) DEFINITIONS.—In this section: 
‘‘(1) The term ‘small business concern’ has the 
meaning given that term under section 3 of the Small 
Business Act (15 U.S.C. 632). 
‘‘(2) The term ‘small business concern owned and 
controlled by veterans’ means a small business con-
cern— 
‘‘(A)(i) not less than 51 percent of which is 
owned by one or more veterans or, in the case of 
a publicly owned business, not less than 51 per-
cent of the stock of which is owned by one or 
more veterans; and 
‘‘(ii) the management and daily business 
operations of which are controlled by one or 
more veterans; or 
‘‘(B) not less than 51 percent of which is 
owned by one or more veterans with service-con-
nected disabilities that are permanent and total 
who are unable to manage the daily business op-
erations of such concern or, in the case of a pub-
licly owned business, not less than 51 percent of 
the stock of which is owned by one or more such 
veterans.’’. 
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(b) TRANSITION RULE.—A small business concern that 
is listed in any small business database maintained by the 
Secretary of Veterans Affairs on the date of the enactment 
of this Act shall be presumed to be eligible for inclusion 
in the database under subsection (f) of section 8127 of title 
38, United States Code, as added by subsection (a), during 
the period beginning on the date of the enactment of this 
Act and ending one year after the date of the enactment 
of this Act. Such a small business concern may be removed 
from the database during that period if it is found not to 
be a small business concern owned and controlled by vet-
erans (as defined in subsection (l) of such section). 
(c) COMPTROLLER GENERAL REPORT AND STUDY.— 
(1) During the first three fiscal years for which this section 
is in effect, the Comptroller General shall conduct a study 
on the efforts made by the Secretary of Veterans Affairs to 
meet the contracting goals established pursuant to section 
8127 of title 38, United States Code, as added by subsection 
(a). 
(2) On January 31 of each year during which the 
Comptroller General conducts the study under paragraph 
(1), the Comptroller General shall submit to Congress an 
interim report on such study, placing special emphasis on 
any structural or organizational issues within the Depart-
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ment of Veterans Affairs that might act as an impediment 
to reaching such contracting goals. 
(3) Not later than 90 days after the end of the three- 
year period during which the Comptroller General conducts 
the study under paragraph (1), the Comptroller General 
shall submit to Congress a report on the findings of such 
study. 
(d) CLERICAL AMENDMENT.—The table of sections at 
the beginning of such chapter is amended by inserting after 
the item relating to section 8126 the following new item: 
‘‘8127. Small business concerns owned and controlled by veterans; Department 
contracting goals and preferences.’’. 
SEC. 102. DEPARTMENT OF VETERANS AFFAIRS CON-
TRACTING PRIORITY FOR VETERAN-OWNED 
SMALL BUSINESSES. 
(a) PRIORITY
FOR VETERAN-OWNED SMALL BUSI-
NESSES.—Subchapter II of chapter 81 of title 38, United 
States Code, as amended by section 101(a), is further 
amended by adding at the end the following new section: 
‘‘§ 8128. Contracting priority for small business con-
cerns owned and controlled by veterans 
‘‘(a) IN GENERAL.—In procuring goods and services 
pursuant to a contracting preference under this title or any 
other provision of law, the Secretary shall give priority to 
a small business concern owned and controlled by veterans, 
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if such business concern also meets the requirements of that 
contracting preference. 
‘‘(b) DEFINITION.—The term ‘small business concern 
owned and controlled by veterans’ means a small business 
concern that is on the list maintained by the Secretary 
under section 8127(f) of this title.’’. 
(b) CLERICAL AMENDMENT.—The table of sections at 
the beginning of such chapter, as amended by section 101, 
is further amended by inserting after the item relating to 
section 8127 the following new item: 
‘‘8128. Contracting priority for small business concerns owned and controlled by 
veterans.’’. 
SEC. 103. EFFECTIVE DATE. 
This title and the amendments made by this title shall 
take effect on the date that is 180 days after the date of 
the enactment of this Act. 
TITLE II—MEMORIAL AFFAIRS 
SEC. 201. ELIGIBILITY OF INDIAN TRIBAL ORGANIZATIONS 
FOR GRANTS FOR THE ESTABLISHMENT OF 
VETERANS CEMETERIES ON TRUST LANDS. 
Section 2408 of title 38, United States Code, is amend-
ed by adding at the end the following new subsection: 
‘‘(f)(1) The Secretary may make grants under this sub-
section to any tribal organization to assist the tribal orga-
nization in establishing, expanding, or improving veterans’ 
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cemeteries on trust land owned by, or held in trust for, the 
tribal organization. 
‘‘(2) Grants under this subsection shall be made in the 
same manner, and under the same conditions, as grants 
to States are made under the preceding provisions of this 
section. 
‘‘(3) In this subsection: 
‘‘(A) The term ‘tribal organization’ has the 
meaning given that term in section 3765(4) of this 
title. 
‘‘(B) The term ‘trust land’ has the meaning 
given that term in section 3765(1) of this title.’’. 
SEC. 202. REPEAL OF EXPIRATION AND EXPANDED APPLI-
CATION OF DEPARTMENT OF VETERANS AF-
FAIRS BENEFIT FOR GOVERNMENT MARKERS 
OR HEADSTONES FOR MARKED GRAVES OF 
VETERANS BURIED IN PRIVATE CEMETERIES. 
(a) REPEAL OF EXPIRATION OF GOVERNMENT MARK-
ER BENEFIT AND OBSOLETE PROVISION.—Section 2306(d) 
of title 38, United States Code, is amended by striking 
paragraphs (3) and (4). 
(b) APPLICATION OF GOVERNMENT MARKER BENEFIT 
TO VETERANS DYING ON OR AFTER NOVEMBER 1, 1990.— 
Subsection (d) of section 502 of the Veterans Education and 
Benefits Expansion Act of 2001 (Public Law 107–103; 38 
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U.S.C. 2306 note) is amended by striking ‘‘September 11, 
2001’’ and inserting ‘‘November 1, 1990’’. 
(c) PROVISION OF GOVERNMENT HEADSTONES.— 
(1) PROVISION OF HEADSTONES.—Subsection (d) 
of section 2306 of title 38, United States Code, is 
amended— 
(A) in paragraph (1)— 
(i) in the first sentence, by inserting 
‘‘headstone or’’ after ‘‘Government’’; and 
(ii) in the second sentence, by inserting 
‘‘headstone or’’ before ‘‘marker’’ each place 
it appears; and 
(B) in paragraph (2), by inserting ‘‘head-
stone or’’ before ‘‘marker’’. 
(2) 
CONFORMING
AMENDMENT.—Subsection 
(g)(3) of such section is amended by inserting ‘‘head-
stone or’’ before ‘‘marker’’. 
(d) PLACEMENT OF GOVERNMENT HEADSTONES OR 
MARKERS.—Subsection (d)(1) of such section, as amended 
by subsection (c), is further amended by adding at the end 
the following new sentence: ‘‘If placing the Government 
headstone or marker on the grave for which it is requested 
is impossible or impracticable, a headstone or marker may 
be furnished if the individual making the request for the 
headstone or marker certifies to the Secretary that the head-
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