109TH CONGRESS 
2D SESSION 
H. R. 3082
AN ACT 
To amend title 38, United States Code, to make 
improvements to small business, memorial af-
fairs, education, and employment programs for 
veterans, and for other purposes.
109TH CONGRESS 
2D SESSION 
H. R. 3082
AN ACT 
To amend title 38, United States Code, to make improve-
ments to small business, memorial affairs, education, 
and employment programs for veterans, 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 
‘‘Veterans 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 
specialists and local veterans’ employment representatives. 
Sec. 302. Rules for part-time employment for disabled veterans’ outreach pro-
gram specialists and local veterans’ employment representa-
tives. 
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 dis-
abled veterans. 
Sec. 307. Performance incentive awards for employment service offices. 
Sec. 308. Department of Labor implementation of priority of service for vet-
erans requirement. 
Sec. 309. Demonstration project on credentialing and licensure of veterans. 
TITLE IV—EDUCATION 
Sec. 401. Exception for institutions offering Government-sponsored nonaccred-
ited 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 con-
cerns owned and controlled by veterans with service-con-
nected disabilities, the Secretary shall—
‘‘(A) establish a goal for each fiscal year for 
participation in Department contracts (including 
subcontracts) by small business concerns owned and 
controlled 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 
participation in Department contracts (including 
subcontracts) by small business concerns owned and 
controlled by veterans with service-connected disabil-
ities 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 of-
ficial 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 established 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 or Assistant Secretary had responsibility. If 
the official or Assistant Secretary is found not to have 
met such contracting goals, the official or Assistant Sec-
retary 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 
contract that is counted for purposes of meeting a goal 
established 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 sub-
contract awarded by the contractor that is counted for 
purposes of meeting a goal established pursuant to this 
section was actually awarded to and performed by a busi-
ness concern that may be counted for purposes of meeting 
that goal. The Secretary 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 
section, in entering into a contract with a small business 
concern owned and controlled by veterans for an amount 
less than the simplified acquisition threshold (as defined
in section 4 of the Office of Federal Procurement Policy 
Act (41 U.S.C. 403)), a contracting officer of the Depart-
ment may use procedures other than competitive proce-
dures. 
‘‘(c) SOLE SOURCE CONTRACTS
FOR CONTRACTS 
ABOVE SIMPLIFIED ACQUISITION THRESHOLD.—For pur-
poses of meeting the goals under subsection (a), and in 
accordance with this section, a contracting officer of the 
Department may award a contract to a small business 
concern owned and controlled by veterans using proce-
dures 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 rea-
sonable 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 meet-
ing the goals under subsection (a), and in accordance with 
this 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 veterans 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 veteran 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
BUSI-
NESSES.—(1) Subject to paragraphs (2) through (6), the 
Secretary shall maintain a database of small business con-
cerns 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 
business concern or the veteran.
‘‘(3) Information maintained in the database shall be 
submitted on a voluntary basis by such veterans. 
‘‘(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 serv-
ice-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 
database. 
‘‘(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 in-
formation in a secure and confidential manner. 
‘‘(g) ENFORCEMENT PENALTIES FOR MISREPRESEN-
TATION.—Any small business concern that is determined 
by the Secretary to have misrepresented the status of that 
concern 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
subsection shall be debarred from contracting with the De-
partment for a period of five years. 
‘‘(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 vet-
eran who acquires ownership rights in such small business 
concern 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 busi-
ness concern as a small business concern owned and con-
trolled 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 
remarries. 
‘‘(B) The date on which the surviving spouse 
relinquishes an ownership interest in the small busi-
ness 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 that is in effect at the time of death of such owner 
or surviving 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 under-
goes 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 vet-
erans, 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—
‘‘(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 fol-
lowing: 
‘‘(1) The percentage of the total amount of all 
contracts awarded by the Department during that 
fiscal quarter that were awarded to small business 
concerns 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
awarded to small business concerns owned and con-
trolled by veterans. 
‘‘(4) The percentage of the total amount of all 
contracts awarded by each such Administration dur-
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 
concern—
‘‘(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 percent 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-
connected disabilities that are permanent and 
total who are unable to manage the daily busi-
ness operations of such concern or, in the case 
of a publicly owned business, not less than 51 
percent of the stock of which is owned by one 
or more such veterans.’’.
(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 sub-
section (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 veterans (as defined in subsection 
(l) of such section). 
(c) COMPTROLLER GENERAL REPORT AND STUDY.—
(1) During the first three fiscal years for which this sec-
tion 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-
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 con-
ducts 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 vet-
erans, if such business concern also meets the require-
ments 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 relat-
ing 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 
amended by adding at the end the following new sub-
section: 
‘‘(f)(1) The Secretary may make grants under this 
subsection to any tribal organization to assist the tribal 
organization in establishing, expanding, or improving vet-
erans’ 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 
MARKER 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 BEN-
EFIT 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 U.S.C. 2306 note) is amended by strik-
ing ‘‘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 insert-
ing ‘‘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 
‘‘headstone or’’ before ‘‘marker’’. 
(d) PLACEMENT OF GOVERNMENT HEADSTONES OR 
MARKERS.—Subsection (d)(1) of such section, as amend-
ed by subsection (c), is further amended by adding at the 
end the following new sentence: ‘‘If placing the Govern-
ment 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 re-
quest for the headstone or marker certifies to the Sec-
retary that the headstone 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 pos-
sible or practicable to that grave.’’. 
(e) DELIVERY OF GOVERNMENT HEADSTONES OR 
MARKERS.—Subsection (d)(2) of such section, as amend-
ed by subsection (c), is further amended by inserting be-
fore 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 adding 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 placement.’’.
(g) RETROACTIVE EFFECTIVE DATE.—The amend-
ments made by this section shall apply as if enacted in 
section 502 of the Veterans Education and Benefits Ex-
pansion Act of 2001 (Public Law 107-103; 38 U.S.C. 
2306 note). 
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 
MARKERS.—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 ‘eli-
gible 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 
pursuing a course of instruction at an approved 
educational institution.’’.
(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 
subsections (a) and (b) shall apply with respect to individ-
uals 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 sub-
section: 
‘‘(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.’’.
(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 
employment, and eligibility for continued em-
ployment, of State employees who are des-
ignated as disabled veterans’ outreach program 
specialists and local veterans’ employment rep-
resentatives under this chapter; and 
‘‘(V) the training required or provided by 
the State for State employees who are des-
ignated as disabled veterans’ outreach program 
specialists and local veterans’ employment rep-
resentatives 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 
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.—